The increasing prevalence of digital payment methods has correspondingly led to a significant rise in cybercrime. It is, therefore, essential to exercise vigilance and protect your personal and financial information from the myriad of scams that target online consumers.

“Specially during the festive season, retailers attract customers with time-sensitive offers that foster a sense of urgency, a phenomenon further intensified by social media platforms,” infoms Abbhinav R Jain, Co-founder and Chief Financial Officer, AdCounty Media.

Below are some important guidelines to consider for safeguarding your finances and avoiding fraudsters during this festive period.

1. Utilize Reputable Platforms: Engage only with trusted websites and applications. Refrain from clicking on promotional advertisements or pop-ups that redirect you to unfamiliar sources, as these may be attempts at phishing.

2. Activate Two-factor Authentication: Implementing two-factor authentication (2FA) provides an extra layer of security, ensuring that your account remains protected even if your password is compromised.

3. Choose Secure Payment Methods: “Prefer websites that facilitate secure transactions through digital wallets such as Google Pay or Apple Pay. By not entering your card information directly, you minimize the risk of hackers accessing your data,” says Jain.

4. Be Wary of Unrealistic Discounts: If an offer appears too advantageous, it likely is. Online fraudsters often create counterfeit websites or utilize social media profiles to promote products at suspiciously low prices to attract unsuspecting buyers.

5. Monitor Your Digital Presence: In today’s interconnected world, it is vital to be aware of where your data is stored. Utilize available tools to track your credit card usage and receive alerts for any suspicious activity.

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Precautions to take during Diwali and Dhanteras shopping

The landscape of Diwali shopping has undergone a notable transformation due to the rise of digital platforms; however, it is essential to exercise caution.

Ridhima Kansal, Director, Rosemoore, says, “When purchasing decorative items such as diyas, sweets, or electronics online, it is advisable to utilize reputable e-commerce websites. Be wary of fraudulent sites that mimic well-known Indian online retailers during the festive season. Always review seller ratings and remain vigilant regarding enticing Diwali ‘bumper deals’ that may circulate during economic downturns or through WhatsApp messages and SMS,” Kansal says.

During Dhanteras too, individuals may exhibit impatience and make hasty investment choices.

“It is crucial to remain prudent during this period and steer clear of gold investment schemes and cryptocurrency offers that promise unrealistic returns. Avoid clicking on links to investment platforms that claim to provide special Diwali gold rates or exclusive crypto deals. For consistent savings, resist the temptation of festive investment promotions and instead rely on trustworthy banks and financial institutions,” says Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited.

Raghunandan Saraf, Founder & CEO, Saraf Furniture, says, “Once the festivities of Dhanteras and Diwali come in, scams involving payments and cashbacks also rise. While doing UPI based payments for shopping, especially during the festive season, do not forget to verify the merchants’ ID and never disclose your UPI pin to anyone, even if he is a bank representative. During this season, scammers defraud sheep by pretending to represent banks and suggest these unlucky people special Diwali bonuses or cashback offers. Always bear in mind: the banks will never ask for OTP codes or telephone numbers with account numbers.”

Role of AI in prevention of scams

AI is instrumental in the prevention of scams. It possesses the capability to process vast quantities of data in real-time, enabling the identification of suspicious patterns and the flagging of atypical activities. Numerous e-commerce platforms utilize AI to uncover fraudulent transactions and employ AI chatbots to authenticate consumer identities.

Furthermore, “machine learning techniques can monitor user behavior, potentially allowing for the detection of fraud before it occurs. As AI systems continuously learn from incoming data, they can swiftly adapt to new scam strategies, thereby providing enhanced proactive protection. This positions AI as a vital partner in safeguarding consumers during the festive shopping,” says Jain.