online fraud

What type of online fraud is growing?

Online fraud: While the year 2020 brought many changes to individuals’ living and working environments, it also resulted in digital transactions and payment solutions witnessing immense growth.

  • By July 2020, Indians transacted around 1.49 billion times through UPI. This translated into transaction values of more than $40 billion.
  • As per a report, cybercrime incidents in India increased by 63.5% y-o-y in 2019.
  • In this year, more than 44,000 such cases were reported as against 28,000 cases identified in 2018.

Due to the increasing frequency of such crimes concluded online, one must stay informed of the various methods used by hackers and cybercriminals to access confidential information or steal money.

online fraud
Online Fraud

Common types of internet fraud

An individual must watch out for the following types of internet banking fraud at all times –

1. Phishing scam

It is perhaps one of the common methods used to dupe unsuspecting internet users. In this type of fraud, individuals will receive lookalike emails of reputed companies or financial institutions.

In most cases, such emails contain a link that takes the user to a malicious webpage. Thence, you may be instructed to enter your credit card or bank account-related information on such pages. Doing so will enable these scammers to access your account immediately and withdraw funds without your knowledge.

2. Ecommerce fraud

Due to the immense popularity of online shopping, fraudsters have devised ways to cheat individuals using such platforms as well. Often, these entities or groups create fake shopping websites, where your desired product will be listed at the lowest prices. However, upon buying a product, shoppers will not receive this item; or, at the most, they may collect fake deliveries.

The easiest way to spot this kind of online fraud is to compare the prices of products listed on such a website to the prices on renowned eCommerce platforms, which often differs remarkably. Moreover, such fake platforms also lack a customer service number or the number provided is a fake one.

3. Lottery winning scams

It is another common online fraud, which involves sending emails or SMSs to unsuspecting individuals. These messages generally inform one that he/she has won the lottery under a recently coined scheme. However, to claim such prize money, an individual would need to provide certain information, including name, age, address, and banking details.

Alternatively, the email or message can ask the recipient to send a token sum of money to an account to start proceedings for lottery winnings reception.

  • According to a report, India ranks third among the top 20 countries when it comes to the sheer number of cybercrime victims.

Therefore, at such a stage, fraud prevention is the only viable long-term solution to ensure security. The Wallet Care plan offered by Bajaj Finserv under their Pocket Insurance & Subscriptions is ideal in securing one’s money and payment card information against such fraudulent activity.

Such an insurance plan ensures the following benefits to policyholders –

  1. Sizeable coverage, which ranges up to Rs.2 lakh.
  2. A 24/7 facility to block your compromised credit/debit card, which can prevent any transactions using its details.
  3. This comprehensive fraud protection plan is available at affordable premium rates of just Rs.599.

Picking fraudulent charges cover can help recover your losses resulting from such unauthorised activities. It not only protects individuals in cases of online frauds but also extends coverage to in-store breaches, ATM skimming, and others.

If you want to remains safeguarded against internet fraud in particular, owning a cyber security cover can also be highly beneficial. Such a plan covers policyholders against all forms of financial losses that can arise out of online scams.

Besides these measures to remain protected against online fraud, stricter cybercrime litigation by the Government of India can also help reduce the growing threat posed by such crimes. Until then, an individual must follow the proper precautionary steps to prevent substantial financial losses. The right insurance plan can act as a safety net, especially if one fails to identify such a scam and falls victim to it. Click to know how to make money online

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