CIBIL brings repository to spot fraudsters
Sources : Times News Network
Date of Publishing:09/07/2010
Pune: Credit Information Bureau India Limited (CIBIL) has announced CIBIL Detect — a nationwide database of reported fraudulent and suspect activities. The service will address the need for better collaboration and the sharing of information on fraud and highrisk activities throughout the banking and financial industry.
CIBIL Detect is the first, centralized repository in India on confirmed frauds, cases of misuse or attempted misuse of data and suspected or high-risk cases that are under investigation in banks and financial institutions.
The repository also contains valuable information on high-risk vendors and agents which credit grantors can share and access. "It will be a comprehensive, reliable, up-todate, centralized point of reference on the high-risk incidents in the credit sector for India. It will also keep a track of the modus operandi of individuals who have committed banking-related frauds in the past," a CIBIL statement said.
Arun Thukral, managing director, CIBIL said, "Banks and financial institutions have been reporting rise in cases of frauds and spurious incidences. Realizing the urgent requirement of an industrywide system for fraud control, the Indian Banks’ Association (IBA) entrusted CIBIL and TransUnion to develop an exhaustive repository of information on spurious activities that will not only capture the methods used to commit fraud, but can also indicate whether the person or organization was a victim of fraud or was involved in it." Currently the CIBIL Detect database comprises of over 60,000 instances of frauds and high risk activities, Thukral added.
Deputy chief executive, Indian Banks’ Association (IBA) said, "Increasing number of frauds in banks in recent years is a matter of great concern. Anywhere, anytime banking facilities make it easier for fraudsters to remain faceless and siphon funds out of the system much faster than ever. As fraudsters move from one bank to another to avoid detection, we had thought of creating a data base on frauds to serve as due diligence tool for banks before establishing business relationship with new customers. As more and more banks start reporting fraud data to CIBIL, the data base would become larger and more useful to the banking system."
CIBIL Detect has been designed to help at both an organizational as well as an industry level. At an organizational level, it will act as a comprehensive nationwide repository that can be used to check if the business prospect has been involved in any spurious activity. On an industry level, CIBIL Detect will fuel the regulatory body’s efforts towards creating a healthy and sound credit culture by effectively identifying, recording and sharing information on high-risk activities, the statement noted.
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