Financial scams have been a recurring concern in India, affecting individuals and the economy. These scams often involve fraudulent schemes, manipulation of financial systems, or deceptive practices that exploit unsuspecting investors and consumers.
Such scams not only result in financial loss to the victims but also reduce confidence in the financial system. In 2023, India saw bank fraud totaling Rs 302.5 billion, down from Rs 1.3 trillion in 2021. forbes, Although this is a positive change, citizens still need to exercise caution. A study found 69% of online fraud cases were reported in 2021 and RBI data revealed scams worth Rs 60,414 crore in 2021-2022, underscoring the challenges of financial scams in India.
The financial landscape is plagued by a variety of fraudulent activities, such as:
UPI Scam Update:
The growth of UPI transactions brought convenience but also attracted fraudsters. UPI-related fraud poses a major threat, with reported cases exceeding 95,000 in the financial year 2022-2023. A staggering 55% of all digital payment fraud is linked to UPI transactions. Identity fraud, especially account-related scams, dominate, accounting for 65% of all financial fraud in 2021.
Prevention: Avoid clicking on unwanted links or responding to unknown messages. Verify UPI transactions carefully, double-checking details before approving.
Digital Banking and Credit Card Fraud:
The popularity of digital transactions has led to an increase in online banking and credit card fraud. In fiscal year 2023, the banking system recorded 13,530 fraud cases, of which about 49% fell under the digital payments – card/internet – category.
Prevention: Monitor bank statements regularly, enable transaction alerts and never share OTPs or sensitive information. Install reputable antivirus software to protect against online threats.
Overview of Bank Fraud:
Bank fraud, which includes loan fraud and unauthorized transactions, saw a decline in 2023. However, between 2014 and 2023, Indian banks detected around 65,017 frauds, resulting in a staggering loss of Rs 4.69 lakh crore.
Prevention: Be wary of unwanted communications, update passwords regularly and enable multi-factor authentication for online banking. Verify the legitimacy of financial institutions before making important transactions.
QR Code Scam Warning:
QR code scams are on the rise, especially in Bengaluru, where 41% of cyber crime incidents were attributed to QR code scams. Incidents related to QR code fraud increased between 2017 and May 2023, indicating an evolving form of cyber crime.
Prevention: Scan QR codes only from trusted sources. Be wary of unsolicited QR codes received via messages or emails. Update mobile security software regularly.
Investment Scam Warning:
Fraudulent investment schemes continue to lure individuals with promises of unrealistic returns. The massive Chinese investment fraud of Rs 712 crore exposed in Hyderabad is a stark reminder of the risks associated with such scams.
Prevention: Do thorough research on investment opportunities, verify the company’s credentials, and be skeptical of schemes that promise unrealistic returns. Consult financial advisors before making significant investments.
Part-Time Job Scam Alert:
Online scammers exploit individuals by promising easy part-time work. As of April 30, 2023, Delhi Police received 467 complaints, showing a significant increase compared to 32 complaints registered in 2020.
Prevention: Research and verify the validity of the job offer. Avoid sharing personal or financial information with unknown entities. Use reputable job portals and be wary of high-paying part-time jobs that sound too good to be true.
Courier Scam Advice:
A new courier scam targeting young individuals has emerged, with 163 cases reported in Bengaluru in 2023. This scam preys on recipients’ fears, emphasizing the importance of verifying unexpected communications from courier services.
Prevention: Verify unexpected communications directly from courier services. Do not share personal information or conduct financial transactions without thorough verification. Beware of unsolicited calls claiming to be from courier companies.
Malware Warning:
Fraudsters use deceptive tactics to trick consumers into installing malware, compromising devices, and gaining unauthorized access to financial information. Cyber crimes on digital platforms account for approximately 57% of all fraud incidents in India, emphasizing the critical need to enhance cyber security measures.
Prevention: Install reputable antivirus and anti-malware software. Avoid clicking on suspicious links, especially those received through emails or messages. Update device software regularly for better security.
As financial scams are on the rise, people need vigilance, caution, and thorough verification to avoid falling victim to these malicious activities.
