Financial Fraud: Digital fraud affects individuals in many ways, but some groups are more vulnerable due to different levels of awareness, access to resources, or online habits. Senior citizens who are less knowledgeable about technology are vulnerable to scams like phishing and fake calls claiming to be from banks or government institutions.
A Bengaluru man was allegedly duped by someone posing as a bank representative. The caller claimed that he was eligible to get a free smartphone as a reward for credit card points. The man found a phone with the bank’s logo and instructions to insert the SIM card into it. One day, on his way to the bank, he finds out that Rs 2.8 crore has been withdrawn from the fixed deposits. The investigation revealed that the phone contained malicious software that allowed scammers to change the mobile number linked to his bank and withdraw money.
This phenomenon is one of many methods used by fraudsters to swindle people. With the increase in financial transactions, digital fraud has become increasingly common. There are many reports of people losing money despite being aware of financial scams. Recognizing this, the government has taken steps to educate people about the risks of digital transactions.
1. Who Are The Potential Targets Of Fraudsters?
Digital fraud affects individuals in many ways, but some groups are more vulnerable due to different levels of awareness, access to resources, or online habits. Senior citizens with limited exposure to technology are vulnerable to scams such as phishing and fake calls claiming to be from banks or government institutions. Teenagers risk being lured into fake online stores, fraudulent video calls, and gaming scams due to limited financial literacy.
Often people shopping online or using multiple apps are more vulnerable due to their widespread online presence. Personal information leaked through data breaches is often sold on the dark web, exposing victims to targeted attacks. As scammers become more sophisticated using methods such as phishing, malware, and identity theft, it becomes important to understand potential risks and take proactive measures.
BankBazaar’s report entitled Fear, Fraud and Finance: 6 Ways Scammers Dominate Your Mind and How You Can Protect Yourself highlights the psychological tactics that scammers use to manipulate unsuspecting individuals. To protect yourself from digital fraud, you can:-
2. Identify phishing scams
Fishing scams involve stealing personal information. Fraudsters send fake emails or messages that come from trusted sources such as banks, internet providers or lending companies. These fake communications often lead victims to fraudulent websites designed to steal sensitive data, such as passwords or bank details.
How to stay safe: Verify the sender’s email address or message source. Avoid clicking on suspicious links and always visit the official website directly for transactions or inquiries. Call the bank to confirm any suspicious communication and do not panic with an urgent call. Take time to think before taking action.
3. Protect your devices and networks
Unsecured devices are vulnerable to hackers, who may gain unauthorized access to your accounts. Weak passwords, outdated software, and insecure Wi-Fi networks are common risks.
How to stay safe: Use strong, unique passwords and enable two-factor authentication. Update your software regularly and use secure, password-protected Wi-Fi networks.
4. Beware of fake apps and websites
Fraudsters create fake apps or websites that copy real apps to trick users into entering personal or financial information.
How to stay safe: Download apps only from official app stores and verified websites. “Check for secure URLs starting with https” and be wary of websites with subtle changes, such as an extra letter or misspelled names. Always confirm the payment gateway before entering your information.
5. Assess your financial accounts regularly
Monitoring your financial accounts helps in early detection of unauthorized transactions. Fraudulent activities are often ignored until a major loss is incurred.
6. How to stay safe
Review bank statements and credit card activity regularly. Set transaction alerts to stay informed about unusual activity.
7. Educate yourself and stay updated
Cheaters constantly change their tactics to trick people. Lack of awareness makes people more vulnerable.
How to stay safe: Keep abreast of the latest fraud schemes by following reliable financial news sources. Keep yourself updated on ways to keep your money digitally safe. Financial fraud is a growing concern, but with vigilance and proactive measures you can protect your money. Keeping your device secure and informed can significantly reduce the risk of becoming a victim of financial fraud.
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