8 Common Banking Scams and Why You Should Know About Them

Ishaan Chaudhary

After liberalization, banks must provide more services and adapt to the competitive market. In the current age of e-banking. Banking security and frauds are high. During this epidemic, online fraud accusations have increased. Blockchain has a robust security framework, yet it still gets hacked, like the $600 million incident in 2021 that tarnished investors' opinions. Many security recordings show bank robbers grabbing money in the open air. Even with robust detection and protection, financial fraud is frequent.


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1. Phishing

Phishing is a sort of cybercrime in which an attacker sends spam emails purporting to be from a legitimate company or organization in an effort to deceive a target into giving over confidential information. Phishing attacks may take many forms, including the dissemination of spam or the delivery of malicious programs like Ransomware directly to the user's computer. To add insult to injury, one kind of phishing is called "link manipulation," which is deliberately constructing broken links and URLs with misspelt words. Numerous emails urging you to "hit the following link to get the program" actually direct you to a fraudulent site.


2. Pharming Scams

As a kind of cybercrime, phishing has become more widespread. In contrast, "pharming" involves tricking consumers into visiting a malicious website or disrupting the DNS server software on a computer. Pharming, in contrast to phishing, does not attempt to deceive users into giving their personal information.

It's nearly ubiquitous in businesses that facilitate online financial transactions and store customer payment information. The term "pharming" is used to describe the practice of nurturing and acquiring sensitive information from users. Meaning those unfamiliar, "farming" is computer jargon for "replicating." Pharming is when a computer's DNS (Domain Name Server) software is used to replace a safe website's IP address with a malicious one. At last, the user is sent to a malicious URL.


3. Technical Support Scam

Customers with technical issues using online banking seldom turn to this final resort until all other options have been exhausted. When a client thinks they are talking to the correct people when they bring up technical issues, in the belief that they may be resolved; nevertheless, they are really talking to someone else entirely. If a con artist manages to trick you into granting them access to your computer, they have committed social engineering, a sort of fraud that allows them to steal your personal data.


4. Spoofing

Spoofing is deceptive because the fraudster makes it seem as if the communication is originating from a legitimate source. When you click on a link in an unsolicited phone call, email, or text message purporting to come from a reliable source (such as "Antivirus ware will remove the virus from your device by downloading an anti-malware link given below"), you may be redirected to a malicious website where your private information may be at risk.


5. SIM Swap Frauds

Users that enter their phone numbers onto websites are susceptible to this fraud. As a consequence, fraudsters may simply use stolen identities to activate counterfeit SIM cards. Total, the con artist now has your contact number as well. The OTPs (One-Time Passwords) sent to your phone number as part of "two-factor authentication" will really be received by the fraudsters. Scammers will utilize the information they have gleaned from their victims to falsely claim the victims' SIM cards as their own from the cell provider. The victim's SIM card or phone number will then be compromised. Several reputed institutes now offer the cybersecurity course in India.


6. Skimming

In many countries, skimming is a frequent kind of fraud and criminal activity. There has been a rise in the prevalence of this kind of fraud at public terminals such as automated teller machines, point-of-sale terminals, and gas stations. When gadgets are placed in public areas without proper permission, this fraud is implemented. The victims' personal information is used to open fraudulent bank accounts and charge cards in their names. The Fuel Pump Scam is the most prevalent kind of Skimming, and the swindling prop is often situated in the pump's wiring. Meanwhile, in a matter of seconds, the data will be transmitted to the fraudsters' storage, all without the victims' knowledge.


7. Vishing

Voice phishing, or "vishing," goes by many other names. It's just fraudsters phoning prospective customers over the phone to con them out of money. The goal of telephone fraud is to deceive the victim into providing money or revealing private information. In a vishing scam, the bad actor often poses as a representative of a respectable organization. Victims are sometimes duped into thinking their computers are infected and that they need to install anti-virus software because they believe the convincing claims made. Therefore, con artists will be able to breach company systems and steal information for use in their fraudulent schemes.


8. Mobile Scams

Mobile scams, as their name implies, include a wide variety of fraud techniques that target mobile devices. Furthermore, everything is digitalized nowadays from the ground up. The con is similarly computerized. All of the frauds described above, such as those using viruses, text messages, voicemails, and a single ring, belong to the larger category of mobile scams. This is not an unusual or uncommon fraud; it may happen whenever and everywhere a person is in possession of a mobile device. In addition, the prevalence of this fraud has increased in the digital era because of the close connection between our phones and our financial information, our emails, and other forms of identification. Through this method, fraudsters would have easy access to victims' private information stored on their mobile devices.


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Ishaan Chaudhary
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