The technology will help organizations meet the RBI advisory on preventing internet retail banking fraud in India, the company, backed by Forgepoint Capital, said in a statement.
The statement added that the BlockID uses a combination of SIM detection and SMS verification to validate a user’s mobile number against the number registered with their financial institution or employer to protect against attacks from an unauthorised device
The company’s chief operating officer (APAC), Siddharth Gandhi said, “OTP theft is quite prevalent in India. A gullible customer is approached by a fraudster under the guise of updating their KYC form and ultimately tricked into revealing bank details that are used to transfer large sums of money from the victim’s account,” and claimed: “With this new capability, 1Kosmos BlockID can curb a significant number of such cases.”
Chief starategy officer Mike Engle said: “Mobile devices have become a popular and effective authentication mechanism for online banking, payments and ecommerce applications, but they are vulnerable to account takeover attacks if the phone number of record is changed or the SIM is stolen by a fraudster.”
The statement cited the data from the National Crime Records Bureau (NCRB) to highlight the rate of cybercrime (incidents per lakh people) in the country climbed from 3.3 percent in 2019 to 3.7 percent in 2020. There were 4,047 cases of online banking fraud, 1,093 OTP frauds, 1,194 credit/debit card frauds, and 2,160 cases of ATM fraud detected in 2020.
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As per the NCRB statistics, Uttar Pradesh has the most cybercrime cases with 11,097, followed by Karnataka (10,741), Maharashtra (5,496), Telangana (5,024), and Assam (3,530). However, with 16.2 percent, Karnataka had the highest crime rate, followed by Telangana (13.4 percent), Assam (10.1 percent), Uttar Pradesh (4.8 percent), and Maharashtra (4.4 percent), according to the NCRB data.
