Online fraud: what you need to know to protect yourself
According to the Delhi High Court, there is an urgent need to combat online financial fraud since it threatens the economic stability of the nation. Doing so will safeguard individuals while also ensuring the viability of online financial systems. Justice Swarana Kanta Sharma stated that the public becomes increasingly unwilling to deal with digital systems when faith in online transactions is undermined, which can considerably restrict financial inclusion, innovation, and economic progress.
According to the National Crime Records Bureau (NCRB), cybercrimes in India in 2023 resulted in a staggering loss of ₹66.66 crore, with 4,850 reported cases.
What is online fraud?
Fraud that is committed using the internet is “online fraud.” Online fraud can involve financial fraud and identity theft.
In this article, Online Fraud” is used as an umbrella term to encompass financial fraud
The abuse of computers has also given birth to a gamut of new-age crimes addressed by the Information Technology Act, of 2000.
Type of fraud nowadays
- The sale of a non-existent service scam, also known as an advance-fee fraud or a service scam, typically involves a fraudster promising a service to a victim for a fee. Still, in reality, there is no service or product to deliver. In a non-existent service scam, fraudsters deceive victims by offering fake services like loans or job opportunities for a fee. Victims pay upfront charges, expecting the promised benefits, but receive nothing in return. The scammers vanish or demand more money, leaving victims financially harmed and unable to recover their losses. These scams often involve elaborate deception tactics, such as fake documentation, and prey on individuals’ desires for financial gain or career advancement. Vigilance and scepticism are vital defences against such schemes.
- “Impersonation Scam” or “Social Engineering Scam” Scammers first research their targets, gathering information from social media or public records. They create a credible persona by spoofing email addresses, phone numbers, or social media profiles. Initiating contact through email, phone, or social media, they use tactics like urgency or threats to manipulate victims into providing sensitive information, money, or access to accounts.
How can you prevent yourself from this?
- Keep personal information personal. Hackers can use social media profiles to figure out their passwords and answer those security questions in the password reset tools. Lock down your privacy settings and avoid posting things like birthdays, addresses, mother’s maiden name, etc. Be wary of requests to connect with people you do not know.
- Shop safely. Before shopping online, make sure the website uses secure technology. When you are at the checkout screen, verify that the web address begins with https. Also, check to see if a tiny locked padlock symbol appears on the page.
- If you receive a phone call out of the blue about your bank account, government benefit or a tax debt – hang up Locate the organisation’s contact number, often available on their website, and call that organisation directly to verify their claim.
- try to verify their identity by valid means or instead of discussing on the phone try to engage in real life or video call so you can get assurance
What to do if it happens?
Notify Your Bank or Payment Service Provider: After ceasing communication, contact your bank or the payment service provider (such as Paytm, Google Pay, or PayPal) immediately. Explain the situation in detail and request them to block your account to prevent further unauthorised transactions. Most banks have a 24-hour customer service number specifically for reporting fraud. Early reporting increases the likelihood of recovering your money.
Change Your Passwords and Secure Your Accounts: Meanwhile, change the passwords for all your online accounts, especially those related to banking and financial services. Use strong, unique passwords that combine letters, numbers, and special characters. Enable two-factor authentication (2FA) where possible to add an extra layer of security. Also, if you use online banking, block your debit or credit cards.
How to report an online scam
The Indian government has set up dedicated cyber crime cells in major cities to handle such complaints. You can also file a complaint online through the National Cyber Crime Reporting Portal (cybercrime.gov.in). Provide all relevant details, including transaction IDs, emails, and any communication with the scammer.
