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How To Avoid Digital Banking Frauds?

IamCheated.com Research Team | March 19, 2019  4:05:pm

How To Avoid Digital Banking Frauds?

India is fast moving towards a digital economy and after demonetization; many Indians prefer digital transactions to cash transactions. As digital transactions are increasing each day, digital banking frauds are on the rise. As per a report, debit and credit card frauds have spiked after demonetization and many innocent people have lost lakhs of rupees to these frauds.

The reason why many people are falling prey to such frauds is lack of awareness. So, in this blog, we will discuss what the most common digital frauds are and how to avoid them.

How To Avoid Digital Banking Frauds?

These are the common digital banking frauds and tips to avoid them.

1. OTP fraud

OTP fraud has become the quickest way for fraudsters to make money. In the past few years, many people in India have lost lakhs of money to OTP fraud.  Fraudsters call people posing as bank employees and ask them to provide the OTP in the name of renewing their cards. In some cases, fraudsters have even posed as customer care executives and collected OTP from customers in the name of resolving issues.

The sad part is, many people in India are still not aware on the importance of OTP.  OTP is the second layer of protection which makes online payments very secure. The online banking transactions which you make will be completed only after you enter the OTP.   But, people who are not aware of the fact that OTP should not be shared with anyone; share OTP and lose their money.

How to avoid OTP fraud?

To avoid this fraud, do remember that the OTP must not be shared. No banks or financial institutions will call asking for card details or OTP. In case you receive such calls, kindly report them to the nearest police station.

2. Fake Mobile Banking Apps

Mobile banking is very convenient and with mobile banking apps, you can do a lot of things like transferring money, mobile recharge, payment of utility bills and so on. But, the problem is not all mobile banking apps available on Play Store are the genuine article. There are many fake apps developed by fraudsters, which look just like the original banking apps. Using these apps can put your money at risk.

Once these apps are installed on your phone, malware can steal your bank details and wipe out money from your bank account.

How to avoid this fraud?

Before downloading any apps, you must verify and install the genuine app from the Google Play Store and Apple Store. You must also check the reviews of the app.

Install antivirus app to protect your phone from malware and internet security issues.

See Also: How To Secure Mobile Banking Apps?

3. SIM swap fraud

SIM swap fraud is another trick used by fraudsters to steal money from your bank account. Under this fraud, fraudsters first collect your personal banking information through Smishing, Phishing, Vishing or any other means. Once all your information is collected, they contact your mobile operator saying the original SIM is lost and apply for a duplicate SIM card.  The mobile operator will block your SIM card.

Once your SIM is blocked, the fraudster will activate the new SIM on his mobile phone. After this it becomes easy to wipe out money from your bank account as the OTP will be sent to their phone.

See Also: How To Save Yourself From SIM Swap Fraud?

How to avoid SIM swap fraud?

1. Register for both SMS and email alerts to stay informed on your bank account transactions.

2. Go through your bank account and credit card statements regularly. In case of any suspicious transactions, report them to your bank immediately.

3. If your phone is out of service without any valid reason, contact your mobile service provider, immediately.

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