The advent of digital banking has made managing finances easier than ever before for both individuals and business entities. Over the past few years, it has gained immense popularity and has become the go-to option for banking transactions.
While digital banking offers the convenience of banking from the comfort of your home, it also comes with the risk of digital banking fraud. Cybercriminals are constantly evolving and devising new techniques to scam unsuspecting individuals and siphon off their hard-earned money.
If you use any digital banking medium to carry out any kind of banking transaction, you must be aware of fraud’s, how you can be duped, how to avoid it and how to protect yourself. So, without any further ado, let’s get started.
Common Digital Banking Frauds
The key to avoid becoming a soft victims is to be aware of the common types of digital banking frauds. These include :
It is one of the most common forms of digital banking fraud. In this form, antisocial entities or digital banking fraudsters steal your personal and important banking-related information, such as your username, password etc., and impersonate you.
- Use of malicious software
Online fraudsters use malicious software, also commonly known as malware, specially designed to damage your computer system and gain unauthorised access to your digital banking credentials. Once they access the banking credentials, they use it to steal money.
Another common digital banking fraud is phishing. In this type of fraud, fraudsters trick the victims into sharing their confidential information. This is usually done through an email that appears to be sent from a bank or other legitimate financial organisation.
The email may ask you to provide information such as your username, password and other account details. If you receive any such mail, you must immediately inform the bank about such emails and also resort to reporting bank fraud to the cybercrime authorities.
As the number of people using mobile banking has increased significantly, cybercriminals are using fake and malicious applications that are designed to appear to be the same as legitimate banking applications.
These fake applications may deceive you into providing personal information. In most cases, they contain malware and can also harm your system.
You may not have heard of ‘Vishing’, but you may have experienced or known this type of digital banking fraud. In this type of fraud, the fraudsters try to deceive the victims into sharing their banking-related information through a phone call by claiming to be a representative from the bank. They can then use this information to carry out any transaction or siphon off your money.
If you notice any such unauthorised transfers, you must immediately file a complaint against fraud transactions with the bank and the cybercrime authorities.
SIM swap is a type of digital banking fraud where cybercriminals deceive the victim’s mobile service provider and trick them into transferring the victim’s mobile phone number to a SIM card thefraudsters possess. Once they have access and control of the victim’s phone number, they can use it to bypass any layers of security, like the OTP or the two-factor authentication measures, to gain complete access to the victim’s banking account and carry out unauthorised transactions.
How to prevent digital banking fraud?
Now that you know about the different ways you can be scammed and the methods cybercriminals use to commit digital banking fraud, you must also be aware of the different ways to prevent yourself from being a soft victim of such fraud.
Whether you use a net banking portal or mobile banking application to carry out online banking transactions, make sure that you set a strong and robust password for all your online accounts. Avoid using generic passwords that can be easily guessed, such as your date of birth, name, and surname.
It is better to use a combination of alphabets (in both capital and small letters), numbers and special characters for the password. Also, make sure to update the password regularly, at least once every six months. This is one of the simplest and effective ways to protect yourself from digital banking fraud.
- Use the two-factor authentication security measure
Today, as digital banking frauds are becoming increasingly common, most banks offer two-factor authentication security measures to all their digital banking and mobile banking users.
It adds an additional layer of security to your online banking transactions. It typically involves using two layers of security measures to authenticate the user, including a password and an OTP (one-time password) sent to your registered mobile number or fingerprint.
Access to the bank account or any banking details will be granted only if you pass this dual layer of security that identifies and verifies the user.
- Be wary of suspicious emails and links
You must be wary of the email that you may receive asking you to provide personal information or urging you to click on certain links. Most of the time, such emails are phishing emails, and if they contain any attachments, do not download them. Such emails can steal your personal information, and you may become a victim of digital banking fraud.
When you are outdoors or away from home, you may connect to public Wi-Fi sources. However, it is advisable to avoid doing any online banking activities while connected to such sources, as most of them are unsecured, and your confidential data can be intercepted by hackers and fraudsters.
- Be careful of unsolicited calls
You must always be sceptical of unsolicited phone calls you may receive for personal or banking information. The legitimate banks will never make such calls or ask for any confidential information. So, avoid divulging any such information on call or message to anyone.
Conclusion
Being safe from money transfer scams, debit/credit card frauds and other digital banking frauds are easier than you imagine. All you have to do is be aware of the different kinds of online banking frauds and be careful about divulging personal information online or through calls and messages.
Considering the safety and security of banking customers, reputed banks in India, like South Indian Bank, have put advanced security measures in place so that customers’ accounts are safe.
Disclaimer: The article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of The South Indian Bank Ltd. or its employees. The South Indian Bank Ltd and/or the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial/non-financial decisions based on the contents and information’s in the blog article. Please consult your financial advisor or the respective field expert before making any decisions.