In the last three to four years, digital payment modes have seen a lot of traction as UPI transactions have become more accessible through phones. However, this has led many scammers to use tech-related gaps and fool consumers in a variety of ways. It has become very easy for the fraudsters to cheat the consumers by giving them fake offers. We list some of the methods used by fraudsters to fool people.
Phishing/Vishing: Scammers create a phishing website with a URL like a legitimate website, such as a bank’s website. These links are distributed through SMS, email, instant messenger etc. Users mistake the URL for the valid URL of the website and enter security credentials such as PIN, password, OTP, etc., which the fraudsters collect and use.
Murari Sreedharan, CTO, BankBazaar.com said, “Scamsters may contact you over the phone pretending to be bank employees, insurance agents, government officials, etc., and pressurize you to disclose confidential and sensitive information Or you can cheat. They may quote your name or date of birth to win your trust and ask that they need this information as an emergency measure to prevent transactions, prevent your account from getting blocked, get discounts, avoid penalties etc. the wanted.”
Unknown/Unverified Mobile Apps: Sometimes, phishing attacks involve app links instead of websites. Clicking on these links downloads unknown or unverified apps of dubious origin that look similar to authorized apps. Such unverified apps can alter permissions and give fraudsters full and unrestricted access to the device.
“Occasionally, download links may be to screen-sharing apps that allow scammers to remotely monitor or control a device and gain access to confidential financial credentials. They can then compromise without your permission. Can access your device to initiate and complete transactions on the device done,” Sreedharan said.
Collection Request Scams: Scammers can use the collection request option on UPI to dupe people. It is generally explained to people that they need to provide their UPI PIN to accept the collection request and receive the money, usually stating that it is a loan repatriation or refund.
Loan Fraud: Among the many banking frauds that entrepreneurs fall prey to, the most common is loan fraud. Ajit Kumar Singh, Founder and CEO, Save Solutions, said loan fraud usually involves impersonating reputable lenders, or offers coming up with a sense of urgency, while enticing people to avail loans on minimal terms. You can easily avoid becoming a target of loan fraud by doing a thorough research about the lender. This includes checking whether they are an RBI-registered NBFC or bank. It’s also a good idea to read reviews about the lender, check their websites, and make sure they have good reviews or take loans only through recommended institutions. Counterfeit lenders often charge an upfront fee. Genuine lenders do not ask for any advance before providing the loan. “Make sure you read the fine print to avoid any unexpected deductions,” Kumar said.
ATM Card Skimming/Quick Response (QR) Code Scam: Fraudsters often install skimming devices like dummy keypads or small/pinhole cameras in ATMs and take debit card data of customers. The scammers then use the data to create duplicate cards and withdraw money from their bank accounts.
In addition, scammers can contact you for banking facilities and trick you into scanning QR codes using a mobile application installed on your phone. As soon as you scan such code, you may inadvertently authorize scammers to withdraw money from your bank account.
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