In the fiscal year 2023, bank frauds in India reached over 302.5 billion rupees, indicating a concerning trend despite a slight decline from previous years. As digital transactions become more prevalent, financial scams are evolving and posing significant risks to consumers. It’s crucial to understand the types of frauds and how to protect yourself.
Financial Scams Landscape:
2023 witnessed a surge in sophisticated financial scams exploiting evolving technologies. From UPI-related frauds to investment scams, QR code deceptions, and part-time job schemes, fraudsters are employing diverse tactics to defraud unsuspecting individuals.
UPI Scam Update:
UPI-related frauds have become rampant, with perpetrators disguising collect requests as cashback offers and luring victims into fraudulent transactions. The Ministry of Finance reported over 95,000 UPI fraud cases in 2022–2023, highlighting the prevalence and impact of such scams.
Digital Banking and Credit Card Frauds:
Online banking and credit card frauds are on the rise, with phishing attacks, identity theft, and fraudulent transactions posing significant risks to consumers. The banking system recorded over 13,530 fraud cases in 2023, emphasizing the need for heightened vigilance in digital transactions.
Bank Frauds Overview:
Bank frauds encompass a range of deceptive activities, including loan frauds, cheque frauds, and unauthorized transactions, resulting in substantial financial losses. Despite a decrease in reported cases, Indian banks detected over 65,000 frauds between June 2014 and March 2023, highlighting the persistent threat.
QR Code Scam Alert:
QR code scams are increasingly prevalent, with fraudsters exploiting unsuspecting victims by luring them into scanning fraudulent QR codes. Bengaluru alone witnessed over 41% of reported cybercrime incidents attributed to QR code scams, underscoring the growing threat.
Investment Scam Warning:
Investment scams promising unrealistic returns continue to target individuals seeking lucrative opportunities. The exposure of a massive Chinese investment fraud in Hyderabad, amounting to INR 712 crores, serves as a stark reminder of the risks associated with fraudulent investment schemes.
Part-time Job Scam Alert:
Online scammers are leveraging social media to deceive individuals with promises of easy part-time work. The Delhi police reported a significant increase in complaints related to internet fraudsters advertising part-time jobs, emphasizing the need for caution.
Courier Scam Advisory:
A new courier scam targeting young individuals has emerged, with fraudsters claiming to send parcels containing illegal items in victims’ names. Bengaluru Police recorded over 163 instances of such scams in 2023, urging residents to verify communications from courier services.
Malware Warning:
Fraudsters are employing deceptive tactics to install malware on victims’ devices, compromising their financial information. Tech support scams have become pervasive, with 7 out of 10 consumers falling victim to such schemes, highlighting the need for cybersecurity measures.
Protect Yourself Against Financial Frauds:
Take proactive steps to safeguard your finances, including educating yourself about common scams, verifying identities, using strong passwords and 2FA, and reporting suspicious activity promptly. Stay informed, exercise caution, and seek legal advice if you suspect you’ve encountered a financial scam.
What to Do When Stuck in a Fraud:
In case of encountering a financial fraud, contact your bank, lodge a complaint with the National Cyber Crime Reporting Portal, and report the incident to local law enforcement. Provide documentation, monitor your accounts, and contact regulatory bodies if necessary.
Stay vigilant, stay informed, and protect yourself against financial frauds in India. Your financial security is paramount, and taking proactive measures can help mitigate the risks associated with evolving fraud tactics.
Source: Forbes Advisor