homepersonal finance NewsFixed Deposit fraud: How to stay protected

Fixed Deposit fraud: How to stay protected

Fixed Deposit fraud: How to stay protected
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By CNBCTV18.com Contributor Sept 1, 2022 4:47:58 PM IST (Published)

Fixed Deposit frauds are becoming common these days as cybercriminals trick the gullible to share vital information. Here's a list of do's and don'ts to help prevent falling into fixed deposit fraud.

Cybercriminals have intensified their activity to commit fraud as a result of digitalisation. Today, we must be vigilant against them as such fraudsters have been targeting consumers on the internet for a long time in order to undertake illicit activities. Customers must be aware of all the facts gathered while booking an FD. Almost all banks and NBFCs offer websites where consumers may check all their FD information and execute transactions. It is vital to note, however, that:

  1. Customers should not disclose their portal login credentials to anybody:
  2. This information could be used to undertake fraudulent activities if it falls into the wrong hands. To avoid a situation like this from occurring, make sure you keep an eye on your portal and track every transaction.
  3. Double-check that you've entered the correct information: The applicant's registered mobile number is used to send OTPs. As a result, it is critical that you supply your bank or NBFC with accurate contact information. If you provide the incorrect phone number, a third party will have access to your OTP and FD portal. Fraudulent transactions may result because of this. Furthermore, you must guarantee that the instruments used to book FDs, such as cheques, are issued in the financier's name with account payee marking.
  4. If your bank account number changes (and your FD liquidation value is transferred), notify your bank/NBFC immediately: This is a crucial consideration to keep in mind. If the bank is not notified of a change in bank account number, your funds may be moved to the incorrect account, resulting in the loss of your hard-earned funds.
  5. Never answer unsolicited calls, especially if they claim to be from one's bank, and never disclose important information over the phone: Always be wary of phishing attempts involving FD. To do so, avoid responding to strange e-mails, calls, or messages requesting your FD account number or other personal information.
  6. What can you do to stay safe?
    • Always supply accurate nomination information in the designated nominee areas
    • In the contact information box, make sure you provide your active or current phone number and e-mail address
    • Always book direct FDs through the bank/NBFC portal or pay with a cheque made payable to the bank/NBFC
    • If a request comes in from the branch, double-check that the information on the request form is correct. Also, before submitting your documents to the bank/NBFC official, be sure that they are genuine
    • Don’ts-
      • For any KYC change requests or financial transactions, do not disclose your OTP with any third-party
      • Never give your handset/mobile to a third party for financial transactions or KYC changes
      • Do not issue blank/self-cheques for FD bookings, and always include "bank/NBFC" in the account payee field
      • Never give out your banking, EMI, or credit card information to a third party. Telemarketers frequently claim to be from any NBFC or bank. It is, nevertheless, critical to be aware of such scam calls and to avoid them at all costs
      • Do not pay any advance fee or any amount in cash or digital payment to individuals posing as bank/NBFC representatives for FD booking
      • Customers must not share their personal or financial information with anyone. The only method to distinguish between fake and legitimate agents is to remember that no representative will ever ask for personal information like a password, OTP, CVV, or Card number over the phone, via e-mail, or in any other way.
        If your bank account has been debited unexpectedly and a 'bank official' calls to remedy the problem, always verify the caller before responding or taking any action. If you suspect you have been a victim of a fixed deposit fraud, file an FIR with the local police and notify your bank or NBFC partner.
        —The author, Fakhari Sarjan, Chief Risk Officer, Bajaj Finance Ltd. Views expressed are personal
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