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8 Common Banking Scams and How to Prevent Them

RBL Bank Aug 01, 2023

With the increasing digitalization of banking services, it is crucial for customers to be aware of the prevalent banking scams and learn effective strategies to protect themselves. From phishing and smishing to fake loan offers and digital payment fraud, listed are the 8 common scamming techniques used by fraudsters:

1. Phishing

Fraudsters send fake emails or messages that appear to be from reliable sources, such as a bank or government agencies. They attempt to trick people into providing sensitive information like passwords or credit card information. They create a sense of urgency or importance to manipulate recipients into clicking on malicious links or entering confidential information on fraudulent websites. To protect yourself, never click on links from unknown sources and use caution when sharing personal information.

2. Smishing

Like phishing, smishing is when scammers send fake text messages to deceive people into providing personal information. It can also be done with the help of malware or fraudulent websites. SMS phishing happens on many different types of mobile text messaging apps, as well as non-mobile text messaging channels such as data based mobile messaging apps. To stay safe, avoid clicking on links in unsolicited text messages and be cautious about sharing personal information.

3. Juice Jacking

It is a cybersecurity threat where attackers tamper with public charging stations or USB ports to steal data from unsuspecting individuals. When a user connects their device to a charging station or port which has been tampered with, the attacker can gain unauthorized access to their device, install malicious software, steal personal information, or control the device remotely. To protect yourself, consider avoiding the use of public or unattended charging cords or USB connections whenever possible.

4. KYC Scams

Know Your Customer (KYC) scam involves fraudsters posing as legitimate organizations or service providers to trick people into revealing personal and financial information. They often target people who have to go through a verification process, for example when opening a bank account or using online financial services. To avoid becoming a victim of such scams, be vigilant and inform your bank or the competent authority if you suspect fraud.

5. SIM Swapping

SIM swapping fraud is an online scam where fraudsters get a new SIM card issued against victim's registered mobile number. Once the fraudster gains control of the victim's phone number, they can capture OTPs (One Time Passwords) and carry out fraudulent transactions. If your SIM card stops working, contact your service provider immediately to report the problem and prevent unauthorized use.

6. Digital Payment Fraud

Scammers often target popular digital payment platforms such as Google Pay and Phone Pe. By sending fake payment requests, creating fake QR codes, or spoofing UPI IDs, users can be tricked into paying into the wrong account instead of the intended recipient. To protect yourself, be careful with your personal information, verify payment requests, and install official apps from trusted sources.

7. Fake Loan Offers

Scammers pretend to be legitimate lenders or financial institutions, promising quick and easy loans with low interest rates and flexible terms. They often reach out to people in need of credit through email, phone calls, or online advertisements. To avoid being tricked by fake loan offers, do not make payments or enter secure credentials against loan offers at low interest, without verifying if the lender is registered with the Regulator.

8. WhatsApp Scams

Scammers use WhatsApp to trick people into giving away personal information or transferring money. They may impersonate trusted contacts, offer fake job opportunities, lottery scams, or investment schemes. Be wary of unsolicited WhatsApp messages and avoid sharing personal or financial details.

Since some of the scams are so convincing and well organized, it is in our best interest to always keep our guard up.

  • Never provide any kind of personal information to anyone on the phone/unrecognized e-mail ids/links
  • Listen carefully and be attentive while responding
  • Don’t download or click unsolicited links or attachments
  • Use multi-factor authentication and strong passwords
  • Be vigilant and skeptical

What to do if you get scammed?

If you are a victim of cyber financial fraud or know someone who has been a victim of a cyber-attack, there are some things that you can do:

  • Please contact your bank and notify them of such occurrence to avoid further transactions from account and to recall the funds from beneficiary Bank/Merchant.
  • In case of payment app fraud, please use the help section to notify your bank.
  • To register a complaint immediately, call 1930 or visit the National Cybercrime Reporting Portal.

Stay informed, stay cautious, and empower yourself with the knowledge needed to navigate the digital banking landscape securely!

To know how to handle such scammers watch these videos.

Disclaimer: Articles published on the website are merely indicative and suggestive in nature and do not amount to solicitation. The contents do not guarantee the desired returns and/or results. Reader is advised to exercise discretion and consult independent advisors for achieving desired result. Visitors to this blog/ website w.r.t products & services offered by RBL Bank Limited herein, shall ensure that the comments / feedback posted shall be restricted to the contents published herein and shall not contain such language that may be un-parliamentary or against any religion, caste, section of society, political view etc. While our endeavor is to publish the comments that are submitted, however, all comments/feedback shall be subject to internal review by RBL Bank Limited. We do not guarantee that the comments that are submitted will be published.

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