As April Fool’s Day has arrived, it’s a timely reminder that not all tricks are harmless. In today’s digital age, scams are everywhere, ready to trap people who aren’t careful. Imagine this: you receive an urgent phone call from someone claiming to be a bank representative, informing you of suspicious activity on your account. Flustered and alarmed, you provide them with your personal information, believing it to be the bank’s protocol. Little do you know, you’ve just fallen victim to a sophisticated scam.

According to data from the Reserve Bank of India (RBI), financial frauds in India have been on the rise, with bank frauds exceeding 302.5 billion rupees in the fiscal year 2023. This staggering figure reflects a concerning trend of escalating fraudulent activities targeting individuals’ hard-earned money. From UPI-related frauds to QR code scams and investment schemes promising unrealistic returns, the landscape of financial fraud in India is diverse and getting more sophisticated by the day.

The fintech industry is leveraging technology and collaborative partnerships with regulatory bodies to upscale fraud prevention. Here is how you can protect yourself from falling prey to financial scams.

Spotting the Scammers

The scenario above is just one example of how scammers operate, preying on our vulnerabilities and exploiting our trust. They employ various tactics, from impersonating authority figures to creating fake websites and emails, all with the aim of duping innocent victims out of their hard-earned money.

Also Read: Key income tax changes effective April 1: All you need to know

Unsolicited Contact: Beware of unsolicited emails, phone calls, or messages, especially if they come from unknown or suspicious sources. Legitimate organizations typically do not reach out to individuals without prior consent.

Pressure to Act Quickly: Scammers often create a sense of urgency to pressure you into making impulsive decisions. They may claim that you need to act immediately to avoid dire consequences or miss out on a lucrative opportunity.

Requests for Personal Information: Be wary of requests for personal or financial information, such as passwords, PINs, or account numbers. Legitimate entities rarely ask for such details, especially over the phone or via email.

Promises of Unrealistic Returns: Be cautious of offers that promise guaranteed returns or high profits with minimal risk. If an investment opportunity sounds too good to be true, it probably is.

Unsolicited Tech Support: Beware of unsolicited tech support calls or messages claiming that your device is infected with a virus or malware. Scammers may try to gain remote access to your device or trick you into installing malicious software.

Requests for Payment or Gift Cards: Be cautious if a stranger asks you to send money or gift cards, especially through unconventional methods such as wire transfers or cryptocurrency. Once sent, it’s nearly impossible to recover the funds.

Threats or Intimidation: Scammers may resort to threats or intimidation to coerce you into complying with their demands. Remember that legitimate organizations do not use such tactics to communicate with customers.

How to Stop the Scammers

To protect yourself from financial scams in India or anywhere else, it’s crucial to adopt proactive measures. Here are some practical steps you can take to safeguard your finances:

Stay Informed: Keep yourself updated about common scams and fraudulent tactics prevalent in the digital landscape. Valuable resources from government agencies and financial institutions can help you recognize and avoid potential scams.

Verify Identities: Be cautious when sharing personal or financial information. Always verify the legitimacy of anyone requesting sensitive details. Legitimate entities typically do not ask for passwords or PINs via email or phone.

Be Cautious with App Downloads: Exercise caution when downloading apps, especially those related to FinTech services. Ensure that the apps you download are compliant with regulations set forth by regulatory bodies like the Reserve Bank of India (RBI) to mitigate the risk of downloading malicious software.

Create Strong Passwords: Generate robust and unique passwords for your online accounts, including banking and financial services. Utilize a combination of letters, numbers, and special characters to enhance security.

Enable Two-Factor Authentication (2FA): Whenever possible, activate 2FA for your online accounts. This additional security layer requires a second verification step, such as a text message or app notification, to prevent unauthorized access.

Exercise Caution with Emails and Calls: Be wary of unsolicited emails or calls, especially those requesting personal or financial information. Verify the legitimacy of senders or callers before responding, and avoid clicking on suspicious links or attachments.

Protect Your Devices: Keep your devices updated with the latest security patches and antivirus software. Regularly update your operating system and applications to mitigate vulnerabilities exploited by fraudsters.

Secure Wi-Fi Connections: Avoid conducting sensitive financial transactions over public Wi-Fi networks. If necessary, use a Virtual Private Network (VPN) to encrypt your internet connection and safeguard your data from potential interception.

What to Do When Stuck in a Fraud

In case you find yourself a victim of a financial scam, it’s essential to act quickly and follow the necessary steps to mitigate the impact. Contact your bank to report the incident, file a complaint with the National Cyber Crime Reporting Portal, and notify local law enforcement authorities. Gather evidence and documentation related to the fraud, and monitor your accounts closely for any further unauthorized activity.

Remember, staying alert to these signs can help you outsmart the tricksters and ensure you’re not the one left with an April Fool’s surprise when it comes to your finances. While fintech players are diligently working to protect consumers and implement necessary measures, it’s essential to remain vigilant and proactive in safeguarding your financial well-being.

(By Sonali Jindal, COO & Co-Founder – RING. Views are personal)