Be Alert, you may be a victim of financial scam!!!

As your financial friend, it is our primary responsibility to protect your hard-earned money. Nowadays, many frauds are happening around us, and it’s possible that we could fall into these traps. So, we are writing this article to help you protect your wealth and identify potential frauds.

Our Information is Being Exposed: Yes, you heard right. Some of our sensitive information is now available on the internet or with fraudsters through different mediums. Once our data is with fraudsters or internet, it can circulate around the world, increasing the risk of fraud.

How many Scams Are Happening in India?

• According to the RBI, digital payment frauds in India increased fivefold to 14.57 billion rupees (1,457 crore) by the end of March 2024, compared to last year.
• The RBI also reported that bank frauds exceeded 302.5 billion rupees (30,250 crore) in the fiscal year 2023.
• The Ministry of Finance stated that UPI fraud cases exceeded 95,000 in the fiscal year 2022-2023, up from 84,000 cases reported in 2021-2022.
• These figures highlight the significant amount of fraud happening in India, underscoring the importance of being cautious rather than scared.

How are scams happening with us?

• We often share our own information unknowingly or subconsciously through different mediums. It is also possible that our information is being stolen from various sources. Some organizations sell our information to fraudsters. While not all organizations engage in illegal activities, a few do.
• Nowadays, data leakage/breach is a significant problem, occurring through hacking or technical errors. If this issue arises from sources like banks, social media, or government agencies, it can lead to critical consequences and financial losses.
• Searching the internet reveals many such issues like data leaks and breaches. Be aware that some agents or organizations sell users’ sensitive information to third-party companies, increasing the possibility of fraud.
  

Above points emphasize the need for vigilance and careful handling of personal information to protect against potential scams.

How are we sharing our information unknowingly?
To answer this, I am giving you an example. Suppose you go to a shopping mall, and, after shopping, you provide your mobile number or fill out a form at the billing counter for some credit points or discounts. These phone numbers and information can be sold to marketing agencies and may also be exposed to fraudsters. Once our data is exposed, there is a risk of being scammed.

Another common scenario is when we log in to an untrusted website or online form, we share our information, which also poses a risk of being scammed.

Frankly speaking, nowadays, if we share our information on the internet, there is a possibility of being hacked, exposed, cheated, or scammed. We should be careful before sharing any information about ourselves through any medium. In fact, we should avoid sharing unless it is absolutely necessary. Remember, our data is more valuable than anything.

Be cautious and protect your personal information to avoid falling into fraud traps. This is the first step towards protecting yourself from frauds.

Increasing frauds using AI:
The 21st century is the era of AI. While AI helps us in many ways, it also contributes to increasing scams through deepfake videos, fake calls, and other methods.

Nowadays, people are receiving many fake video or voice calls leveraging AI. People receive fake calls pretending to be from relatives or friends asking for money. It is very difficult to judge this situation, especially during emergencies when we want to help our loved ones. Some fraudsters are leveraging this method to cheat people and steal money.

So be aware of these frauds. This kind of issue will likely increase in future using AI, so be alert and manage your finances safely.

Increasing Frauds through social media:
Social media is a common medium for fraudsters to cheat people. As social media users are increasing, fraudsters targeting them more frequently. Fraudsters can scam you in many ways, including:

• Sending URL (links) and asking you to click to get money.
• Online dating scams
• Sending friend requests and creating scenarios to seek money.
• Showing lucrative job offers.
• Online lottery scams.
• Get-rich-quick schemes through investment in crypto or stocks.

This list is not limited to above, there can be many possible ways to do scam, so always be alert and aware.

How to protect yourself from Fraud:

• Be financially literate.
• Don’t share any information unless it is secure and mandatory.
• Regularly check your bank transactions.
• Don’t pay job consultants, If a job consultant asks for money, they are likely frauds. Do thorough research before paying.
• Don’t invest in Ponzi schemes.
• Don’t invest in get-rich-quick schemes. There is no shortcut to getting rich quickly.
• If you get any unknown calls/emails related to financial investments, research thoroughly and discuss with family/friends/advisors before deciding.
• Pay through authorized payment modes only and double-check before making any payment.
• Avoid making payments through unsecured public networks as your information can be hacked.
• If you receive a suspected email (phishing mail), don’t open it or share any information.
• Never share your financial transaction OTPs with anyone. If possible, always use 2FA authentication.
• Use secure payment modes only, not through any unauthorized online links.
• If you feel your credit/debit card has been used without your knowledge, immediately block it.
• If your credit or debit card is lost, immediately block it.

How to identify the fraud?

• If something seems unusual and very lucrative.
• If anybody or an organization offers you very attractive deals.
• If anyone offers you huge money for little or without any effort.
• If someone contacts you on social media offering a job or money without any prior application.

There can be many possible ways to do scam, so if something unusual or unexpected happens, be alert and use your common sense.

What RBI says about financial frauds?

• Cyber frauds happen quickly. Do not share your personal information such as card details, bank details, Aadhaar number, and PAN details.
• Be wise and do not share your KYC details with anyone over the phone. Disconnect the call if you are asked for card details, bank account numbers, or even personal details.
• Do not click on unknown links. Fraudsters can access your personal information through links sent via SMS, email, or WhatsApp.
• Clicking on unauthorized links that appear identical to your bank’s URL may result in money being debited from your UPI-linked bank account.
• Never respond to “Request Money” options from unknown sources.
• “Collect requests” in UPI do not require a PIN. One click on an unknown link may result in losing money instantly from your bank account.
• Fraudsters may not ask you to transfer money directly but clicking on a “Request Money” or other such email and SMS links may result in losing your money.
• Do not download any unauthorized apps from the internet onto your laptop or mobile. These unauthorized apps may give remote access of your laptop or mobile phone to fraudsters.

What are steps to take legal actions in case of financial fraud?

• Register a police complaint/FIR.
• Inform to respective/related authority. For Example, if  fraud is through banking transaction you can inform to bank immediately
• Reserve Bank of India – Master Directions (rbi.org.in) (Home > Notifications > master directions > Chapter VI and Chapter VII)
• If it is a cyber-crime, then you can report this online immediately through this link: https://cybercrime.gov.in/Webform/Accept.aspx (Register a complaint)
• You can also call to “1930 “for cyber-crime (https://i4c.mha.gov.in/structure.aspx)
• Indian – Computer Emergency Response Team (cert-in.org.in)

Conclusion:
There are many ways fraudsters can scam us. As we become more technologically advanced, scams are increasing in different forms. Cybercrimes are rising rapidly, and people are receiving many calls from scammers. If we are even slightly careless, we risk losing our wealth. Therefore, it is essential to use your common sense and conduct thorough research before making any financial decisions.