How many times have you gotten an SMS informing you that you have won a 1 crore lottery? Or that your bank account requires immediate KYC verification?
Isn’t that often the case? This is nothing more than a banking scam!
Banking fraud and scams have been rampant in India for many years. Despite extensive government and regulatory initiatives, the occurrence of banking scams has not decreased.
Nowadays, scammers use the web (particularly the dark web), malware, phony profiles, and other tools to unlawfully hack into a person’s bank account and steal their hard-earned money in seconds.
This blog has been written to highlight the numerous forms of scams that occur in Indian banks, as well as the solutions to these frauds.
Top Indian Bank Frauds
Bank Account frauds is a collection of some of the most common bank frauds in India.
| Sr.No | Bank Account Scams |
| 1. | Scams involving automatic withdrawals |
| 2. | Scams Using Phishing |
| 3. | Scams involving charities |
| 4. | Scams involving Overpayments |
| 5. | Scams using cheques |
| 6. | Scams Using Government Masqueraders |
Now, let’s go over some of the most typical financial scams, including internet banking scams-
Scam 1 – Scams involving automatic withdrawals
Automatic withdrawal fraud is one of the most prevalent types of bank fraud in India. In such a hoax, you may receive a phone call, SMS, postcard, or other notification that you have won a prize or an interesting offer. The fraudster will next demand your bank information and the digits listed underneath your cheque.
When the fraudster obtains the financial information, they place it in a demand draft and file it with the bank. When the bank gets it, it will transfer the funds from your account to the fraudster.
Scam 2 – Phishing Scams
Phishing scams are often carried out using means such as SMS and e-mail directed to a URL. Scammers use this method to send clickbait messages that seem like official bank communications. Such links may need you to provide personal information such as your cellphone number, account number, OTP, and so on.
After obtaining your personal details, the scammer will quickly get into your account and take your money.
Scam 3 – Charity Scams
Charity scams use emotive tactics to persuade gullible individuals to contribute money. Fraudsters take advantage of people’s sympathies by imitating charity organizations in this type of scam.
People are easily duped by such schemes because they immediately appeal to their emotions. People who are misled end up giving to such false charity and losing money to crooks.
Scam 4 – Scams involving overpayments
Such frauds are frequently aimed at merchants who conduct their business online.
Scammers act as purchasers and deliver a (fake) cheque as payment for a price that is more than it should be. They will then request a reimbursement of the difference via online means.
However, because the original payment was fraudulent, the seller now loses both the refund money and the price of the commodity sold while repaying.
Scam 5 – Check-Cashing Scams
This is yet another emotionally charged fraud that thieves frequently engage in.
Here’s an example: Mr. John was just leaving the bank when he was contacted by someone asking if he could assist him cash a check because he didn’t have an account there. John agrees to assist him since he can deposit the check and get cash from the bank. The cheque did not clear after the clearing procedure, and the monies were held against John’s account.
This is one of the most typical bank fraud incidents in India, with several victims.
Scam 6 – Government Fraud Scams
Impersonating a government official to commit fraud in the financial industry has become extremely widespread. In this case, a fraudster phones and claims you’ve won a lottery and must pay fees or taxes in order for the reward money to be processed further.
In response to refusal, the fraudster threatens to file a tax/fee complaint. People frequently fall for such false statements and end up paying the amount.
Due to a lack of understanding, this scam has affected many people across the country.
How Can Bank Fraud Be Prevented in India?
It is critical to prevent banking fraud. It not only results in monetary loss, but also in a sense of distrust in banking operations.
Here’s how to identify and report bank fraud in India:
Methods for Preventing Bank Fraud in India
Do Not Disclose Any Personal Information
Never give someone your account numbers, passwords, social security numbers, credit card details, or any unidentifiable OTPs unless you trust him/her.
Complaint Form
If you fall victim to a scam, never neglect to register a bank fraud report.
Never cash a check for someone else.
You should never cash a check for someone you don’t know.
Pay Attention
Before clicking on any link or phoning any unknown number claiming you have won a financial award, carefully read and scrutinize the received messages, e-mails, and conversations.
Double-check
Always check with your bank before cashing unsolicited checks.
Never ever pay to redeem a prize.
Never pay money to redeem a lottery or prize.
Do Not Talk on the Phone
Never engage fraudsters over the phone, especially if they pose as government authorities.
Be Wary of the Internet
Examine the URL, brand name, spelling, and other details before clicking on any emails or links, since they may include malware.
Take Caution When Making a Call
You should never provide critical information over the phone unless you have complete trust in the individual. Check your surroundings as well before sharing any information.
Final Remarks
Offline and online banking fraud has existed in India for many decades. Despite numerous instructional programs by the government and several banks, consumers are frequently victims of bank fraud.
We have discussed the most typical bank scams in India, but there are many others to be aware of.
Finally, we encourage that you be vigilant, never reveal your bank or personal information with a third party, properly analyze the communications you receive, and avoid engaging in any activities that appear malevolent.