PREVENTIVE VIGILANCE IN ELECTRONIC BANKING 

Preventive vigilance in electronic banking refers to the proactive measures taken by banks and financial institutions to prevent fraudulent activities in electronic transactions. With the rapid growth of electronic banking, there has been a corresponding increase in the number of electronic banking fraud cases. Preventive vigilance aims to minimize such cases and maintain the integrity and security of the banking system.

Here are some of the ways in which preventive vigilance is practiced in electronic banking:

1. User authentication: Banks use various forms of authentication such as passwords, PINs, and biometrics to verify the identity of users accessing electronic banking services.
2. Encryption: Banks use encryption techniques to ensure that sensitive information such as account numbers and passwords are protected during transmission.
3. Monitoring of transactions: Banks use advanced software and systems to monitor transactions for suspicious activity. Any unusual activity is flagged and investigated.
4. Training of employees: Banks provide regular training to employees on the best practices in electronic banking and ways to prevent fraud.
5. Two-factor authentication: Some banks use two-factor authentication, where a user is required to provide two forms of identification before accessing electronic banking services. This provides an added layer of security.
6. Regular security audits: Banks conduct regular security audits to ensure that their systems are secure and up-to-date with the latest security patches.
7. Limiting transaction amounts: Banks may limit the amount that can be transferred in a single transaction to minimize the impact of any fraudulent activity.

Overall, preventive vigilance in electronic banking is crucial to maintaining the security and trust in the banking system. By adopting these measures, banks can protect their customers and minimize the risk of fraudulent activities in electronic transactions.

Some of the key preventive vigilance measures in electronic banking include:

1. Two-factor authentication: This is a security measure that requires customers to provide two forms of identification before accessing their accounts. For example, customers may be required to enter a password and a one-time code sent to their mobile phone.
2. Encryption: Electronic banking transactions should be encrypted to protect the confidentiality of customer data. This involves encoding the data so that it cannot be read by unauthorized parties.
3. Fraud detection: Banks should have systems in place to detect and prevent fraudulent transactions. This may include monitoring for unusual activity, flagging suspicious transactions, and investigating any potential fraud.
4. Regular security updates: Banks should regularly update their software and security protocols to stay ahead of new threats and vulnerabilities.
5. Customer education: Banks should educate their customers about the risks associated with electronic banking and how to protect themselves. This may include providing tips on creating strong passwords, avoiding phishing scams, and using secure networks.