CVC warns banks of frauds, seeks secrecy of passwords

Concerned over large-scale frauds, the Central Vigilance Commission (CVC) has directed all chief vigilance officers (CVO) of banks to maintain confidentiality of their passwords. CVC has asked all CVOs to deal “ruthlessly” with people found to be careless and advised necessary action.

“It has been observed by the Commission that bank employees in certain cases are still not keeping secrecy of their passwords. Instances are still coming to the notice of the Commission where frauds of large amounts have been committed by misusing the passwords of employees,” CVC said in a recent circular.

The commission said it had to be ensured that all employees kept their passwords secret and changed them frequently. The banks may evolve systems and procedures to ensure the same.

 

“Instances of casual approach by any password holder should be dealt with ruthlessly by the bank concerned and as the same may put huge funds at risk,” the anti-corruption watchdog said. The Commission asked the officers to regularly monitor the issue and report compliance on a monthly basis. Each bank issues passwords separately to its employees to ensure safe and trouble-free working. Interestingly, CVC noticed two cases of impersonation and sent a warning cum caution letter to all the organisations concerned.

A person claiming himself to be K V R Reddy, IRS, Additional Commissioner (South), CVC, visited the office of CVO, Union bank of India, Mumbai, attempting to get details of some accounts pertaining to Hyderabad.