Important To Avoid Digital Payment Scams
Consumers have various easy and well-liked digital payment options, from credit cards to mobile wallets and everything in between. People’s need for cash has drastically decreased in recent years due to the advent of digital payment applications and platforms. These digital technologies allow people to quickly and easily make payments using a few clicks on a computer or mobile device.
Process simplification and ease are beneficial, but there are significant drawbacks, including concerns about financial flow and consumer privacy. Cybercrime has grown as a result of the development of digital payments. You could fall victim to online fraud even if you make a small mistake. Users should be aware of the following common digital payment frauds while making payments online:
Fake loan schemes
In this kind of fraud, fraudsters make unbelievable interest rate offers, pay little attention to your credit history, and pressure you to take the loan by claiming that the offer is only good for a limited period. They charge processing fees in advance to get the loan issued, but they stop returning calls after clients refuse to comply with their demands. Before requesting you accept the offer, they provide the names of reputable banks and financial institutions to gain your trust. To deceive consumers into taking out loans, scammers have used email identities, fake domain names, or websites that resemble or are replicas of well-known NBFCs.
Also Read: PayPal – The Success Story
New KYC fraud
Scammers have developed new strategies to scam customers of their money now that KYC is required for online wallets. You might get a text message telling you to update your KYC along with a link. The link requests your bank details, credit card info, and OTP. However, once you submit the information, money is deducted from your account or credit card. Always trust official notices from bank offices or websites over SMS, as they are more trustworthy.
Insurance scams
Fraudsters use this tactic to mislead consumers who can’t tell the difference between the websites of authentic insurance regulators and fraudulent ones. They gain customers’ trust by posing representatives from well-known financial institutions and making an offer to borrow money from one of those companies (if the customer takes insurance from them.) Now it becomes important for you to be attentive. Always make sure the website you’re using starts with “HTTPS” rather than just “HTTP” and is secure. You should also confirm the website’s physical address, phone number, and email address (which should be valid).
Phishing
This type of fraud involves sending you an email that appears to be from a reputable company and includes download links or attachments. Because clicking on the link or downloading the file would give the fraudster access to your device and data, this is a pretty common method of data fraud.
You should adhere to simple rules to avoid getting scammed or deceived online. Verifying every detail, avoiding sending private information by phone, mail, text, or WhatsApp, checking the credentials of your agents, understanding the exact steps required to apply for loans and insurance, and receiving approval are just a few things to keep in mind. Only if you take precautions when making digital transactions will you be able to shield yourself from these scammers and their nasty behaviours.
Any suspicious occurrences and instances of funds being stolen due to these fraudulent acts and practices should be reported by anyone who has fallen victim to a digital scam to the appropriate authorities, such as the police, especially the Cyber Crime Cell, and the telecom regulator. Once one discovers a cyber scam, one should immediately report it to the National Cyber Crime Reporting Portal or dial the helpline at 1930.
Read More: Digital Payments In India – Definition, Methods, and Benefits
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