Popular Financial Frauds in India
A few weeks before Diwali, a friend fell victim to Fedex Fraud and lost a hefty sum. I also noticed an increase in discussions about frauds (attempted / executed), over the last one month. That prompted me to compile this list of frequently attempted financial frauds and how we can safeguard ourselves from it.
Some popular frauds:
Here is the Modus Operandi of some frauds, compiled by RBI. I’ll be covering some of them in this post. Feel free to add other fraud MOs you are aware of, in the comments section.
1. Fedex
Call starts with “This is a call from FedEx. Your parcel has been returned.” First time I got it, I asked for AWB no. and from/to address. Since it mentioned Mumbai, where I don’t live, I knew it was fraud.
I understand from my friend who faced this fraud that more than 1k txns happened in the fraudster’s account — which obviously makes it suspicious. I’m surprised the concerned bank (ICICI) doesn’t have algorithms in place to recognise fraudulent transactions. I hope fraud rules are set up / updated based on complaints received from customers.
How to prevent?
When in doubt, look up online. You’d find warnings on the concerned sites regd such scams. Ask for an email / official documentation and verify it with AWB on FedEx site. Cross check with their customer care. The moment you stop and think, the fraudster will lose interest.
2. Aadhar biometrics
In these Aadhaar Enabled Payment System frauds, criminals exploit victims’ Aadhaar biometric data to withdraw funds without their consent/OTP.
How to prevent?
Lock your Aadhar biometrics on UIDAI site (search online for steps or check this link).
3. Impersonation
Fake accounts on social media (FB/IG/WA). Fraudster poses as a friend/relative and asks for money. Deep fake video calls make it difficult to identify.
How to prevent?
Directly contact the concerned person before transferring money.
4. Amazon Pay Later / login attempt
Fraudster poses as Amazon Customer Care, asks you to reset password via link, to prevent an “unauthorised login attempt”. Once you act on it, they can then access your account and use “Amazon Pay Later” (an acquaintance lost Rs 1L).
How to prevent?
Apparently, 2FA doesn’t suffice to prevent this. Consider deactivating Amazon Pay Later. Hope Amazon enhances security.
5. SIM Cloning/ Swapping / switching
Hackers clone SIM card to use your number on another device.
How to prevent?
Report sudden deactivation/0 signal to Network Service Provider. More tips available here.
6. Credit card / Forex fraud
International online transactions often don’t require OTP, making unauthorized fraudulent transactions likely to be international.
How to prevent?
Deactivate online international txns on your app / banking portal & activate it only on a need basis. OR use disposable “virtual cards” that can be used for a limited time period / fixed number of transactions. The card becomes invalid once that condition is met and saves you from unintended use. Bookmyforex offers this option.
7. Remote sharing app installed on phone
A couple of years back a senior citizen relative lost some money due to a remote app installed on his phone. Of course, he had no knowledge of this app. He could not stop the OTPs coming in & the SMSes being read & deleted, within few minutes & he could only watch it happen.
How to prevent?
Check periodically the permissions granted to apps on your phone. Avoid providing access to SMS / Phone dialler etc. If you still face this situation, immediately switch off your phone & remove the SIM.
8. ATM card skimming
Educate yourself on how to recognize skimmers placed in ATM machines or card swiping terminals. There are online videos available for reference.
9. QR Code scan
There is sufficient awareness around this — NEVER input your PIN to receive money via UPI.
10. Credit card points Expiry:
If the SMS signature in the screenshot isn’t obvious enough for you to recognise this as fraud, then think twice before you input your login credentials into any third party apps.
11. False Auto-renewal Claim
If you receive an email like the one below — just know that you can log into the concerned website / look for advisory on their portal regd any potential fraud. When in doubt, you can look up “check if this website is safe / legit — you can input the link on these online sites to verify.
12. Paid reviews
Have you received “Hi dear, how are you?” messages from international numbers on Whatsapp? Beware of messages from international numbers offering payment for leaving reviews. Such schemes often lead to quick money-making scams. You will see investment tips being discussed on Telegram groups. If you get tempted, you will end up losing money.
How to prevent?
Don’t engage with such fraudsters. Or take the money you get for the review and stop with that :D
General tips:
1. Check the fraud prevention guidelines provided by Cyber Crime. Fraud helpline no: 1930
2. Enable auto-record for unsaved numbers on your phone to deter scammers. Check your phone settings for call recording options.
3. When in doubt, visit official websites and cross-verify information with customer care. Most banks and websites have fraud advisory sections.
What can you do after money is gone from your account?
1. Report it immediately to your bank and raise an RTGS Recall request (if possible) and freeze the recipient’s account.
2. File a complaint with Cyber Crime & report at the nearest police station.
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If you find this article useful, pls spread the word. This may save someone the pain of losing their hard-earned money. Stay safe!
