Coaching Institutes Upset Over Murthy’s IIT Comment
Infy founder had blamed coaching classes for poor quality of students
Are coaching institutes to blame for poor quality of IIT students? Somewhat, says the industry, but blames other factors like education system too. An entry into the coveted Indian Institutes of Technology (IIT) got a snub on Monday from the Infosys chairman emeritus NR Narayana Murthy. Murthy said at a ‘Pan IIT’ summit in New York that the quality of students entering IITs has deteriorated over the years due to the coaching classes that prepare engineering aspirants. The quality of students and their employability has been a cause of concern for the industry. Says Manjunath SR, senior director, human resources, NetApp India, “There has not been any change in the quality of students either for the better or worse. The same hiring and selection process is applied for all engineering colleges and the IIT students do not need any lesser time for training compared to a non-IITian and, after training, their productivity is same as others.” The company takes 50-60 students from IITs every year and has been doing this for the past four years. Ganesh Shermon, people practice head for KPMG, has seen a drop in the quality because now students are tested for admissions only on 2-3 subjects and on questions that can be cracked through sheer practice. Som Mittal, an IITian and Nasscom president, says, “Murthy’s issue is perhaps about expectations. Even today IITs will probably be producing best in class, but are they at the same level as earlier?” Over the years, both in terms of size and volume, IITs have expanded. The standards at IITs are very high. JEE was a great filter, but it is dominated by students trained at the coaching classes. “This is not criticism, but a time to look at what we need to do to maintain the standards in the future,” Mittal adds. Some, like Dhananjay Bansod, chief people officer of Deloitte, blame the education system. “I empathise with Murthy on the coaching bit, but the fault lies with the entire education system. Our education system is far slower to change compared to changing industry needs,” says Bansod. Deloitte visits all top IITs, including Delhi, Kanpur, Bombay and Madras for campus recruitment. The fault, according to him, lies in the selection process that tests quantitative skills. “You need both quantitative and qualitative skills to make it work at the workplace,” he says. Every year more than half-amillion students sit for joint entrance examination for admission to IITs and only 10,000 get through. IIT Kanpur director Sanjay Dhande agrees things are amiss. “The IIT education model has to get more liberalised and the curriculum needs to get revised, but the changes are slow to come. The core courses have to be far more liberal than what we are doing right now, and it has to be more broad-based like a major and a minor subject all together,” he says. The need to overhaul the admission process has already been announced and there is a task force that will be looking to include the consistency in school boards examinations and add an aptitude test as well, says IIT Madras director Bhaskar Ramamurthi. There has been a tendency to ignore school board results that includes languages which will be changed. S Sadagopan, founder director of IIIT, Bangalore, vouches for lack of enthusiasm among the students. “Coaching starts when students are in class 9. By the time students make it to the IIT, their enthusiasm goes down. There has to be more imaginative scheme for admission than just a score.” Coaching institutes, for their part, are upset with Murthy’s statement. Says Satya Narayanan R, founder chairman of Delhi-based coaching institute Career Launcher, “I find the statement a little disappointing. Mr Narayana Murthy is simplifying the problem of employability. Coaching institutes are doing their job. If someone wants to get into an IIT, somebody has to train them.” According to him, the problem is multifarious. “We need to make the education system more student-centric. The school is focused on finishing the curriculum,” he says. Defending coaching methods, Pramod Kumar Bansal, CEO of Bansal Classes, says, “We teach the students keeping in mind the vast IIT syllabus. Coaching centres help students understand the routine and give them a systematic approach to crack the exams.” The institute is training 14,000 students for JEE in Kota and Jaipur. Anand Kumar, founder member of Super 30, an institute in Bihar that has had a success rate of 80% to 100% in terms of its students clearing the exam, blames professors. “Our students are capable enough. Those who set the questions should be questioned as to why they did not set a paper that will bring in the best. IIT professors should then be blamed and not coaching institutes,” says Kumar.
(ET5Oct11)
Wednesday, October 5, 2011
CHETAN BHAGAT REBUTS NARAYANA MURTHY
Chetan Bhagat takes on Narayana Murthy on IIT remark
PTI Oct 4, 2011
NEW DELHI: Chetan Bhagat, an IIT alumnus turned-celebrity writer, took umbrage at Infosys chairman emeritus N R Narayana Murthy's "sweeping" comments on the quality of engineers churned out by premier IITs.
Slamming Murthy, Bhagat said today that such comments should not have come from a person who runs a "body shopping" company and calls it "hi-tech."
"It is ironic when someone who runs a body shopping company and calls it hi-tech, makes sweeping comments on the quality of IIT students," said Bhagat in a tweet on the microblogging site Twitter.
Taking up cudgels for the students from the country's centres of excellence, Bhagat referred to the contribution of IIT students in the making of Information Technology(IT) major Infosys.
"IITians have made a great contribution in making Infosys what it is. Hope people remember that," said Bhagat, who did his Mechanical Engineering from IIT, Delhi.
In Bhagat's view, Murthy should not have been so "sweepingly highanded."
"Mr Murthy had a point, but wish he wasn't so sweepingly high handed. Fix the system. No point judging students," he said.
Voicing his displeasure over the quality of engineers that pass out of the IITs, Murthy said the majority of these students fared poorly at jobs and global institutions of higher education.
Addressing a gathering of hundreds of former IITians at a 'Pan IIT' summit in New York, Murthy said the quality of students entering Indian Institutes of Technology (IITs) has deteriorated over the years due to the coaching classes that prepare engineering aspirants.
It is for the second time that Bhagat has reacted strongly when questions were raised about the IITs.
When the outspoken Union Minister Jairam Ramesh kicked of a controversy with his remark that the faculty at the country's premier engineering institutes, the IITs, is not world class, Bhagat rebuffed him asking how many politicians in India were world class.
Ramesh had however said that students of the IITs are world class.
PTI Oct 4, 2011
NEW DELHI: Chetan Bhagat, an IIT alumnus turned-celebrity writer, took umbrage at Infosys chairman emeritus N R Narayana Murthy's "sweeping" comments on the quality of engineers churned out by premier IITs.
Slamming Murthy, Bhagat said today that such comments should not have come from a person who runs a "body shopping" company and calls it "hi-tech."
"It is ironic when someone who runs a body shopping company and calls it hi-tech, makes sweeping comments on the quality of IIT students," said Bhagat in a tweet on the microblogging site Twitter.
Taking up cudgels for the students from the country's centres of excellence, Bhagat referred to the contribution of IIT students in the making of Information Technology(IT) major Infosys.
"IITians have made a great contribution in making Infosys what it is. Hope people remember that," said Bhagat, who did his Mechanical Engineering from IIT, Delhi.
In Bhagat's view, Murthy should not have been so "sweepingly highanded."
"Mr Murthy had a point, but wish he wasn't so sweepingly high handed. Fix the system. No point judging students," he said.
Voicing his displeasure over the quality of engineers that pass out of the IITs, Murthy said the majority of these students fared poorly at jobs and global institutions of higher education.
Addressing a gathering of hundreds of former IITians at a 'Pan IIT' summit in New York, Murthy said the quality of students entering Indian Institutes of Technology (IITs) has deteriorated over the years due to the coaching classes that prepare engineering aspirants.
It is for the second time that Bhagat has reacted strongly when questions were raised about the IITs.
When the outspoken Union Minister Jairam Ramesh kicked of a controversy with his remark that the faculty at the country's premier engineering institutes, the IITs, is not world class, Bhagat rebuffed him asking how many politicians in India were world class.
Ramesh had however said that students of the IITs are world class.
NARAYANA MURTHY BLASTS IITs
Poor quality of students entering IITs: Narayana Murthy
PTI Oct 3, 2011
NEW YORK: Voicing his displeasure over the quality of engineers that pass out of the IITs, Infosys chairman emeritus N R Narayana Murthy has said there is a need to overhaul the selection criteria for students seeking admission to the prestigious technology institutions. Addressing a gathering of hundreds of former IITians at a 'Pan IIT' summit here, Murthy said the quality of students entering Indian Institutes of Technology (IITs) has deteriorated over the years due to the coaching classes that prepare engineering aspirants. He said the majority of the students fare poorly at jobs and global institutions of higher education. "Thanks to the coaching classes today, the quality of students entering IITs has gone lower and lower," Murthy said, receiving a thundering applause from his audience. He said apart from the top 20% of students who crack the tough IIT entrance examination and can "stand among the best anywhere in the world," quality of the remaining 80 per cent of students leave much to be desired. Coaching classes teach aspirants limited sets of problems, out of which a few are asked in the examinations. "They somehow get through the joint entrance examination. But their performance in IITs, at jobs or when they come for higher education in institutes in the US is not as good as it used to be. "This has to be corrected. A new method of selection of students to IITs has to be arrived at." Drawing a road map to put IITs among the top engineering institutes in the world, Murthy said it has to be ensured that IITs "transcend from being just teaching institutions to reasonably good research institutes" at par with Harvard and MIT in the next 10-20 years. "Few IITs have done well in producing PhDs but in reality when we compare ourselves to institutions in this country, we have a long way to go," he said. More emphasis has to be given to research at the undergraduate level and examinations should test independent thinking of students rather than their ability to solve problems. Murthy said in order to produce good research at IITs, the Indian government has to be persuaded to create institutions that fund research projects. In addition, faculty members should also be evaluated annually on their research performance by an independent committee, Murthy said adding that India must shift from the tenure system for its faculty to a five year contractual appointment system. The Infosys mentor also lamented the poor English speaking and social skills of a majority of IIT students, saying with Indian politicians "rooting against English", the task of getting good English speaking students at IITs gets more difficult. "An IITian has to be a global citizen and must understand where the globe is going," he added. Murthy also stressed the need to have the governing council of IITs made up of its alumni. The only way IITs can become better is if 80-90 per cent of members on their governing council are alumni. "Nobody is bothered about an institution more than its alumni. We must somehow persuade the government of India to let go of its control and make sure majority of the council members is the IIT alumni." Murthy urged IITians spread across the globe to work with their alma mater to ensure that IITs are among the top 10 engineering schools of the world. He said while only a couple of IITs feature in the top 50, there should be at least five IITs in the top 10 engineering schools in the world in the next 10-20 years, he added.
PTI Oct 3, 2011
NEW YORK: Voicing his displeasure over the quality of engineers that pass out of the IITs, Infosys chairman emeritus N R Narayana Murthy has said there is a need to overhaul the selection criteria for students seeking admission to the prestigious technology institutions. Addressing a gathering of hundreds of former IITians at a 'Pan IIT' summit here, Murthy said the quality of students entering Indian Institutes of Technology (IITs) has deteriorated over the years due to the coaching classes that prepare engineering aspirants. He said the majority of the students fare poorly at jobs and global institutions of higher education. "Thanks to the coaching classes today, the quality of students entering IITs has gone lower and lower," Murthy said, receiving a thundering applause from his audience. He said apart from the top 20% of students who crack the tough IIT entrance examination and can "stand among the best anywhere in the world," quality of the remaining 80 per cent of students leave much to be desired. Coaching classes teach aspirants limited sets of problems, out of which a few are asked in the examinations. "They somehow get through the joint entrance examination. But their performance in IITs, at jobs or when they come for higher education in institutes in the US is not as good as it used to be. "This has to be corrected. A new method of selection of students to IITs has to be arrived at." Drawing a road map to put IITs among the top engineering institutes in the world, Murthy said it has to be ensured that IITs "transcend from being just teaching institutions to reasonably good research institutes" at par with Harvard and MIT in the next 10-20 years. "Few IITs have done well in producing PhDs but in reality when we compare ourselves to institutions in this country, we have a long way to go," he said. More emphasis has to be given to research at the undergraduate level and examinations should test independent thinking of students rather than their ability to solve problems. Murthy said in order to produce good research at IITs, the Indian government has to be persuaded to create institutions that fund research projects. In addition, faculty members should also be evaluated annually on their research performance by an independent committee, Murthy said adding that India must shift from the tenure system for its faculty to a five year contractual appointment system. The Infosys mentor also lamented the poor English speaking and social skills of a majority of IIT students, saying with Indian politicians "rooting against English", the task of getting good English speaking students at IITs gets more difficult. "An IITian has to be a global citizen and must understand where the globe is going," he added. Murthy also stressed the need to have the governing council of IITs made up of its alumni. The only way IITs can become better is if 80-90 per cent of members on their governing council are alumni. "Nobody is bothered about an institution more than its alumni. We must somehow persuade the government of India to let go of its control and make sure majority of the council members is the IIT alumni." Murthy urged IITians spread across the globe to work with their alma mater to ensure that IITs are among the top 10 engineering schools of the world. He said while only a couple of IITs feature in the top 50, there should be at least five IITs in the top 10 engineering schools in the world in the next 10-20 years, he added.
Tuesday, October 4, 2011
BUSINESS LEADER OF THE YEAR
Business Leader CHANDA KOCHHAR
Banking’s Iron Lady Held Her Ground, Stretched the Limits
THE AWARD SEEKS TO honour a leader who has clearly demonstrated a strategic direction for success, and pursued a vision
Exactly three years ago, ICICI Bank was battling baseless and malicious rumours about its financial strength. Depositors in a few pockets in the country were lining up to pull their money out of the bank. ICICI Bank successfully quelled those rumours and less than three months later, announced that Chanda Kochhar would succeed Kundapur Vaman Kamath in May 2009. It was a tough time to take over. But it was a tough woman who was taking over. Three years have gone by and Kochhar, 49, has led the bank back to its familiar place of dominance. Credit for ICICI Bank’s revival goes to scores of its top executives, but it would not have happened but for the chief executive herself. “We had chalked out a strategy two years ago to consolidate the balance sheet of the bank and thereafter resume growth,” Kochhar told ET. “And last year, the challenge was that it was a year where we were resuming growth while retaining the benefits of consolidation. The second big challenge last year was integration of Bank of Rajasthan with ICICI Bank in terms of technology and manpower,” she added. Consolidation resulted in the country’s largest private bank garnering low-cost deposits and reducing its overall cost. During her tenure at the helm, CASA, or the share of low-cost deposits, rose from 28.7% in March 2009 to 45% in March 2011, and in the same period, provision cost to total loans came down from 2% to 0.8%. Going forward, she told ET, the challenge would be to get back to the growth path with a sustainable and profitable model. “We will now get back to growth in full gear, but this would be done without sacrificing the benefits of consolidation,” Kochhar said. She was also quick to give credit to her colleagues who have helped the bank through difficult times. It has 60,000 employees and over 2,500 branches. Kochhar, who was one of the key architects of the bank’s aggressive expansion before 2008, is candid in admitting errors of the past — including some excesses in retail lending, which she earlier set up and managed. “In times like these, you have to conserve capital, you have to maintain liquidity and you have to contain risk,” she said, about six-eight months ago. Between 2001 and 2006, when she headed retail banking, ICICI Bank grew at its fastest pace. Loans to retail customers surged more than 30-fold. If she was bold as head of retail banking, she is wise as its CEO. In two years after she took over, unsecured retail loans portfolio is down from 10% to 3% of total loan book and share of wholesale deposits is down to 50% from 60% reflecting her agility in doing what the bank needs the most rather than sticking to her past beliefs. "Consolidation does call for some not so pleasant and not so popular decisions," she had said in the past. This achievement did not come easily. She not only faced challenges in the market, but also from within. She weathered the storm when many of her colleagues, who worked closely with her, quit the bank. But it did not deter her and the courage with which she handled those tumultuous days is helping her reap the benefits. “When an organisation grows at 35-40 per annum for 10 years and adds 10 new businesses during that period, young professionals get the kind of exposure they would not have got anywhere else. We have groomed people to build and run businesses like insurance, securities and retail. So, if other players are looking to grow who would they pick? The best person would be someone who has already run the business,” Kochhar had said earlier. Kochhar began her career with ICICI Bank soon after she completed her MBA from Jamnalal Bajaj Institute. She is among the youngest CEOs in commercial banking. She is known to be a movie and music buff.
(ET 5OCT11)
Banking’s Iron Lady Held Her Ground, Stretched the Limits
THE AWARD SEEKS TO honour a leader who has clearly demonstrated a strategic direction for success, and pursued a vision
Exactly three years ago, ICICI Bank was battling baseless and malicious rumours about its financial strength. Depositors in a few pockets in the country were lining up to pull their money out of the bank. ICICI Bank successfully quelled those rumours and less than three months later, announced that Chanda Kochhar would succeed Kundapur Vaman Kamath in May 2009. It was a tough time to take over. But it was a tough woman who was taking over. Three years have gone by and Kochhar, 49, has led the bank back to its familiar place of dominance. Credit for ICICI Bank’s revival goes to scores of its top executives, but it would not have happened but for the chief executive herself. “We had chalked out a strategy two years ago to consolidate the balance sheet of the bank and thereafter resume growth,” Kochhar told ET. “And last year, the challenge was that it was a year where we were resuming growth while retaining the benefits of consolidation. The second big challenge last year was integration of Bank of Rajasthan with ICICI Bank in terms of technology and manpower,” she added. Consolidation resulted in the country’s largest private bank garnering low-cost deposits and reducing its overall cost. During her tenure at the helm, CASA, or the share of low-cost deposits, rose from 28.7% in March 2009 to 45% in March 2011, and in the same period, provision cost to total loans came down from 2% to 0.8%. Going forward, she told ET, the challenge would be to get back to the growth path with a sustainable and profitable model. “We will now get back to growth in full gear, but this would be done without sacrificing the benefits of consolidation,” Kochhar said. She was also quick to give credit to her colleagues who have helped the bank through difficult times. It has 60,000 employees and over 2,500 branches. Kochhar, who was one of the key architects of the bank’s aggressive expansion before 2008, is candid in admitting errors of the past — including some excesses in retail lending, which she earlier set up and managed. “In times like these, you have to conserve capital, you have to maintain liquidity and you have to contain risk,” she said, about six-eight months ago. Between 2001 and 2006, when she headed retail banking, ICICI Bank grew at its fastest pace. Loans to retail customers surged more than 30-fold. If she was bold as head of retail banking, she is wise as its CEO. In two years after she took over, unsecured retail loans portfolio is down from 10% to 3% of total loan book and share of wholesale deposits is down to 50% from 60% reflecting her agility in doing what the bank needs the most rather than sticking to her past beliefs. "Consolidation does call for some not so pleasant and not so popular decisions," she had said in the past. This achievement did not come easily. She not only faced challenges in the market, but also from within. She weathered the storm when many of her colleagues, who worked closely with her, quit the bank. But it did not deter her and the courage with which she handled those tumultuous days is helping her reap the benefits. “When an organisation grows at 35-40 per annum for 10 years and adds 10 new businesses during that period, young professionals get the kind of exposure they would not have got anywhere else. We have groomed people to build and run businesses like insurance, securities and retail. So, if other players are looking to grow who would they pick? The best person would be someone who has already run the business,” Kochhar had said earlier. Kochhar began her career with ICICI Bank soon after she completed her MBA from Jamnalal Bajaj Institute. She is among the youngest CEOs in commercial banking. She is known to be a movie and music buff.
(ET 5OCT11)
DONKEY OR DOG
Read and think-You may find one in your midst!!!!!
There was once a washer man who had a donkey and a dog. One night when the whole world was sleeping, a thief broke into the house, the washer man was fast asleep too but the donkey and the dog were awake. The dog decided not to bark since the master did not take good care of him and wanted to teach him a lesson.
The donkey got worried and said to the dog that if he doesn't bark, the donkey will have to do something himself. The dog did not change his mind and the donkey started braying loudly.
Hearing the donkey bray, the thief ran away, the master woke up and started beating the donkey for braying in the middle of the night for no reason.Moral of the story "One must not engage in duties other than his own"
Now take a new look at the same story...
The washer man was a well educated man from a premier management institute. He had the fund as of looking at the bigger picture and thinking out of the box. He was convinced that there must be some reason for the donkey to bray in the night.. He walked outside a little and did some fact finding, applied a bottom up approach, figured out from the ground realities that there was a thief who broke in and the donkey only wanted to alert him about it. Looking at the donkey's extra initiative and going beyond the call of the duty, he rewarded him with lot of hay and other perks and became his favorite pet.
The dog's life didn't change much, except that now the donkey was more motivated in doing the dog's duties as well. In the annual appraisal the dog managed "ME" (Met Expectations).
Soon the dog realized that the donkey is taking care of his duties and he can enjoy his life sleeping and lazing around.
The donkey was rated as "star performer". The donkey had to live up to his already high performance standards. Soon he was over burdened with work and always under pressure and now is looking for a NEW JOB ...!!!!
Disclaimer: All characters in the story are not at all imaginary. Any resemblance to person living or dying of work is purely INTENTIONAL
Sent by GGR
There was once a washer man who had a donkey and a dog. One night when the whole world was sleeping, a thief broke into the house, the washer man was fast asleep too but the donkey and the dog were awake. The dog decided not to bark since the master did not take good care of him and wanted to teach him a lesson.
The donkey got worried and said to the dog that if he doesn't bark, the donkey will have to do something himself. The dog did not change his mind and the donkey started braying loudly.
Hearing the donkey bray, the thief ran away, the master woke up and started beating the donkey for braying in the middle of the night for no reason.Moral of the story "One must not engage in duties other than his own"
Now take a new look at the same story...
The washer man was a well educated man from a premier management institute. He had the fund as of looking at the bigger picture and thinking out of the box. He was convinced that there must be some reason for the donkey to bray in the night.. He walked outside a little and did some fact finding, applied a bottom up approach, figured out from the ground realities that there was a thief who broke in and the donkey only wanted to alert him about it. Looking at the donkey's extra initiative and going beyond the call of the duty, he rewarded him with lot of hay and other perks and became his favorite pet.
The dog's life didn't change much, except that now the donkey was more motivated in doing the dog's duties as well. In the annual appraisal the dog managed "ME" (Met Expectations).
Soon the dog realized that the donkey is taking care of his duties and he can enjoy his life sleeping and lazing around.
The donkey was rated as "star performer". The donkey had to live up to his already high performance standards. Soon he was over burdened with work and always under pressure and now is looking for a NEW JOB ...!!!!
Disclaimer: All characters in the story are not at all imaginary. Any resemblance to person living or dying of work is purely INTENTIONAL
Sent by GGR
YOUR VERY PRIVATE ONLINE DIARY
Maintaining a handwritten diary or personal record was considered a healthy practice before computers came along. We may have lost the ability to put pen to paper, but there’s still some good to be derived from keeping a personal journal – albeit an electronic one. At www.penzu.com, you can create a free, online journal in under a minute. Penzu claims that jotting down the day’s events or your thoughts will lower stress levels, improve your immune functions and help boost your memory. Your journal will be strictly private, saved online, accessible wherever you want it to be and from from multiple kinds of devices. And since it isn’t a physical diary or journal, it can’t get lost. Your account will only be accessible via a username and password – but for extra security, you can also go ahead and secure each entry you make with a password. That way, if you accidentally leave the account signed in, no one will be able to snoop around what you wrote about. The service is free, but adsupported. Which means that you do have to put up with some visible ads when you log in, but they don’t have any annoying banners or blinking ads – just some discreet ones that won’t occupy your mindspace.
- HITESH RAJ BHAGAT ETCD 30S911
- HITESH RAJ BHAGAT ETCD 30S911
HOW TO PROTECT YOURSELF AGAINST FRAUD
Credit card fraud and identity theft are rising at a rapid pace.
Here’s how you can protect yourself against them......explains the article.
There is some good news in your inbox. Your wait for a tax refund is over. At least that is what the mail says: “The Reserve Bank of India takes full responsibility of your tax refund to your bank account. Please select your bank and complete the refund request.” All you have to do is open the link, key in your name, credit card number and code number at the back of the card, it says. Wait a minute... Tax refund from the RBI? Credit card details for a refund? If these questions didn’t crop up in your mind, you may have fallen victim to Net fraud. The RBI or the Income Tax Department never ask for your PIN, passwords or credit card details. So, the next time you see such a mail, delete it. Netizens regularly receive mails that tell them about jackpot prizes they have won and ask for bank or credit card details to transfer millions. “In the faceless, new era of banking, a customer’s identification is done through his user ID and password. This has brought new vulnerabilities as anybody who possesses these can transact on his behalf,” says RVS Sridhar, president, IT & RBO, Axis Bank. Common frauds The most common Net attacks are phishing (fraudulent e-mails) and vishing (fake voice messages and phone calls), data leaks while a card is inserted or swiped on a machine and copying of the personal identification number (PIN). Stealing information through counterfiet cards is also rampant. The data on the magnetic strip is electronically copied on to another card,while a surveillance camera observes the user’s PIN, and this is then used without the cardholder’s knowledge. ATMs are more vulnerable than other channels. Says Uttam Nayak, country manager, Visa: “ATMs have poor security at the location and some controls on other platforms are missing.” If you travel abroad frequently and use your credit or debit card, beware. An RBI report says that counterfeiting typically happens during international travel. Parampreet Kaur, 31, who works with an advertising agency in Delhi, had travelled to London in 2009 and shopped through her add-on card. A month after she returned, she got an SMS asking whether she had made transactions worth 2.82 lakh in Delhi. Realising that something was fishy she wrote to the foreign bank. “I was told that my card had been skimmed and eight transations were made on it,” she says. Even those who transact using cards on foreign Websites need to be careful. “Chances of fraudulent attack are higher on these as the 2-factor authentication mandated by the RBI is only for Web businesses in India,” says Bhavin Mody, senior product manager, ElectraCard Services. Steps taken by banks Banks are adopting measures to bring down fraud losses. Unusual transactions are immediately crosschecked with the customer. Card issuers are also moving away from the traditional magnetic strip-based cards to more sophisticated ones. ATM manufacturers are doing their bit by adding security features. A fraudulent device inhibitor makes it difficult for criminals to attach foreign devices on or around the card reader. “The machine has a screen which asks the consumer ‘Does your ATM card slot look like this?’ If it looks different than that in the picture, consumers are advised not to transact and inform the bank,” says Rakesh Aulaya, PR manager, South Asia Pacific, NCR, an ATM manufacturer. Soon, many machines won’t allow anyone else to use your card at the ATM. “Banks have started installing biometric ATMs. It is an effective way of preventing PIN theft,” adds Aulaya. Banks are also issuing one-time use passwords to customers. Preventive Measures ATMs While making transactions, watch out for suspicious looking devices around the machine. Block the view of the number pad with one hand while keying in the PIN. This may not be enough, though. “Criminals get better and better and may use small things which may lead to data leakages. There may be a fake keypad atop the number pad. So, be alert,” suggests Jelle Niemantsverdrie, principal consultant, forensics and investigative response, EMEA Verizon Business Security Solutions. If your card is stuck inside an ATM, be suspicious of anyone offering help. Card transactions While at a shop, keep an eye on the person swiping the card. If he swipes it on two different machines, there is something fishy. “If the merchant asks for the PIN, don’t give it away. Punch in the number yourself,” says Nayak. Register your e-mail ID and mobile number with the bank to get alerts whenever your card is used. Inform the bank when you get an alert for unathorised transactions. Online transactions Avoid using public computers for Net banking. “You must have the latest anti-virus, malware protection, personal firewalls, etc, enabled on your system,” says Sridhar. Phishing is a common trick. Don’t supply information to fraudsters camouflaged as banks. “We already have your account number, customer ID, telephone numbers and other details. So, don’t respond to mails that ask for this data,” says Vishal Salvi, senior VP and chief information security officer, HDFC Bank. It’s a good idea to use virtual cards while transacting on foreign Websites. “The actual credit card number is never used, so virtual cards are the most secure way to pay,” says Sridhar. Even if a fraudster gets hold of the card details, he won’t be able to re-use these as the validity is for a single transaction. Phone banking While mobile banking frauds are few, data theft can happen easily via this channel. If the phone is stolen, inform the bank and get the registered mobile number changed because banks use mobile phones as another layer of securing transactions by messaging a one-time password. Mumbai-based playback singer Vibha Dutt was going out of town, but her SIM was not working. The mobile service provider told her that she should collect it personally when she returned. By the time she returned, someone had collected the SIM and transferred 86,000 in eight instalments from her account. “I had used the Net banking facility on the mobile twice earlier,” says Dutt. Others Be careful about banking information leaked through wasteful photocopies. Sunil Thatte, 27, a financial services industry professional in Mumbai, landed in trouble due to the misuse of a discarded photocopy of his PAN card. He got a call from a Pune-based company asking why he had fraudulently transferred a cheque to his Axis Bank account in Pune. Thatte was surprised as he never had an account in Pune. Later, the police found that the fraudster had used his PAN card copy, changed the picture and created a benami account in his name. He then made a cheque in Sunil’s name, taking help from a company insider, and deposited it in the benami account to encash 2 lakh. “When someone is travelling by an airline and the ticket is booked using your credit card, a photocopy of the card is needed with the traveller. In such a case, strike out the CVV or CVC number from the back of the card,” says Mody. Discard cards and important documents properly. Cut the cards diagnolly so that the magnetic strip is destroyed. “Never throw your receipt in a public trash container. Avoid speaking out your account number if others are within hearing distance,” says a MasterCard spokesperson. Change the passwords and ATM PINs as soon as you get them.
10 Steps that can protect you from loss
1• Register for transaction alerts via SMS and e-mail.
2• If you change your mobile number, update it with the bank.
3• Reduce the limit on your credit card if you use it sparingly.
4• Use virtual cards for e-shopping.
5• Make use of the virtual keyboard wherever possible.
6 • Instead of going to the bank’s Website using links in e-mails, type the Web address directly.
7• Memorise the 3-digit CVV number at the back of the card and scratch it out.
8• Do not leave unwanted photocopies of essential documents at the photocopier.
9• If you lose your phone, deactivate all banking services linked to that number.
10. Place your Internet router away from doors and windows and switch it off when not in use.
- Khyati Dharamsi
Here’s how you can protect yourself against them......explains the article.
There is some good news in your inbox. Your wait for a tax refund is over. At least that is what the mail says: “The Reserve Bank of India takes full responsibility of your tax refund to your bank account. Please select your bank and complete the refund request.” All you have to do is open the link, key in your name, credit card number and code number at the back of the card, it says. Wait a minute... Tax refund from the RBI? Credit card details for a refund? If these questions didn’t crop up in your mind, you may have fallen victim to Net fraud. The RBI or the Income Tax Department never ask for your PIN, passwords or credit card details. So, the next time you see such a mail, delete it. Netizens regularly receive mails that tell them about jackpot prizes they have won and ask for bank or credit card details to transfer millions. “In the faceless, new era of banking, a customer’s identification is done through his user ID and password. This has brought new vulnerabilities as anybody who possesses these can transact on his behalf,” says RVS Sridhar, president, IT & RBO, Axis Bank. Common frauds The most common Net attacks are phishing (fraudulent e-mails) and vishing (fake voice messages and phone calls), data leaks while a card is inserted or swiped on a machine and copying of the personal identification number (PIN). Stealing information through counterfiet cards is also rampant. The data on the magnetic strip is electronically copied on to another card,while a surveillance camera observes the user’s PIN, and this is then used without the cardholder’s knowledge. ATMs are more vulnerable than other channels. Says Uttam Nayak, country manager, Visa: “ATMs have poor security at the location and some controls on other platforms are missing.” If you travel abroad frequently and use your credit or debit card, beware. An RBI report says that counterfeiting typically happens during international travel. Parampreet Kaur, 31, who works with an advertising agency in Delhi, had travelled to London in 2009 and shopped through her add-on card. A month after she returned, she got an SMS asking whether she had made transactions worth 2.82 lakh in Delhi. Realising that something was fishy she wrote to the foreign bank. “I was told that my card had been skimmed and eight transations were made on it,” she says. Even those who transact using cards on foreign Websites need to be careful. “Chances of fraudulent attack are higher on these as the 2-factor authentication mandated by the RBI is only for Web businesses in India,” says Bhavin Mody, senior product manager, ElectraCard Services. Steps taken by banks Banks are adopting measures to bring down fraud losses. Unusual transactions are immediately crosschecked with the customer. Card issuers are also moving away from the traditional magnetic strip-based cards to more sophisticated ones. ATM manufacturers are doing their bit by adding security features. A fraudulent device inhibitor makes it difficult for criminals to attach foreign devices on or around the card reader. “The machine has a screen which asks the consumer ‘Does your ATM card slot look like this?’ If it looks different than that in the picture, consumers are advised not to transact and inform the bank,” says Rakesh Aulaya, PR manager, South Asia Pacific, NCR, an ATM manufacturer. Soon, many machines won’t allow anyone else to use your card at the ATM. “Banks have started installing biometric ATMs. It is an effective way of preventing PIN theft,” adds Aulaya. Banks are also issuing one-time use passwords to customers. Preventive Measures ATMs While making transactions, watch out for suspicious looking devices around the machine. Block the view of the number pad with one hand while keying in the PIN. This may not be enough, though. “Criminals get better and better and may use small things which may lead to data leakages. There may be a fake keypad atop the number pad. So, be alert,” suggests Jelle Niemantsverdrie, principal consultant, forensics and investigative response, EMEA Verizon Business Security Solutions. If your card is stuck inside an ATM, be suspicious of anyone offering help. Card transactions While at a shop, keep an eye on the person swiping the card. If he swipes it on two different machines, there is something fishy. “If the merchant asks for the PIN, don’t give it away. Punch in the number yourself,” says Nayak. Register your e-mail ID and mobile number with the bank to get alerts whenever your card is used. Inform the bank when you get an alert for unathorised transactions. Online transactions Avoid using public computers for Net banking. “You must have the latest anti-virus, malware protection, personal firewalls, etc, enabled on your system,” says Sridhar. Phishing is a common trick. Don’t supply information to fraudsters camouflaged as banks. “We already have your account number, customer ID, telephone numbers and other details. So, don’t respond to mails that ask for this data,” says Vishal Salvi, senior VP and chief information security officer, HDFC Bank. It’s a good idea to use virtual cards while transacting on foreign Websites. “The actual credit card number is never used, so virtual cards are the most secure way to pay,” says Sridhar. Even if a fraudster gets hold of the card details, he won’t be able to re-use these as the validity is for a single transaction. Phone banking While mobile banking frauds are few, data theft can happen easily via this channel. If the phone is stolen, inform the bank and get the registered mobile number changed because banks use mobile phones as another layer of securing transactions by messaging a one-time password. Mumbai-based playback singer Vibha Dutt was going out of town, but her SIM was not working. The mobile service provider told her that she should collect it personally when she returned. By the time she returned, someone had collected the SIM and transferred 86,000 in eight instalments from her account. “I had used the Net banking facility on the mobile twice earlier,” says Dutt. Others Be careful about banking information leaked through wasteful photocopies. Sunil Thatte, 27, a financial services industry professional in Mumbai, landed in trouble due to the misuse of a discarded photocopy of his PAN card. He got a call from a Pune-based company asking why he had fraudulently transferred a cheque to his Axis Bank account in Pune. Thatte was surprised as he never had an account in Pune. Later, the police found that the fraudster had used his PAN card copy, changed the picture and created a benami account in his name. He then made a cheque in Sunil’s name, taking help from a company insider, and deposited it in the benami account to encash 2 lakh. “When someone is travelling by an airline and the ticket is booked using your credit card, a photocopy of the card is needed with the traveller. In such a case, strike out the CVV or CVC number from the back of the card,” says Mody. Discard cards and important documents properly. Cut the cards diagnolly so that the magnetic strip is destroyed. “Never throw your receipt in a public trash container. Avoid speaking out your account number if others are within hearing distance,” says a MasterCard spokesperson. Change the passwords and ATM PINs as soon as you get them.
10 Steps that can protect you from loss
1• Register for transaction alerts via SMS and e-mail.
2• If you change your mobile number, update it with the bank.
3• Reduce the limit on your credit card if you use it sparingly.
4• Use virtual cards for e-shopping.
5• Make use of the virtual keyboard wherever possible.
6 • Instead of going to the bank’s Website using links in e-mails, type the Web address directly.
7• Memorise the 3-digit CVV number at the back of the card and scratch it out.
8• Do not leave unwanted photocopies of essential documents at the photocopier.
9• If you lose your phone, deactivate all banking services linked to that number.
10. Place your Internet router away from doors and windows and switch it off when not in use.
- Khyati Dharamsi
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