Financial Crime World

India Faces Repeated Threats from Financial Fraud Schemes

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New Delhi, India - Financial scams have been a persistent concern in the country, affecting both individuals and the economy. Despite a decline in reported cases, financial fraud continues to plague India, with statistics showing that reported cases exceeded 95,000 in the fiscal year 2022-2023.

Types of Financial Frauds

  • UPI-related scams have seen a substantial increase in reported cases.
  • Prevention measures include verifying transactions carefully and double-checking details before approving.

Digital Banking and Credit Card Fraud

  • Reported cases surged during the fiscal year 2023, with nearly half falling under the category of digital payment-card/internet fraud.
  • Prevention measures include regularly monitoring bank statements, enabling transaction alerts, and never sharing OTPs or sensitive information.

Bank Frauds

  • Encompassing loan frauds and unauthorized transactions, bank frauds continue to pose a threat.
  • Prevention measures include being cautious of unsolicited communication, regularly updating passwords, and enabling multi-factor authentication for online banking.

Emerging Scams

QR Code Scams

  • 41% of reported cybercrime incidents in Bengaluru were attributed to QR code scams.
  • Prevention measures include only scanning QR codes from trusted sources and being wary of unsolicited QR codes received through messages or emails.

Fraudulent Investment Schemes

  • Continuing to lure individuals with promises of unrealistic returns, fraudulent investment schemes pose a significant risk.
  • Prevention measures include conducting thorough research on investment opportunities, verifying company credentials, and being sceptical of schemes promising unrealistic returns.

Online Job Scams

  • Exploiting individuals with promises of easy part-time work, online job scams are on the rise.
  • Prevention measures include researching and verifying the legitimacy of job offers, avoiding sharing personal or financial information with unknown entities, and using reputable job portals.

Courier Scams

  • Targeting young individuals in Bengaluru, courier scams have emerged as a new threat.
  • Prevention measures include verifying unexpected communication from courier services directly and being cautious of unsolicited calls claiming to be from courier companies.

Cybersecurity Concerns

Malware Attacks

  • The use of malware by fraudsters is another significant concern, compromising devices and gaining unauthorized access to financial information.
  • Prevention measures include installing reputable antivirus and anti-malware software, avoiding clicking on suspicious links, and regularly updating device software.

Conclusion

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As financial scams continue to evolve, it is essential for individuals to remain vigilant, cautious, and thorough in their verification processes to protect themselves from falling victim to these malicious activities.