Banking Frauds Most Prevalent In India

Banking Frauds

Everyone who has a bank account is vulnerable to theft. Scammers use various ways to seep into your space. Here are some most prevalent frauds in India.

Automatic Withdrawal Scams

Automatic withdrawal scams rank among the most prevalent bank frauds in India. Scammers typically contact individuals via calls, SMS or postcards, claiming they have won a prize or received an exciting offer. They then request bank details, including cheque numbers, which they use to create a demand draft. Once the draft is processed by the bank, money is transferred from the victims account to the scammers.

Phishing Scams

Phishing scams are predominantly executed through SMS and email, often containing links. Scammers send deceptive messages resembling official bank communications, prompting recipients to click on links. These links lead to forms requesting personal information like account numbers and OTPs. Armed with this data, fraudsters gain access to victims accounts and swiftly siphon funds.

Charity Scams

Charity scams exploit peoples empathy by posing as charitable organisations. Scammers employ emotional appeals to persuade individuals to donate money. Victims, misled by these fake charities, end up losing their funds to the scammers deception.

Overpayment Scams

Overpayment scams target online sellers who receive fake cheques from fraudulent buyers. After sending a cheque for an amount exceeding the purchase price, scammers demand a refund of the difference. Sellers unwittingly refund the excess amount, only to discover the original cheque was fake, resulting in financial loss.

Cheque-Cashing Scams

In cheque-cashing scams, individuals are approached to cash cheques on behalf of others who lack bank accounts. Despite initial appearances of legitimacy, the cheques ultimately bounce, leaving victims liable for the funds.

Govt Masquerade Scams

Scammers impersonate government officials, claiming victims have won lotteries that require fees or taxes for processing. Upon refusal to pay, scammers threaten legal action. Many fall prey to these scams due to a lack of awareness, resulting in financial losses nationwide.