Customers in India should be aware of banking frauds.
Digital modes of payment gained a lot of traction during the COVID-19-induced lockdowns. Digital payments benefit customers by making financial transactions easier.
However, this also encouraged many fraudsters to exploit gaps and dupe customers in various ways. To raise awareness of digital payments-related frauds among banking customers, the Reserve Bank of India has issued a booklet outlining the tactics used by such scammers and the precautions customers should take before making financial transactions.
- How do Phishing hacks operate?
Fraudsters develop a phishing website that looks to be a legitimate website, such as a bank's website, an e-commerce website, a search engine, and so on. Scammers send links to these websites via SMS, social media, email, and Instant Messenger, among other channels.
Many clients click on the link without first checking the Uniform Resource Locator (URL) and provide security credentials such as a Personal Identification Number (PIN), One Time Password (OTP), Password, and so on, which fraudsters collect and use.
- Online sales platform scams
Fraudsters pose as buyers on online sales platforms and express an interest in the seller's product (s). To gain trust, several fraudsters pose as defence personnel stationed in remote areas.
Rather than paying the vendor, they use the Unified Payments Interface (UPI) app's "request money" option and request that the seller authorise the request by entering the UPI PIN. When the seller enters the PIN, money is transferred to the fraudster's account.
- Frauds committed as a result of the use of unknown/unverified mobile apps
According to the RBI, fraudsters distribute certain app links disguised to look like existing apps from authorised entities via SMS, email, social media, Instant Messenger, and other channels. Fraudsters trick customers into clicking on such links, resulting in the download of unknown / unverified apps on the customer's mobile, laptop, desktop, and so on.
The fraudster gains complete control of the customer's device once the malicious application is downloaded. These include confidential information stored on the device as well as messages / OTPs received prior to and after the installation of such apps.
- ATM card theft
Skimming devices are installed in ATM machines by fraudsters who take data from the customer's card. According to the RBI release, “Fraudsters may also install a dummy keypad or a small / pinhole camera, well-hidden from plain sight to capture ATM PIN. ?
Sometimes, fraudsters pretending to be other customer standing near-by gain access to the PIN when the customer enters it in an ATM machine. This data is then used to create a duplicate card and withdraw money from the customer’s account.”
- Screen sharing app fraud / Remote access
RBI warns customers stating the procedure that "Fraudsters trick the customer to download a screen-sharing app. Using such an app, fraudsters can monitor/control the customer's mobile device or laptop and gain access to the customer's financial information. Fraudsters use this information to conduct unauthorised fund transfers or payments through the customer's Internet banking/payment apps."
- Scam via QR code scan
"Fraudsters frequently contact customers under various pretexts and trick them into scanning Quick Response (QR) codes using the apps on the customers' phones," RBI explained. Customers may unknowingly authorise fraudsters to withdraw money from their accounts by scanning such QR codes".
Wear Your Mask Daily & Never Share Your:
- OTP
- CARD NUMBER
- UPI PIN
- BANK DETAILS