A resident of Chandigarh fell prey to a credit card scam based on a phone call, thus incurring a loss of as much as ₹9 lakh. On this phone call, the scammed person was told that the caller was a representative of a bank and that he was concerned about the requirements of the applicant. Trusting the legitimacy, he imparted his banking account number details and OTPs, little did he know that it was all about how the muggers siphoned off ₹9 lakh from his account.
This case deals with the increasing menace of digital fraud in India, where the offenders are using more sophisticated means to apply emotional pressure on individuals to divulge too many confidential banking details.
Also Read: New Call Merging Scam: How It Works And How To Stay Safe
Rise In Online Financial Frauds: Shocking Statistics From RBI Reports
Stern reports were received by RBI indicating that, as of late, there was an alarming increase in cases of online financial fraud:
| Category | FY 2022-23 | FY 2023-24 | Increase (%) |
|---|
| Online Fraud Cases | 6,699 | 29,082 | 334% |
| Fraud Amount (₹ Cr) | 227 | 1,457 | 542% |
| Total Bank Fraud Cases | 18,461 | (H1 FY24) | - |
| Loss Due to Frauds (₹ Cr) | 2,623 | 21,367 | 814% |
The findings paint a distressing picture highlighting a marked growth in online financial fraud cases, posing a risk to customers banked in India at large.
How Do Credit Card Scams Work?
Scammers employ various deceptive methods to target unsuspecting individuals. Here’s how they operate:
-
Fake Bank Calls: A Caller, calling him/herself a bank representative, requests certain personal details on the pretext of assisting with a credit card application or upgrades.
-
Phishing Links: Innocent people are sent fraudulent emails/messages that appear to be from the bank, directing them toward links pointing to fake banking websites for persons to enter sensitive and confidential information.
-
Remote Access Malware: Cybercriminals trick users into installing a rogue app allowing them remote access to their mobile devices.
-
SIM Card Swapping: Scammers clone SIM cards and exploit them to receive OTPs and carry out fake transactions.
Also Read: Fake India Post SMS Scam: Don't Fall for This Delivery Fraud!
How To Protect Yourself From Credit Card Scams
Various basic security tips to secure oneself from such scams are discussed below−
1. Verify The Caller
-
Do not reveal any of your sensitive banking details over the phone.
-
If someone claims to belong to a bank, verify this by calling a bank on a known toll-free customer care number.
2. Do Not Share OTP & CVV Details
-
An OTP, PIN, or CVV is something a bank would never need from you.
-
Work to keep this information confidential, even from raised hands inside the school.
3. Be Careful With Links & Apps
4. Review Demonition Bank Transactions Frequently
-
SMS and email alerts can be set up for all transactions.
-
For any misdeeds, be sure to report suspected inactivity immediately to your bank.
5. Safeguard That SIM Card & Mobile Banking Apps
-
Use strong passwords to protect your apps and make sure that two-factor authentication (2FA) is always enabled on banking apps.
-
If your SIM card mysteriously becomes unresponsive, get in touch with your mobile network provider. You may be a victim of SIM swap fraud.
Also Read: Recent Multi-crore Fraud In Kerala: A 26-Year-Old Fraudster On The Rise
What Is The RBI Doing To Combat Online Fraud?
In a bid to tackle the rise in fraud cases, the Reserve Bank of India has ensured stricter guidelines on cybersecurity for banks and financial institutions. These include:
-
Enhanced Transaction Tracking: Banks should deploy AI-based fraud detection systems to monitor any unusual activities.
-
Stringent Customer Verification: Multi-level authentication is now required for high-value transactions.
-
Awareness Drives: RBI and the banks are conducting digital literacy programs to help sensitize bank customers against financial fraud.
Despite all these initiatives, however, individual awareness remains the best shield against computer scams.
Conclusion
With India's evolution into a digital economy, the threat of online financial fraud is at its peak. Scammers never stop experimenting and change their tactics, demanding special vigilance from the people. Following safe banking practices, being mindful of unrecognized calls, and keeping your radar open to new fraud tactics can help save you from financial scams.
Get the latest updates on government schemes and policies with Jaagruk Bharat. Join India's biggest Jaagruk Bharat community. Share your thoughts, questions, and your favourite topics for us to cover.
