Sharvari trapped in the lure of a job on Instagram, Sharvari (name changed) was looking for a work-from-home job. Seeing an advertisement on Instagram, she clicked on the link and filled in her basic information. The next step asked for bank details. After giving the information, she received an OTP, which she entered on the website.
Soon after, a payment request for “registration fees” came on her PhonePe account. Without suspecting anything, she accepted it. In no time, money was deducted from her account and her PhonePe account was blocked.
RBI report: Increase in banking fraud, According to RBI’s 2024 report, in April Between May and September, 18,461 cases of banking fraud were registered, with a total loss of ₹21,367 crore. This is much higher than last year. In 2023, 14,480 cases were registered during this period, with a loss of only ₹2,623 crore.
What is banking fraud?
In banking fraud, cyber criminals try to steal money or sensitive information by fraud. These criminals use emails, messages, phone calls and fake websites.
According to cyber security expert Tushar Sharma, “Fraudsters take advantage of technical and human vulnerabilities. They target people through social engineering, phishing attacks, keylogging software, and fake banking apps.”
Common banking fraud methods
Sharma explained some of the major methods of banking fraud:
- Phishing and spear-phishing: Stealing sensitive information by sending fake emails and messages.
- Mobile banking fraud: Stealing money by bypassing two-factor authentication (2FA).
- ATM skimming: Using IoT devices to steal card data.
- Fake loan fraud: Trapping people through fake loan offers.
Prevention measures
HDFC Bank’s Manish Agarwal suggests the following precautions:
- Check the schemes on the official website.
- Do not click on unknown links.
- Check your bank statements regularly.
- Report any suspicious activity immediately.
- Do not share KYC data, bank credentials, OTP, and PIN.
What to do if you become a victim of fraud?
- Immediately inform your bank and request to stop the transaction.
- Register a cybercrime complaint at cybercrime.gov.in or call 1930.
- Check your CIBIL report.
Expert opinion on digital security
Tushar Sharma said, “With the convenience of digital banking, risks also increase. These frauds can be prevented only through collective efforts between customers, banks and regulators.”
Vigilance and awareness are most important to avoid banking fraud. By understanding new technologies and methods of fraud, you can ensure your financial security.
