As more and more people are diverting to online modes for making financial transactions, the odds of ATM/debit cards/credit cards and banking frauds are on the rise. Before discussing the ways of protecting from online frauds, let’s understand the different types of internet frauds:

Phishing 

It is the activity of opening a malicious email that seems to be from a bank saying to click on a link that directs you to a cloned bluffer site. Typically, such emails imitate or counterfeit the logo, signature, etc. used by the bank to communicate with you. This activity is spreading. We must know about this and phishing meaning clearly so that we can protect ourselves against this. 

Pharming 

It tricks the domain name server that redirects a website user to the fraud website. As soon as the consumer reaches the cloned website, cybercrooks can copy his login credentials to use them for unwittingly transfer of money from the bank to the malicious servers.

Vishing

Vishing is the latest twist of scammers. They use a phone number instead of email like phishing. If you get trapped in the call, you will lose your personal or account information. 

Identity Threat

Crooks obtain bank details, security pins or IDs like the license of the victim to do an illegal activity like fraudulent credit card or take loans in the name of the victim. 

ATM Skimming

This is the most common fraudulent activity. Through card skimming, fraudsters illegally clone an ATM card. They use skimmer devices, hidden cameras to capture information on the magnetic stripe on the card and the pin code you entered. 

Viruses – Malware and Botnets

Viruses are hazardous computer programmes that can be installed on any computer without the consent of the customers. It slows down the system processing and thereby collects all the valuable information from the system.

There are many other practices a fraudster can use to dupe you. The way to fight with such danger is proper awareness of such frauds and seeking online fraud protection. 

Let’s see how you can protect yourself from hacking techniques. Following are some of fraud prevention steps that you can take:

  • Use only trusted secured wireless networks for a financial transaction.
  • Keep your devices up to date. You can turn on automatic updates. Update your web browser and operating system as well.
  • Use latest antivirus software to defend against viruses and other online threats.
  • Set strong passwords using different case letters, numbers, and special characters. Change banking passwords frequently.
  • Do not open any attachments or links or pop-ups from unknown sources. 
  • Forward phishing emails to the Cyber and Information Security (C&IS) Division, Ministry of Home Affairs, RBI and the bank impersonated in the email.
  • Avoid posting birthdays, addresses, mother’s maiden name, etc on social media handles. 
  • Secure your internet connection with a password. 
  • Do not connect to public Wi-Fi networks to make a financial transaction.
  • While shopping online, make sure the ecommerce portal uses secure technology. Examine the web address begins with https and a tiny locked padlock symbol is there. 

Why is insurance cover important?

Do you know every two out of ten online customers are becoming victims of banking frauds? There has been an increase in internet banking fraud around the world. In a realistic view, it is very difficult to catch fraudsters because he may be sitting in a distant place even in foreign while committing the offence. Data reveals that only a small percentage of customers recovers the lost money in banking frauds. Here the need for an insurance cover arises that protects you from such fraudsters. 

One of the best insurance covers available in India is Wallet Care offered by Bajaj Finserv. Following are some of the features and benefits of the Wallet Care plan:

  • Get coverage up to Rs. 2 lakh against card fraud with a nominal premium of Rs. 599.
  • Block all debit/credit cards with a single call- 24/7 Service
  • Emergency travel and hotel assistance 
  • Mobile SIM Blocking
  • Hassle-free PAN card replacement
  • Online application process 

Summary

Online financial fraud shows the flipside of technology breakthroughs. Even after so many warnings and advisory activities by RBI, online fraudsters are active and customers are becoming victims continuously. In this article, you will read about the most common online fraud attacks and some of the best practices to protect your confidential information.