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Common types of online frauds and how to avoid them

Common types of online frauds and how to avoid them
Authored by Rajeev Yadav
The festive season is the time of excitement and adrenalin, entertainment and celebrations, gifting shopping and gifting et al, it is also the time when we become less mindful of how much and how we spend our monies. Remember, as the transaction count and sources go up, so does the risk of fraud.
In the festival season, online frauds are nothing new and more so given the current pandemic situation, online or digital payments are more of the norm, and unsuspecting people are prone to falling prey to fraudsters who are waiting for such opportunities.
So, how do you cut your exposure and minimize the risk of getting defrauded online? Here, we elaborate on some of the most common types of frauds and caution people against such tricks.
Here are some of the distinctive banking frauds:
The QR Code way
One of the most common strategies for redirecting cash is by using a QR code. Fraudsters send a QR code to cell phones hoping for someone to click on the link. Once the link is clicked inadvertently, the hackers scan the QR code from a cell phone and pull out cash from the ledger of the clueless client.
The UPI linkway
A great many people across a spectrum of socio-economic classes have turned to UPI transactions and that is healthy for building a less-cash economy. However, becoming aware of the pitfalls involved is essential for the sustenance of this mode of payment. In spite of the fact that this is the safest way of doing money transactions, fraudsters are using this mode as well to dupe individuals.
Through UPI, a hacker sends a debit link, camouflaged as a credit link, to an individual, and once the link is clicked, and the PIN entered, the money gets debited from the hapless customer’s account.
Tip: DO not tap on any obscure link to avoid falling prey to such frauds.
Card skimming and Cloning
An innocent call to check service levels of an account or a debit or credit card is sometimes all it takes for a scammer to attempt to extract confidential information from a cardholder.
Once the data is in their hands, one can easily create a clone with all the regular details. So, extreme care is required when someone calls to ask for important personal information related to your card.
Like Card skimming, fraudsters have another approach i.e. by way of duplication. In this, after taking all the data from the card, a duplicate card is made which is then used to withdraw money from the account of the original cardholder.
Fake calls
Fraudsters may also make fake calls by posing as officials from a specific bank and ask for bank details so as to help you urgently transfer funds in order to avoid fraud. In a moment of panic or indecision, one may end -up falling for the trick. These days, counterfeit calls are being made through WhatsApp as well, where the fraudster requests for an online transfer to be made.
Sometimes, the obvious is not so obvious after all! It is important to mentally prepare yourself and the required action in case you receive such a call – call your Relationship Manager or the Call Center of your bank and on a regular basis, check all your bank accounts for any transactions not done by you.
After accepting such a call from an obscure number, quickly block the number.
While it is the responsibility of your bank to keep your money safe, a customer plays a significant role in helping their bank help them enjoy a fraud-free banking experience. Banks have a fairly high level of safety and security features in their application and processes.
Also, a bank shall never ask for confidential information related to accounts or cards. So, when such a call is received, beware! Just a few easy steps and you can improve the safety of your online transactions considerably and protect yourself from banking frauds.
Rajeev Yadav is MD & CEO at Fincare Small Finance Bank

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