Risk of counterfeiting of electronic money in e-banking

This paper analyzed the bankers’ viewpoint towards the factors responsible for risk of counterfeiting of electronic money in e-banking, its potential impacts and the measures initiated by selected banks in India for overcoming such risk. A sample of 107, 104 and 100 respondents (bank employees) is taken for data collection from the different branches located in Haryana, Punjab, Chandigarh and Delhi from selected public, private and foreign banks respectively. Statistical techniques such as mean, mode, standard deviation have been used for the analysis of data. ANOVA technique has been applied to arrive at the conclusion. The analysis shows that the alteration of electronic money products by criminals to obtain goods or funds without proper payment is found as the most important factor leading to the risk of counterfeiting of electronic money followed by creation of electronic money products by criminals to obtain goods or funds without proper payment in the selected banks. Further, liability of the bank for the amount of the falsified electronic money is found as the most potential impact on these banks followed by the possible costs associated with repairing a compromised system. However, monitoring and tracing individual transactions is found as the top most adopting measure followed by developing the audit trails and on-line interaction with the issuer or central operator to overcome the risk of counterfeiting of electronic money in the selected banks.