Financial Frauds to Watch Out For: How to Stay Safe Online?

In today's digital era, the internet has become a breeding ground for financial frauds. From small phishing scams to big identity thefts, there are numerous ways in which cybercriminals can target innocent individuals.?

It's integral to stay informed and vigilant to protect yourself from such threats. In this blog we'll explore the various types of financial internet frauds that you need to watch out for. Also, the tactics provided alongside will help you take proactive measures towards protecting your financials and personal sensitive information in the virtual domain.

Financial Frauds & How to Stay Safe Online?

Every year, tens of thousands of people fall victim to either financial frauds or any kind of cyber crime. Latest reports till May 2024 have disclosed a 113% increase in filings. Everyday almost 7000 people report a complaint. More than 80% of which are related to online financial frauds. During the first 4 months of 2024 Indians have lost over Rs.1500 Crores in financial frauds.?

Do you ever ponder why it is happening? Some people say it is because of the increase in digital payments. But it is not so. It happens because people are negligent. They don’t think twice before clicking a link or making a payment to a random source. You cannot ignore the consequences of an action done negligently.?

Here is a list of major financial crimes that are taking place:

1. UPI scams
2. Credit card/debit card frauds
3. Bank Frauds
4. QR Code scam
5. Investment scam
6. Part-time job alert scam
7. Courier scam
8. Malware Warning etc.

Most of us define every financial fraud as - hacking. But that is not true. Two of the most common financial frauds happening every second are given below. If it has ever happened to you then after reading you will know how to protect yourself.

Phishing

Under phishing scammers send out emails to a large number of people pretending that it came from a legitimate source. How does it work? The email contains a link that will take you to a site. There you will have to make a login id using your details. Since the email is fake, so is the site. The intention behind is to steal your personal information including the financial details.?

How to avoid getting phished? Double check the source of the mail & never enter information without checking why it is needed. Also, prevent clicking on scam emails. Do you know why it is called Phishing? Because from all the emails sent, scammers will be able to catch a few fishes.

Identity Theft

Identity theft is yet another kind of internet fraud. In this scammers will open accounts using your information pretending to be you. They will then make purchases or do some sort of illegal activity. Usually plastic money is the main weapon. All this will affect your credit score and steal away your wealth. Identity theft is a major crime that will leave you in knots. It will affect your mental as well as financial well being.?

How to avoid it? Monitor your credit reports, change your important passwords frequently, keep a track of all your accounts including Demat, never use your main account for doing payments that are recurring/subscription based (always a second account handy with less money). Lastly, if you see a suspicious transaction/activity report it immediately.

Have you ever heard about the Madoff Ponzi scheme? Most of you must have. It involved swindling millions of dollars from the investors. It is one of the most infamous instances of financial fraud that has happened. The worst part? It still happens. When everything came out, the first thing people realized was that if they were diligent and cautious, everything could have been avoided.

What do we learn from it? Whenever you invest money in anything, do a little due diligence and ask yourself some questions about the choices you are making. A little background research would hurt no one!?

And remember if you are every stuck in an online fraud do the following:

1. Inform your bank and block your cards and freeze your account for some time.
2. File a complaint on the Cyber Crime Reporting Portal.?
3. Contact your jurisdictional police station?
4. Gather whatever evidence you can and keep it with you.
5. Lastly, wait and keep checking until you set a solution.

How to Stay Safe Online?

Staying safe on the internet requires a whole combination of skepticism, vigilance, caution and knowledge. By understanding and knowing the kinds of predators online you can easily take proactive steps. One has to use the internet daily, you cannot just avoid it. Therefore, taking precautions will surely help you reduce the risk.

Stay smart and remember- If something seems too good to be true, then it probably is!