After the liberalization, banks are forced to adopt various banking services and change their approach toward customers in the competitive world. As we are in a modern era, where e-banking is a prevalent method of accessing your finance.
We know the level of security, as well as scams in banking, is tantamount. Especially, in this pandemic, many people have encountered a large number of complaints regarding fraudulent acts through online transactions.
Even in the case of Blockchain having a strong security base, it faces a lot of hackers, for instance taking the biggest hack of $600 million in 2021, which impacted a bad phrase for many investors.
Bank frauds are not similar to online malware, we could see many surveillance videos of robbers entering the premises and stealing money in the open air. So, fraudulent acts via banking are a common issue we face, even after imposing tight security. Here, in this article, you could see the top bank frauds we are facing in 2022.
Phishing is illicit conduct in which an attacker attempts to get access to a user's website by sending spam messages in the hopes of tricking the victim into divulging sensitive information. Phishing can be carried out by sending fraudulent messages or installing harmful software on the user's computer, such as Ransomware.
Furthermore, link manipulation is a Phishing tactic that involves creating misspelt links and URLs. As you see, you will receive plenty of emails saying ‘click the below link to download the software that ultimately leads you to a fraud platform.
2. Pharming Scams
Pharming is currently one of the most common cybercrime attacks in the world. Pharming, on the other hand, is the act of sending users to a malicious website or damaging the computer's DNS server software. To put it another way, pharming is similar to phishing but does not involve tricking consumers into participating in the scheme.
In companies that host e-commerce and online banking services, it's practically universal. The phrase "pharming" refers to the process of cultivating and obtaining confidential information from users.
It is a computer slang term for "farming." Pharming is the use of DNS (Domain Name Server) software on a computer to alter the IP address of a legitimate website to one that is malicious. Finally, the user is redirected to a possibly dangerous website.
3. Technical Support Scam
Those who are accessing online banking consider the Technical support team as their last resort. where the victim customer shares their problems regarding technical to the technical team with the hope of solving it, thinking that you are conversing with the right staff, But You are not!.
This type of fraud occurs through social engineering, where the fraudster enables your personal computer and can gain confidential information.
Spoofing is a cunning form of fraud in which the fraudster convinces you that they are coming from reliable sources. For example, you may receive a call, email, or SMS from a trustworthy source stating that "Antivirus ware will remove the virus from your device by downloading an anti-malware link given below," prompting you to click on the link, which will take you to another illegal website, potentially exposing your personal and financial information to the suspect.
5. SIM Swap Frauds
This scam is vulnerable to those who access anything on the internet with their phone numbers. As a result, scammers will easily activate a fake SIM card under the authentic users for fraudulent activities. On the whole, your phone number is the scammer’s as well.
One of the important elements of this scam is ‘two-factor authentication, where the OTPs (One-Time Password) that are sent to your phone number will be received by the scammers.
With enough data being collected from the users, the scammers will claim the users’ SIM cards from the mobile service under the excuse of being lost or broken. Consequently, the users’ SIM or phone number will be under the scammers’ control.
Skimming is a common scam and crime in several parts of the world. This is an increasingly often happening scam especially in public places, like ATMs, Point-of-Sale, and fuel pumps.
This scam occurs when devices are illegally installed in public places. The result of this scam includes using the users’ data to create debit and credit cards under their name and then stealing the victims’ money.
The most common scam under Skimming is Fuel Pump, where the scamming prop is hidden inside the wiring. Meanwhile, unbeknownst to the users, the data will be transferred to the scammers’ storage within seconds.
Vishing is also known as voice phishing. It is nothing but scam centers calling potential users to deceive money smartly. Telephone fraud involves tricking people into giving money or disclosing personal information when they answer the call.
The perpetrator of a vishing scam often pretends to be a member of a trusted company, institution, or government agency. Believing the credibility, the unwary victims are sometimes tricked into taking the impression that their computers are being infected and needed to install anti-virus software.
As a consequence, scammers will get into their software and extract data for their swindling endeavours.
8. Mobile Scams
As the name speaks, mobile scams are a range of scams that involve smartphones. Moreover, in this era of digitalization, everything from start to end is digitalized. Similarly, the scam is also digitalized. The above-listed scams- Mobile phone virus scams, SMS phishing, Voice mail scams, and One-ring scam are all part of mobile scams.
This type of scam is not rare or uncommon, it can take place anytime and anywhere, unless and until the user doesn't hold a phone. Furthermore, this digital age has made this scam even more happening, since all our data including bank details, emails, and other credentials are associated with our phones.
In this way, the scammers will be capable of accessing the victims’ data through their smartphones effortlessly.
Scamming has become a day-to-day crime in this technological age. According to the reports, half of the bank scams are done through smartphones. However, it can be avoided by taking proper precautions and not unnecessarily accessing sensitive information with the mobile phone.
As we all know, our bank accounts are linked to our mobile numbers followed by a ‘two-factor authentication’ feature, so it is quite uncertain to find the real scammer behind all the bank scams.
On the other hand, the only solution to dodge bank scams is to always contact the administrator of the respective bank irrespective of the caller, who has asked for your information via phone.
What are some of the common bank frauds in India?
Phishing, Pharming Scams, Technical Support Scams, Spoofing, SIM Swap Frauds, Skimming, Vishing, and Mobile Scams are some of the common bank frauds in India.
What is bank fraud in India?
Bank fraud is when a person illegally obtains money from the depositors possessing as the bank