Saturday, 26 July 2014

Financial Start-up 'Credit Sudhaar' To Expand Base In UP

Credit Sudhaar, a start-up company offering 'credit health improvement' services, is keen to expand customers' base in Uttar Pradesh, where it claimed loan default rate is higher.
 
The company has launched a drive to increase awareness amongst people about the importance of good credit health for seeking loans.
 
"India has entered a territory where the past credit history of a person would define whether he/she would get loans from banks and financial institutions and at what rate," Credit Sudhaar co-founder Gaurav Wadhawani said here.
 
He asserted since the default rate in UP was high, the lenders were either hesitant to offer loans or charge a higher interest rate.
 
"The problem is accentuated by the fact that most people are unaware about credit bureau and the importance of maintaining a good credit score," he noted.
 
He said credit health had several components including financial track record, credit score, income-expense ratio, delinquency status, debt burden, ability to access credit on favourable terms. It is based on a person's past and current borrowings and repayments.
 
"Our aim is to promote the importance of good credit health. In our surveys, we have found 97 percent of people unaware about the importance of good credit health whereas 86 percent have not even heard of credit bureau," he informed.
 
Wadhawani claimed the company served 60,000 active members availing of its paid services spread across 270 Indian cities. Headquartered at Mumbai, it also has offices in Hyderabad, Chennai, Bangalore, Pune and Kolkata.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

Courtesy: Business Standard

Friday, 25 July 2014

50 IAF Officers Fall Victim To Credit Card Fraud

50 IAF officers fall victim to credit card fraud
 
More than 50 officials, including senior officials, of the Indian Air Force have become the latest victims of credit card fraud.
 
The Air Force has registered an FIR with the Cyber Cell of Delhi Police in connection with over 50 cases of fraudulent withdrawal of money from State Bank of India (SBI) accounts of its air force officers posted across India. Investigators are probing the role of some insiders and are planning to grill SBI officials and also IAF personnel.
 
A senior police officer said the IAF had shifted bulk of its officers' bank accounts to the SBI in 2009-10 and most of the affected customers are from Defence Salary Package, a large number of them from the Air Force. The case was registered on Wednesday evening following the complaint of the Commanding Officer of IAF's Provost and Security Unit, Wing Commander Tejveer Singh. "We came to know that our Air Force officials had lodged complaints with the local police," said Singh.
 
IAF officials said the step was taken after it emerged that more than 40 such cases had taken place after the accounts of IAF officers were opened with the bank. "The police have found that transactions have been made on two websites of online shopping - Target Canada and American Apparel Montreal Canada. The transactions have taken place from June 22 but have gone up in the second week of July. The transaction amount varies from Rs.11,000 to Rs.3,75, 000," a police source said.
 
Preliminary investigation has also revealed that the victims are mostly gold card users and they are Flying Officer, Flight Lieutenant and Squadron Lead. CWG organising committee chief Suresh Kalmadi. By Mail Today Bureau in New Delhi FIVE years after charges of alleged financial irregularities had hit the Commonwealth Games in Delhi, the Enforcement Directorate (ED) on Thursday gave a clean chit to CWG Joint DG T.S. Darbari for the second time. However, it slapped charges of `4.64 crore forex violations in the Queen's Baton Relay (QBR) event against former CWG organising committee chief Suresh Kalmadi and six others, including Lalit Bhanot.
 
The ED said it had found no evidence against Darbari as no approvals were sought from him, as alleged earlier by the Organising Committee (OC), before taking decisions related to the QBR." The agency issued show cause notices under the Foreign Exchange Management Act (FEMA) to Kalmadi, the then Chairman of the CWG Organising Committee(OC), the then secretary general Lalit Bhanot, the then treasurer A.K. Matoo, director general V.K. Verma, joint DG M. Jeychandran, Deputy DG Sanjay Mahindroo and the officials of the OC. They have been given 30 days' time to reply to ED's notice after which adjudication proceedings under FEMA would begin. Interestingly, most of the accused persons now chargesheeted by the ED constitute key prosecution witness in the CBI chargesheet, say OC sources.
 
A senior ED official, on the condition of anonymity, confirmed that Darbari got a clean chit and said: "We could not substantiate the charges leveled against T.S. Darbari in the FEMA violation case involving payments worth `1.25 crore made to AM Car & Van Hire Ltd, UK for the event. His role is missing in the case and not made a party in the case... however, we have issued show cause notices to others allegedly involved in some more cases which are under investigation." According to sources, Darbari had not been involved in the scam and was made a party to it by Kalmadi's close aides. No evidence was found against him in the last five years of probe, but Darbari was terminated from service by Kalmadi, who was then the chairman of the Games Organising Committee in August 2010.
 
ED has filed FEMA contravention charges on primarily three counts -- illegal dealing of foreign exchange, illegal acquisition of forex in violation of RBI norms and false declarations filed by all the accused during the documentation of the financial transactions pertaining to this event. ED slaps forex charges against Suresh Kalmadi Clean chit given to CWG Joint DG T.S. Darbari IAF officers fall victim to credit card fraud

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

CS IdentityShield helps you to Monitor, Protect and Recover your Identity from multiple risks.

Courtesy: India Today

Thursday, 24 July 2014

Financial Services More Prone To Cybercrime: KPMG

Cybercrime has emerged as a major threat with 58 percent of a KPMG survey respondents perceiving financial services sector as more likely to be prone to cybercrime. About 51 percent perceive themselves to be an easy target for cyber-attacks due to the nature of their business and about 68 percent of the respondents indicated that they assigned less than 20 percent of their IT security budget for preventing cybercrime.
 
Over the past few years, the global cybercrime landscape has changed dramatically, with criminals employing more sophisticated technology and greater knowledge of cyber security says 'Cybercrime Survey 2014' released Monday.
 
According to a statement cybercrime continues to remain a tough challenge for organisations. "With rise in the cybercrime, businesses are increasingly facing impacts not only on the financial front but also irreversible damage to their brands and market reputations. As a result of this growing threat, there is a significant need for corporates to recognize cyber threats and craft cyber response plans. KPMG has released the cybercrime survey report, with a view of providing insights to senior level management/board of Directors and guidance to policy makers on various aspects of managing cybercrime," said Mritunjay Kapur, Partner and Head of Risk Consulting practice, KPMG in India.
 
The Cybercrime Survey 2014 had over 170 participants from the likes of CIOs, CISOs and related professionals from across India. Cybercrime has emerged as a major threat as acknowledged by an overwhelming 89 percent of the survey respondents.
 
Distinctly, about 51 percent perceive themselves to be an easy target for cyber-attacks due to the nature of their business. Out of these 51 percent, about 68 percent respondents claim that they monitor their cybercrime threats on a daily basis. Although 37 percent of the respondents feel risk of cyber-attacks comes from an external source, it is imperative that organisations keep a track of insiders with malicious intent or professional intruders constantly seeking access to sensitive information.
 
The survey also highlights key sectors prone to cyber-attacks. A staggering 58 percent of the survey respondents perceive financial services sector as more likely to be prone to cybercrime. Whereas 11 percent feel communications, entertainment and infrastructure sectors are prone too. In financial sector the value to the attacker would be internet banking and brokerage. Phishing attacks of online banking accounts or cloning of ATM / Debit cards are common occurrences. The increasing use of mobiles for online banking & financial transactions has also increased the vulnerabilities to a great extent.
 
According to the survey, the root cause of most cyber-attacks is monetary gain and attacks have gradually evolved into cybercrime syndicates siphoning off money through illegal cyber channels. Cyber-attackers can be classified based on various aspects such as their qualifications, skill levels, age group and motivations.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

CS IdentityShield helps you to Monitor, Protect and Recover your Identity from multiple risks.

Courtesy: Economic Times

Card Fraud Eating Away At Consumer Confidence

Credit and debit card fraud is starting to erode confidence in providers, with many consumers using cards less often or abandoning them altogether after fraud incidents, a global survey of 6,100 consumers by ACI Worldwide has reported.
 
Curiously, the firm's latest annual survey confirms that total card fraud rates (credit, debit and pre-paid) are now stable or falling in many countries, with 41 percent of US holders reporting that they had experienced it in the previous five years, a slight drop. In the UK, the fall has been even more marked, dropping from 34 percent in 2012 to 28 percent in 2014.
 
Global hotspots remain developing countries such as the UAE, China and India, recording fraud rates of 44 percent, 42 percent and 41 percent respectively.
 
Before anyone gets the idea that the UK is doing well, even these much improved rates compare pretty poorly to other Western European countries such as Germany on 16 percent and Sweden on 10 percent. Even traditional digital crime zone Russia is lower at 23 percent.
 
What does seem to be changing is how consumers view these fraud levels, and how this affects the way they use their cards.
 
In the US, cards replaced because of fraud - or worse still because of a data breach - are likely to be used less often than they were before an incident. Around in one in four say they used fraud-hit cards less often than before, presumably because of the fear of a repeat incident.
 
There is even a technical term for this behaviour - the 'back of wallet' relegation.
 
Although consumers in countries such as the US seem unlikely to lose confidence completely (US consumers are largely protected against fraud losses), around 12 percent believe that providers should be doing more.
 
In the UK, 14 percent of card users reported changing cards after experiencing fraud, with 36 percent using them less.
 
It's difficult to make too many generalisations on global attitudes to fraud incidents because culture, financial regulation and the level of fraud vary so widely. The study does suggest that consumers are growing more tired of fraud as an ingrained phenomenon, a trend exacerbated by the rise of online data breaches.
 
"Consumers are increasingly concerned about fraud, and are losing confidence on a variety of levels," said ACI Worldwide senior vice president, Mike Braatz. "They are unsure that their financial institutions can protect them against fraud; they use replacement cards less often due to a loss of confidence in the card or card issuer, after experiencing fraud; and post-fraud, they often change providers or their cards go to back of wallet.
 
ACI Worldwide's message is mainly for the card providers themselves; don't take consumers for granted. It is also a sign that after years of apparent indifference to fraud levels, growing consumer dissatisfaction could be a new pressure for the industry to invest in security.
 
In the US, card fraud levels should continue to drop as EMV (Europay, MasterCard and Visa) authentication technology is rolled out to meet standards achieved by most of the rest of the world many years ago.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

CS IdentityShield helps you to Monitor, Protect and Recover your Identity from multiple risks.

Courtesy: Computer World

Tuesday, 22 July 2014

Borrowers With Higher Credit Score Have More Chance For Loan

COIMBATORE: Borrowers with a credit score of 700 and above have a higher chance of getting their loan and credit card applications approved by banks, according to a study by Credit Information Bureau (India) Ltd (CIBIL).
 
This, the study said, indicated that Cribil TransUnion score has become an integral risk assessment tool for banks and financial institutions for sanctioning any new credit, Harshala Chandorkar, Senior Vice President, Consumer Relations and Communication, CIBIL, told reporters here today.
 
Credit grantors increasingly relied on CIBIL's services to make objective, faster and prudent lending decisions, she said, adding that many industry leaders also attrributed the decline in defaults and improvement in asset quality to the information support received from CIBIL.
 
To prove her point, Harshala said that usage of credit information has tamed the NPA rate, which was around 1.9 per cent in 2010 to under 1.3 per cent in 2013 and there was almost 30 per cent reduction in NPA rates over the last four years.
 
About 80 per cent of credit active population has a CIBIL TransUnion score greater that 750, which indicate that banks are increasingly lending to borrowers with higher CIBIL, she said.
 
There was more than 200 per cent increase in credit applications over the last three years, Harshala said and added, without revealing the numbers, that highest growth was witnessed in personal loans and two-wheelers segments followed by home loans over the last five years.
 
States of Maharashtra, Andhra Pradesh, Karnataka, Uttar Pradesh and Tamil Nadu contributed to almost 50 per cent of all enquiries for credit, Harshala said.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

Courtesy: Economic Times

Monday, 21 July 2014

Cybercrimes Alone Cost India Rs 24,630 Crore In 2013

Cybercrime cost India about Rs 24,630 crores ($4 billion) in 2013, according to a report commissioned by the Delhi high court and submitted by Surinder S. Rathi, additional district judge and OSD to Delhi Legal Service Authority (DLSA).
 
The report, however, gave no further details about how it had computed the cost of cybercrime.
 
The report was commissioned in pursuance of a direction by the high court that a comprehensive study must be conducted on various issues, including the cost incurred in running the criminal justice system.
 
The bench of Justices Gita Mittal and J.R. Midha, which is yet to pronounce the quantum of sentence to three convicts, including Vikas Yadav, in the 2002 Nitish Katara murder case, had also asked the DLSA to compute the cost incurred in the trial of this case, besides determining the compensation paying capacity of the convicts.
 
In India, no empirical study has been conducted as to how much does a criminal case cost the exchequer and the taxpayers right from registration of the FIR to its logical conclusion post the trial in sentencing, the report said.
 
It said that despite India having 12,700-odd police stations and 15.70 lakh policemen manning them, incidents of crime have been spiralling uncontrollably.
 
“A lot is being done in this regard by all the stakeholders, but unfortunately owing to lack of scientific methodology and concerted efforts of all concern not much headway could be achieved,” the report said. It also said that the police, the first ring of criminal justice system, was in an almost pitiable state nationwide.
 
“Neither it (police) has the requisite manpower to deliver nor the technical expertise nor the infrastructure to contain crimes. To make things worse malice of corruption is eating into its vitals,” the report said.
 
It said the judiciary, the second ring of criminal justice system, was also not “far behind in fulfilling its constitutional obligations and meeting the expectations of its citizen of delivery of timely justice.”
 
“Courts are inundated with lakhs of cases pending trial. Such is the snail pace of trials that influx of cases at any point of time is outdoing the disposal. All this is resulting in piling up of cases in courts,” the report said.
 
The report also added that the ancillary support system, like jails, juvenile, justice boards, child welfare committees and forensic labs, all need to be brought out of slumber and urgently to save this system from crumbling.
 
On the cost of criminal justice system, the report said that measuring the cost of criminal justice is not easy, yet it is essential to the proper appraisal of any criminal justice system policy. “There is a urgent need to develop a comprehensive methodology for calculating the cost incurred by society on account of various criminal offences,” it said.
 
In its chapter on “Cost of Criminal Justice System,” the report, quoting the National Crime Records Bureau data, said that in 2013, as many as 66.40 lakh criminal complaints were received by the police stations across the nation. It said that in Delhi alone, a total of 86,800 criminal complaints were received at its 175-odd police stations apart from about 89 lakh distress calls received by it in 2013.
 
“Although better part of the world has awaken to the exorbitant financial cost of running the criminal justice system, but our country is yet to take its first step in the right direction. Owing to mindless and unscientific planning all the wings of criminal justice system are highly chaotic in their functioning and are immensely overburdened,” the report said.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

CS IdentityShield helps you to Monitor, Protect and Recover your Identity from multiple risks.

Courtesy: Asia Age

Side Effects Of Multiple Credit Cards

Credit card companies come up with tempting card offers for investors, albeit now more cautiously after the financial markets turmoil, by offering freebies such as life-time free credit, among other things.
 
Customers already possessing credit cards often find themselves taking up such offers and ending up with multiple credit cards. The moot question here is, should you be content with having one credit card or does it make sense to have multiple credit cards and if so, how many are enough?
 
Let’s understand what the benefits and pitfalls of having multiple credit cards could be.
 
Why would one need more than one credit card?
 
Credit Limit: If you feel that your credit limit on the single card doesn’t suffice, then you may need more than one card. Nevertheless, remember, if you have a good payment history, credit card companies reward you by enhancing your credit limit, which may eliminate the need to go in for one extra card.
 
So make sure you make your credit card payments on time- the benefits are manifold. You credit score will not get adversely impacted, you will not have to pay high interest on your card and credit card companies may enhance your credit limit.
 
Convenience: At times, merchants do not accept all cards, for example, some may accept only Visa or MasterCard. So if you have only one card, you may face inconvenience. Also, sometimes your card may get rejected for technical and other reasons. So a back up is required.
 
Fraud Protection: If you use your credit card for online transactions, for fraud protection, you may find it useful to use only one card for such purpose and restrict the credit limit on it, so that even if your card details are hacked, the extent of damage is limited.
 
Benefit-oriented cards: There are some cards which provide maximum privileges or a good deal if used for a particular purpose such as petrol purchases or air miles. You may want to take advantage of the same and therefore have a card for that purpose only.
 
What are the drawbacks of having multiple cards?
 
Credit history: Maintaining a clean credit history is becoming increasingly important with credit bureaus, like Cibil tracking your payment. The probability of missing a payment date is higher if you possess several credit cards as you will have to keep track of the payment date of each of the credit cards. If you renege on your payments, your credit history will be get affected, which will adversely impact your credit score and your ability to get loans in the future. Multiple credit cards require you be to very responsible.
 
Purchasing Power: Credit cards give you the purchasing power as you do not need money in your account to make a purchase. If you are impulsive, then having multiple cards can prove to be a recipe for disaster as you may spend without thinking of your repayment capability. That will result in postponement of payments and over a period of time, accumulate into a large debt.
 
Effort: Managing multiple credit cards is an effort because it requires a proper schedule, which you need to figure out and keep a tab on. You need to keep track of the payment dates, the interest free period and the credit limit.
 
There is no clear cut method that determines how many cards are enough. One may not suffice, because you need a back up just in case your credit card is not getting accepted for whatever reason and also for various other reasons as stated above. But at the same time, having too many cards requires you to act responsibly so that you do not tarnish your credit history and find yourself in a financial mess. So the next time you receive a call for a credit card, ask yourself whether it adds any value for you and whether you will be able to manage it responsibly!

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

CS IdentityShield helps you to Monitor, Protect and Recover your Identity from multiple risks.

Courtesy: Financial Express