Over the past few years, the fintech industry has experienced unprecedented growth. From online KYC methods to seamless online payments, consumers have grown accustomed to the elevated comfort offered by digital finance services.
Unfortunately, digital advancement has also given rise to the pervasive threat of digital fraud. A report by the RBI suggests that the number of digital scams in the banking sector has increased from 7,338 in 2020-21 to 13,530 in 2022-23.
These digital frauds are happening in all sections of the society. That is why knowing the appropriate actions after encountering online fraud has become critical. This article aims to empower you with that knowledge, including steps to report digital fraud and avoid such scams in future.
Types of Digital Fraud
With the advent of digital technology, online scams have increased in number and become much more innovative and harder to identify. Hence, being aware of the most common types of digital fraud is paramount.
1. Phishing:
Phishing scams involve fraudsters posing as legitimate entities to trick you into revealing sensitive information. These scams are typically executed through emails or SMS. They might pose as banking officials or lottery facilitators, asking for your sensitive information to credit money into your account.
2. Vishing:
Voice phishing, or Vishing, is a form of cyber fraud over phone calls or voicemails. Like phishing, scammers might create a sense of urgency and ask you for your OTP or card details to scam your hard-earned money.
3. Skimming:
Skimming involves the illicit capture of credit card information from unsuspecting victims. Criminals install small devices on ATMs or point-of-sale terminals to record your card data when swiped. Criminals then use that data to create fake debit or credit cards and steal money from victims' accounts.
4. Website Spoofing:
Website spoofing is when fraudsters create fake websites that mimic legitimate ones. They use these deceptive sites to collect personal and financial information from you and then use it to rob you of your money.
5. Malware Attack:
Malware attacks involve the deployment of malicious software on your device. These programs can steal data, log keystrokes, or gain unauthorised access to your personal or financial accounts.
Steps To Take After Being Scammed
In case you have been a victim of an online fraud, you need to follow these steps immediately:
1. Contact your bank
If your money has been debited through a potential scam, immediately contact your bank. You should inform the customer support executive about the fraud and provide them with all the necessary details about the fraudulent transaction. Additionally, you can ask the bank if getting a refund on the scammed amount is possible.
2. Block your bank account and card
You must ask your bank to block or freeze your account temporarily to ensure the fraudster cannot scam more money out of your account. In addition, you can also block all your active cards and apply for a new one.
3. Reporting digital fraud to the nearest police station
Your next step should be to approach your nearest police station and file a fraud report. You need to provide as many details as possible about the fraud and convey the method of communication used by the scammer. You should also file a separate report to the National Cyber Crime Reporting Portal.
4. Keep a close eye on your account activity
Informing the concerned authority is an important step, but it is certainly not the final one. For the next few days, you must closely monitor your banking activities to ensure the fraudster has no more access to your bank account.
How To Report an Online Fraud
One of the very first things you should do after getting scammed is to file an official fraud report:
1. Gather supporting documents
Before registering a complaint, ensure you have all the necessary information to prove your case. The supporting documents should include account statements, the fraudulent email or SMS, screenshots of transactions, the communication method used by the scammer, and, if possible, call records of the fraud.
2. Register a complaint at your nearest police station
Digital fraud in the online banking world can be reported to the police. So, immediately notify the fraud at the police station and ask them to file an FIR against it. Ensure that the supporting documents are also included in the report.
3. File an online fraud complaint in the cyber-crime cell
You can also register a complaint online to the cybercrime cell. For this, you need to head to the National Cyber Crime Reporting Portal and provide the necessary details as asked.
Measures To Avoid Digital Scams
Whether you have faced digital fraud or not, you must adopt certain habits to avoid any digital fraud in future.
1. Educate yourself
One of the biggest reasons behind the prevalent scams in our country is the lack of awareness. As an informed consumer, you must be aware of the common tactics used by scammers. Avoid calls or messages that either promise a huge bounty or threaten to block your account for no reason.
2. Use verified apps or websites
You must ensure that the website or apps that you are using are legitimate and trustworthy. Filling in your essential details without background checks can be a colossal blunder. Always verify the website URL and app authenticity before inputting sensitive information.
3. Strengthen online security
Use strong, unique passwords for each account, and consider employing a reputable password manager. Additionally, install antimalware apps or software to stay safe from fraudulent attacks.
4. Avoid sharing sensitive information
Do not share your passwords, OTPs, and card details with anyone. No banking authority will ask for your OTP or card PIN. Hence, if someone asks for this information out of the blue, immediately cut contact with that stranger.
Parting Thoughts
Digital frauds in banking and other online realms constantly threaten our interconnected world. Falling victim to a digital scam can be distressing, but swift and informed action can mitigate the damage.
At Tata Capital, we believe in providing timely assistance to our customers in such tragic emergencies. If you encounter online fraud, immediately contact us for further assistance.
16 January 2024
6 mins read
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