What to do if you lose money to a bank fraud

With the number of bank frauds increasing, you need to be doubly careful about your transactions, especially online ones. According to the Reserve Bank of India’s (RBI) annual report for 2018-19, the number of cases of frauds reported by banks increased by 15% in 2018-19 on a year-on-year basis, with the amount involved rising by 73.8% from ₹41,167 crore in 2017-18 to ₹71,543 crore in 2018-19. Frauds related to advances (90.2%) were predominant while frauds relating to card, internet and deposits constituted only 0.3% of the total value of frauds in 2018-19, amounting to ₹220 crore.

Most fraudsters start with obtaining some basic details like your phone number and name of the bank where you have your savings account or have a credit card from. Next they make calls and try to gather information that is important to make online transfers or payments. “Some of the ways financial fraud can be perpetrated is through phishing or spoofing attacks, malware or spyware, SIM swap (original SIM gets cloned and becomes invalid, and the duplicate can be misused to access the user’s online bank account to transfer funds), credential stuffing (compromising devices and stealing data), man-in-the-middle attacks during online payments or transactions, identity theft, card cloners or readers at ATM machines and as simple as imposters calling up unsuspecting individuals and asking for their personal banking details,” said Arpinder Singh, partner and head, India and emerging markets, forensic and integrity services, Ernst & Young LLP.

We tell you how to avoid falling prey to such frauds and what’s in store if you do get cheated even after your best efforts.

How to avoid it?

Office Newz

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