Fraudsters are ready to take advantage of their targets’ inexperience and vulnerabilities. The current explosion of technologies, ranging from mobile phones and tablets to web-connected devices, has exposed us all to new dangers.
The Reserve Bank of India (RBI) issued a new warning to banking customers the other week. In reality, specific scams have become more common than others, and several have more than quadrupled in frequency during this pandemic.
However, by just adhering to a few good judgement guidelines, and always consulting with your financial advisor you may significantly decrease your exposure and chance of being pulled in by these con artists.
Identity Theft
Identity theft happens when someone obtains your personal details, which can include your surname, Address And phone number, bank account details, and payment information. This is commonly accomplished through data mining.
The criminals’ objective is to exploit your private information to impersonate you in order to access your savings account and deplete funds, create and use credit and debit cards in your identity, obtain credit, utilise your medical insurance to cover medical costs, etc.
What you must do:
Mass Marketing Fraud
The exploitation of misleading promises of financial compensation, services, products, or charitable works in consideration for fees, contributions, or sales is referred to as mass marketing fraud.
This offence can be done by email, telephone, internet, tv ads or tv commercials, or any other form of mass or personal communication. In many situations, these infractions are linked to different types of fraud.
The majority of the scams, such as the phoney check, international lottery, or secret shopper scams, operate on an advance-fee basis, in which the selected victim is tempted to submit money early in expectation of a far higher reward, possibility, or profit which is never fulfilled.
Always consult with an advisor for your financial portfolio management.
What you must do:
Romance scam
Fraudsters contact individuals via social networking or dating websites and develop a romantic connection with them over time – occasionally months.
After gaining the victim’s confidence, they will proceed to ask for money, usually for an acute personal or medical problem.
Quite often, the perpetrator pretends to be from a distant nation and that he or she needs the money to go to see the targeted victims in person.
What you must do:
Contact the customer care of social networking or dating sites that you have been using and inform them about the situation.
Card theft
This happens when a financial institution provides a customer with a new or replacement card, but it gets stolen along the journey. If the mail is not securely managed upon delivery, it is more likely to occur in communal residences (such as an apartment block or a shared accommodation).
The PIN code must be sent in a separate statement if the card is new, but this will not prevent a fraudster from using the card for contactless or digital payments. Card theft is more difficult to detect since the targeted individual may not realise the card was initially stolen.
What you must do:
Scams on mobile applications
Authorised Push Payment (APP) scams encompass any fraud in which the target must voluntarily elect to withdraw money from their account. It’s a typical approach in various sorts of financial fraud, but it may also be done over the phone or in person.
Typically, the fraudster will notify the victim of a change in their accounts and request them to verify their passwords, PIN, or even other sensitive data in order to establish their identity.
APP scams are a type of financial fraud that is more difficult to come back from.
Financial institutions frequently refuse to immediately repay any losses incurred if they feel the victim gave it out deliberately or was careless with their credentials.
What you must do:
Conclusion
It’s easy to feel like you’re a sitting target ready for these sorts of scams to strike. Instead of being reactive, be proactive!
If you read and understand the different types of scams and frauds that fraudsters have employed, you might not become their next target.
