From credit cards to mobile wallets and everything in between, digital payments are a convenient and increasingly popular option for consumers. The growth of digital payment platforms and apps in recent years has significantly reduced people's reliance on cash. People can utilise these digital technologies to make payments in a matter of seconds with only a few clicks on a computer screen or mobile phone.
However, simplifying processes and convenience has drawbacks, such as consumer privacy and cash-flow issues. Also, the rise in digital payments has increased cybercrime. Even minor negligence might result in you becoming a victim of cyber fraud. Some of the typical digital payment frauds that customers should be aware of while making payments online are:
Fake loan offers
In this type of fraud, scammers offer unbelievably low interest rates, pay little attention to your credit history and pressure you to accept the loan by saying that the offer is only valid for a short time. They collect loan processing fees in advance to get the loan disbursed but stop attending to calls once customers stop paying them as per their demands. They also attempt to build trust with the victims by citing the names of reputable banks and financial institutions before asking you to accept the offer. Scammers are known to use e-mail addresses, false domain names or websites that appear similar to or identical to reputable NBFCs to trick people into taking out loans.
These are some classic warning signs of a bogus loan offer, so be on the watch for them.
Update KYC scam
Since KYC is now required for online wallets, scammers have found new ways to defraud users of their money. You might receive a text message with a link directing you to update your KYC. The link asks for your account information/ credit card details and OTP. However, money is siphoned off from your account/ credit card as soon as you submit the information. Always rely on official notices from bank offices or websites rather than texts as they are more reliable.
Insurance frauds
In this, fraudsters trap unsuspecting consumers who can't tell the difference between the real insurance regulators' websites and fake ones. They pose as representatives from well-known financial organisations and win customers' trust with an offer to get a loan from a financial institution (if the customer takes insurance from them.) Your awareness becomes essential at this point. Always check if the website you're working on is safe and begins with "HTTPS" rather than just "HTTP." Additionally, you should verify the website's physical address, e-mail address (which should be legitimate), and phone number.
Phishing
In this mode of fraud, you get an e-mail that appears to be from a reliable company and contains links or attachments you can download. This is a fairly popular method of stealing data because clicking on the link or downloading a file would allow the scammer access to your device and data.
There are several easy-to-follow guidelines that you should go by to prevent being defrauded or scammed online. Verifying every detail, avoiding communicating sensitive information via call, mail, text or WhatsApp, conducting a background check on your agents, being aware of the precise steps involved in applying for loans and insurance, and getting approval are just a few things to bear in mind. You can only protect yourself from these fraudsters and their malicious activities if you remain vigilant during digital transactions.
Anyone who has fallen victim to a digital scam should report any suspicious events and/or instances of money being stolen due to these fraudulent acts and practices to the relevant authorities, such as the police, including the Cyber Crime Cell, and the telecom regulator. Complaints related to cybercrime should be reported only at National Cyber Crime Reporting Portal or by calling the helpline at 1930 as soon as one identifies a cyber fraud.
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