Banking Fraud: 10 types of banking frauds in India customers should know about

During the COVID-19-induced lockdowns, digital modes of payments have seen a lot of traction. Customers benefit from digital payments because they make financial transactions easier. However, this also invited many fraudsters to make use of gaps and dupe the customers in different ways. To make banking customers aware of digital payments-related frauds, the Reserve bank of India has released a booklet that throws light on the modus operandi of such scamsters and what precautions customers should take before making financial transactions.

1. How does Phishing hacks work

Fraudsters create a phishing website that appears to be a legitimate website, such as a bank’s website, an e-commerce website, a search engine, and so on. Fraudsters distribute links to these websites by SMS, social media, email, and Instant Messenger, among other methods.

Many clients click on the link without first checking the Uniform Resource Locator (URL) and enter security credentials such as a Personal Identification Number (PIN), One Time Password (OTP), Password, and so on, which are collected and utilised by fraudsters.

2. How does Vishing work

Imposters acting as bankers, firm executives, insurance agents, government officials, and others call or approach customers over the phone or over social media. Imposters disclose a few consumer facts, such as the customer’s name or date of birth, to win trust.

Imposters may pressure or trick customers into sharing confidential information such as…