Financial Crime World

Financial Scams Resurface in India: A Wake-Up Call for Vigilance

Financial scams continue to pose a significant threat to individuals and the economy in India. Although there was a decline in bank frauds in 2023, totaling 302.5 billion rupees, down from 1.3 trillion in 2021, the rise of digital scams is a cause for concern.

Types of Financial Scams in India (2023)

UPI Frauds

Identity-related scams associated with UPI transactions

  • Reported cases exceeded 95,000 in the fiscal year 2022-2023.
  • To mitigate theft, consumers should:
    • Verify transactions meticulously.
    • Avoid clicking on unsolicited links or responding to unknown messages.
    • Double-check details before approving transactions.

Digital Banking and Credit Card Frauds

An unprecedented surge in online banking frauds and credit card frauds

  • 13,530 fraud cases were recorded in the fiscal year 2023.
  • Consumers should:
    • Regularly monitor their bank statements.
    • Enable transaction alerts.
    • Never share OTPs or sensitive information.
    • Install reputable antivirus software.

Bank Frauds

Despite a decline, these frauds resulted in losses amounting to 4.69 lakh crore between 2014 and 2023

  • Be wary of unsolicited communications.
  • Regularly update passwords.
  • Enable multi-factor authentication for online banking.
  • Verify the legitimacy of financial institutions before conducting large transactions.

QR Code Scams

Predominantly in Bengaluru, where 41% of reported cybercrime incidents involved QR code frauds

  • Scan QR codes only from trusted sources.
  • Be cautious of unsolicited QR codes.
  • Regularly update mobile security software.

Investment Scams

Exploiting unsuspecting investors

  • Conduct extensive research on investment opportunities.
  • Verify company credentials.
  • Exercise healthy skepticism towards schemes promising inflated returns.
  • Seek advice from financial advisers before making substantial investments.

Part-time Job Scams

Online scammers prey on individuals searching for part-time jobs

  • Research the legitimacy of job offers.
  • Never share personal or financial details with unknown entities.
  • Utilize reputable job portals.
  • Avoid high-paying part-time jobs that appear too good to be true.

Courier Scams

Targeting young individuals

  • Verify communications directly with the courier company.
  • Refrain from sharing personal information or making financial transactions without thorough verification.
  • Be cautious of unsolicited calls claiming to be from courier companies.

Malware Threats

Cybercriminals tricks consumers into installing malware

  • Protect your devices by installing reputable antivirus and anti-malware software.
  • Avoid clicking on suspicious links, especially those received through emails or messages.
  • Regularly update device software for enhanced security.

Staying informed and vigilant is crucial in preventing potential losses due to financial scams in India. Implementing these precautions can go a long way in shielding yourself and your finances from the ever-changing landscape of financial scams.