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Payment Frauds

Types of Payment Frauds: Is there a need to Modification of Digital Banking

Types of Payment Frauds

Nowadays, people are shifting from traditional banking to digital banking. Significantly during Covid-19, digital banking has increased, and payments frauds are also rising these days.

Types of Payment Frauds Is there a need to Modification of Digital Banking

What are the payments fraud?

Payments fraud means false or illegal transactions which are done by cybercriminals. Digital transactions have increased these days, so hackers are trying to steal data from users to steal money.

Payment fraud methods

Digital payment frauds are rising because people are shifting towards digital banking, which is easy to use and has a lot of benefits.

Several payments frauds are given below:

  1. Fraud through OTP and UPI PIN
  2. Phishing Scam
  3. Ransomware Attack
  4. Suspicious Apps

1. Fraud through OTP and UPI PIN

OTP Scam: OTP is a common way to steal money through stammers. You know very well that you need a One Time Password (OPT) to complete a transaction online. That OTP sends via bank on your registered mobile number linked to your bank account. As the OTP is verified, then the payment will be complete.

That is why scammers try to convince users to share their OTP, which comes from the bank on their mobile. As they successfully persuade users to share OTP, they quickly transfer money from their accounts.

Have you ever heard or received a call about ” we are calling from so and so bank, your debit card is going to expire so that we will update your card? Please give us your card number, CVV number, and OTP.”As users share their information, they debit money from their account.”

UPI Scam: Scammers use UPI to steal money from users’ accounts. To make UPI payment fraud, fraudsters send a money request UPI link to the user. If a user clicks on that link and inserts UPI PIN to authorize, money will automatically be debited from the account.

“Scammers send a message that you have won this much money from so and so. To claim this money, click on the link, insert UPI PIN to authorize, and money will transfer to your account.”

2. Phishing Scam

Phishing fraud is also a different way of stealing money from unaware people. Hackers send an unauthorized payment link to claim the money. This link could be like the original. When a user opens it, that link is directed to mobile payments apps, and options could select any app to debit money. The money is automatically deducted from the account as the user allows it.

3. Duplicate Apps

There are a lot of duplicates or suspicious free apps that are stealing your important data stored on the mobile. You should always use trusted apps and keep in touch with google news about suspicious apps news.

4. Ransomware Attack

Ransomware is malicious software (malware) used to access or steal the data of users or businesses.

Payment fraud methods

How to prevent payment frauds

Never Share Sensitive Information: Never share OTP, PIN, Debit Card details etc. Banks never ask about OTP PIN.

Use Trusted Websites for Shopping: Always use trusted websites to buy online. Before opening any website link, check the website’s URL (website link name). Is it correct or not? There are a lot of fake websites with similar designs.

Keep aware of the latest payment fraud news.

If you do transactions, make you aware of new methods of payment fraud in the market. Always see news blogs of antivirus websites; they give updates about malware.

Conclusion

We should be aware of payment fraud, and we should never share sensitive banking information. In the current scenario, everything’s going digital, so digital payment methods should be secure and safe for all.

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