Online frauds or digital frauds are a problem to be tackled as soon as possible. With the passing of time, the fraudsters seem to be getting cleverer and are well aware of the traps set for them.
2020 is a year that has seen a tremendous increase in digital crime; this is largely due to the chaos of the pandemic. The pandemic has got everything turned upside down and this has led the people to become more vulnerable and gullible.
Here are some of the most common frauds you come across.
Online Shopping Frauds
Online shopping fraud has been one of the most often committed frauds since the past few years. This seems to have gained momentum from the time of the pandemic, when you could only shop online. The fraudsters set up fake portals and plan how to cheat people of their earnings.
Attractive products are displayed on a fake website. After the payment is made, you either get a sub-standard product or do not receive anything at all. Most of these websites do not have any refund or return policy and there is no customer support team you can contact.
The solution to this problem is to ensure you only shop on well reputed websites, like Amazon, Flipkart, e-bay and so on. You also need to go through the reviews top get a clear picture. Avoid websites that need too much of your personal information.
Online Banking Frauds
Cyber-criminal find this online banking frauds most lucrative. These are
- Stolen credit or debit cards
- Phishing or getting personal information from the customers
- Stolen passwords or PIN Numbers
- Cloning of Credit or Debit cards
- Hacked mobile apps or accounts
- Stolen OTP or CVV number
Solution to Online Banking Frauds
It is important to make additional effort to ensure safety and security against online banking frauds. Listed below are some tips to help you out with this.
- a) Make sure you reset your password periodically. This can be every two months or so. This can save you hackers ad can also bring down the risk of banking frauds.
- b) Never ever use a public computer, especially for any online banking activities. The fraudsters have ways and means to hack this and get all your banking information.
- c) In case you misplace your credit or debit card, the bank needs to be notified on an immediate basis. The bank then blocks your card and no fraudulent transactions can be carried out.
- d) Try not opening unfamiliar mails that seem to be suspicious. The hacker can get access to your account once you open the mail or click on any link.
- e) You need to be aware that any bank will never ask you for any OTP or other details on the phone. In case you receive a call asking for your PIN or some OTP, put down the phone and make a call to your bank and inform.
Credit Card Fraud
The fraudulent use of any credit card by getting the personal details of the card holder is a credit card fraud. Present times have seen the scammers using your credit card even without having the physical card with them.
Types of Credit Card Frauds
There are five main types of credit card frauds.
- Skimming and Counterfeit fraud
- CNP (Card Not Present) fraud
- Lost and Stolen Card fraud
- False Application fraud
- Card-never arrived fraud
Phishing and malware attacks are getting more sophisticated with each passing day. Unsolicited text messages or e-mails from people you do not know need to be treated with suspicion. Make sure you do not click on any link provided and part with any confidential data like your password or PIN.
Using ATM Machines
- Before making use of any ATM machine, have a look around and make sure this has not been tampered with. Don’t swipe your card if you find anything looking out of place or fishy. It is advisable not to use the non-bank ATM machines. The keypads need to be smooth and not hard to punch. When punching in your PIN number, make sure you block this with the other hand so that no one can see this. Use ATM that have security monitoring and are in public view.
- Monitoring your account on a regular basis is another step to ensure safety.
- If you decide not to make use of your credit card, ensure this is cut up and then thrown into the thrash. Do not forget to cancel this with the credit card company.
Protect Personal Information
Your personal information needs to be shared only to a limited number of people or organizations. Make sure this is provided only when absolutely necessary. Keep changing your privacy settings on your social media platforms.
You need to ensure that the anti-virus program on your computer is updated regularly. This needs to be licensed and trusted software.
How to avoid Digital Wallet Scams
You need to be well aware of the common mobile payment scams going on presently. You can stay safe by using some preventive measures.
It is wiser to link your credit card instead of your debit card as this can provide an additional layer of protection. Banks are able to trace payments made via credit cards with ease.
Avoid making payments via the mobile on public WiFi. Any financial transaction made on an insecure WiFi is the easiest way to hand over your personal information to fraudsters. Use any cash app only on secure networks that are ‘password-protected’.
Making payments to only the people you know is another way you can ensure safety.
There are multiple factors that contribute to the rise in digital fraud. Make sure you do not let go of risk assessment to combat fraud. Talking about online frauds, it is a known fact that prevention is better than the cure. Actually, there is no cure to this; you will only lose out on your hard-earned money to scamsters who do not deserve even a penny.