Tips to Safeguard yourself against Digital Frauds/Crimes

We live in a digital age. Post demonetization and pandemic, most Indians have accepted online transacting in a big way. Recently, a video of a street person playing a musical instrument while accepting donations through a QR Code put on the horns of a bull went viral in India. This is ample proof of the large scale conversion to digital payments in India.

Today, trends show that online payment methods are not only used by large business setup but also by small vendors - and their reach is not limited to only cities but rural areas as well. India is well on its way to becoming a digitally advanced country and a global leader in many aspects.

Unfortunately, with the immense advantages and benefits of going digital and online, there are also some risks and disadvantages. As we are moving towards Digital India, the cases of online frauds and cheating and all types of cybercrimes are also increasing rapidly.

As per the data of NCRB (National Crime Records Bureau), India recorded 50,035 reported cases of cybercrime in 2020, an 11.8% rise compared to 2019. Government bodies RBI & SEBI have cautioned customers & service providers of financial fraud, especially in banks. One wrong click on the web or your smartphone can cause or land you into a financial loss or a victim of cybercrime. Moreover, these frauds keep on identifying and adopting new technologies very frequently. Therefore, understanding these financial frauds and cyber crimes is necessary to protect us.

The children especially are the most vulnerable and targetted groups today. There have been instances where children have exhausted the credit limits of their parents' cards in games. Often, just being careful, following basic digital hygiene should be enough to avoid becoming a victim.

Here are a few things you can do ...

KYC /Identity Frauds

Due to the pandemic, many people stopped visiting bank branches & adopted digital banking, providing fraudsters with an opportunity to use KYC as a reason to engage with customers by pretending to be bankers by sending unsolicited SMS or calls to create panic among customers asking for account or login details, card information, PIN, OTP, etc. they entice you for personal details under the pretext of KYC verification.

If such a question is raised, it's a red flag for financial fraud. Never share any OTP, your personal details, credit /debit card details, PIN, etc. with anyone.

Any genuine person from a financial institution will never ask for these details over the phone or via any third party or other apps. Always get in touch with your bank, broker, etc. face to face or through proper online desks /apps for such requests.

Do not trust web searches too, as fraudsters are also spreading fake customer care numbers of banks or UPI platforms online with closely matching website addresses. Always verify the other person posing as your friend or family member by having a personal conversation before responding to online messages.

Third-party devices and internet connections

You must ideally access online accounts of financial institutions like banks, brokers, etc, and perform financial transactions only from your own mobile devices /computers. If, in any circumstance it becomes unavoidable, then make sure your save login / auto-login is not selected and you fully log out from your accounts and close the tab /browser after successfully logging out.

There may be software installed on such unsecured computers/devices which can read your login credentials and other details. Also, do not just throw away or resale your old mobile device or computer. Make sure that you erase /format the hard drive before handing it over to someone else.

Use Smart, Verified Apps & Websites only

Mobile apps are great for quick access to a variety of services, but not all apps are secure. Today we find children using their parent's mobiles and downloading all sorts of game applications. This poses a huge risk with which we are not even familiar.

Never download any unknown, or pirated software or applications on your computers and mobile devices.

Make sure twice if you really need any new software or application and if it is from a trusted source, irrespective of how professional or big the website /developer may claim to be.

Further, while browsing too, make sure that you are browsing genuine sites and not fake ones that look similar. Make a habit of looking at the website addresses and remembering them. Sites that contain “https://” domain name in the URL are a tad safer.

Keep Strong Passwords Secret

Do not share passwords and do not leave any documents that contain login credentials or personal details in an unsecured area or with any untrusted person. Most common passwords like name@1, date of birth, names of family members, etc are not safe and are easily recognisable within seconds by professionals.

It is very important to have strong and untraceable passwords but easy to remember using a combination of letters, numbers, and special characters when possible.

Strong passwords are recommended for all your primary social media accounts, financial accounts, your mobile devices, your computers /laptops and even your WIFI networks at home or at the workplace.

Do not click /download

A lot of scammers /hackers will lure you into visiting clicking on links, visiting websites, downloading free materials, and so on from emails, text messages, ads/banners/pop-ups on websites, dubious websites like gaming, software/media downloads and even WhatsApp groups.

The most common phishing scams are done employing this method where some social engineering is done, and an attacker sends a fraudulent message designed to trick a human victim into revealing sensitive information or to deploy malicious software on the victim's infrastructure like ransomware.

The best precaution is to never click on any banner/button and not download any file at any unknown /untrusted page or sender.

UPI-related Frauds

The UPI or Unified Payments Interface (UPI) has transformed the payments' ecosystem in India. It has a feature in which you or the merchant can send the user a request to collect money. If you are not tech-savvy or literate, please learn to use this feature before using it.

This feature is often used by fraudsters on fake shopping websites. One tip to remember is that when you are receiving money in your bank account you don't have to give a PIN or OTP. Likewise, when you are receiving money in UPI you don't need to enter any PIN.

Treat your PIN exactly like you treat your ATM PIN. Else, you will end up paying money instead of receiving it.

Conclusion

There is risk in everything you do. Crossing a road, getting into a business or investing online. Digital adoption will become a part of life, it is also recommended and an unavoidable fact of life.

The benefits and ease of life with digital adoption far outweigh the risks and thus, there is no need to be afraid and shun the experience, be it being active on social media or transacting online. At any given point, there are millions who are leveraging the benefits of the new digital age.

The need today is to learn about the risks, crimes and perils existing in the digital world. Knowing the same and practicing the important dos and don'ts will only make this experience safe for you and your family members.