How To Protect Your Money From Digital Banking Frauds

By | February 27, 2019

Here’s how to protect your money from digital banking frauds.

With the increasing use of the internet and mobile applications for financial transactions, digital banking frauds have increased manifold.

Reserve Bank of India has recently registered around 900 plus cases of banking fraud involving ATM, Debit Cards, Credit Cards and Internet banking, involving amounts of Rs. 1 lakh and above in April – September 2018.

As we move towards a digital and paperless economy, a lot of us are doing multiple online transactions each day. But with the ease and convenience of doing online transactions comes a lot of unwanted risks that can pose a great threat to your important financial information.

The easiest and most effective way to make sure that you don’t fall victim to any digital frauds is to educate yourself. So, without further ado, let’s take a look at the three most popular digital frauds doing the rounds in India.

OTP Theft

From ordering food online to paying Credit Card bills to online shopping, OTPs are a popular method of conducting safe financial transaction these days. But it also has a ton of loopholes.

According to a recent news report, some Bengaluru citizens lost lakhs of rupees to a One-Time Password scam. On the pretext of updating Credit Card or Debit Card details, fraudsters pretending to be bank employees tricked techies into revealing their CVVs and card numbers.

OTP theft generally occurs if your phone is infected by malware or you are conned into revealing your OTP by a fraudster. People who are new to online banking are more prone to such scams.

How to protect yourself from such scams? First, never reveal your personal and important details like your card details to anyone including bank officials. Remember, as a rule, no bank will ever ask you to give out your card details for verification or renewal on phone.

Second, don’t click any suspicious links received from unknown numbers. On clicking such links, you are giving access to fraudsters to your personal details, making it easy for them to get your OTPs.

Additional Reading: Now You Can Insure Yourself From Cyber Frauds!

Fake Mobile Banking Apps

Mobile applications, while convenient, can pose a big threat to your money. Today, a large number of fake mobile apps of leading banks like ICICI, SBI, Axis etc. are available on Google Play with the same logo of the respective banks that can make it difficult for you to differentiate between the original and fake apps.

Recently, RBI has also warned all online banking users against the fraudulent ‘Any Desk’ App that can steal your financial information and funds in no time.

Once you download these fake apps, the malware in these apps can steal your account and card details and rob you of your money. Therefore, to make sure that your personal information is not misused, it’s advisable to always use antivirus software that can protect your phone from any malware and internet security issues. Also, only use secure apps downloaded from verified sources, like the BankBazaar Mobile App!

SIM Swap

SIM swap is again one of the most popular tricks that fraudsters use to get your personal banking information via vishing, phishing, malware etc. Once they get access to your personal details, they block your original SIM and get a duplicate one using a fake ID proof. After that, it becomes easier for them to receive a one-time password (OTP) on the duplicate SIM to initiate financial transactions.

To avoid getting into this trap, make sure to always register for both SMS and email alerts that can help you track various activities on your bank account. This will ensure that even if you don’t get an SMS alert, the bank will send you an email alert for all your financial transactions. Also, carefully monitor your bank statements and all banking transaction history to quickly identify any issues or irregularities.

Last, but not least, keep checking your phone’s network connectivity status. If you don’t receive any notifications for a long time, it’s smart to contact your mobile operator immediately to ensure that you are safe.

Additional Reading: Everything You Need To Know About SIM Swap Fraud

There you go! In case you are looking for a loan or Credit Card, here are instant-approval offers exclusively for you. Explore your options right away!

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