This is how fraud happens
The scam starts with a simple automated voice call to your mobile number. Through this automated call, you are informed that a certain high value transaction, say Rs 200,000 etc., was made using your credit card. Press #1 to confirm or #9 to speak to bank representatives and report this “supposed” transaction. Taking advantage of your fear of losing money, the scam scammers I hope you press #9 and when you do, that’s when the scam becomes a fraud.
When you press the number 9, a person claiming to be from the bank issuing your credit card offers to help you with the supposed high-value transaction. The scammer makes up a false story for you. He may tell you that this particular transaction (Rs 200,000) happened a few minutes ago at a retail outlet in a city and that he has called you to verify whether you have made this transaction or not. The scammer may even go a step further and inform you that another high-value transaction, say Rs 150,000, happened a few hours ago using your credit card.
The scammer will try to convince you that you have already lost Rs 150,000 and that if you do not take immediate action, you will lose another Rs 200,000. The scammer, who is supposedly a representative of the bank, will also pressure you to file a complaint immediately to stop the alleged transaction of Rs 200,000. Naturally, you will be a little anxious knowing that you have been scammed and that someone is using your credit card for high-value transactions. Sensing your fear and anxiety, the scammer will use the opportunity to help you with the fraud. He will now offer to help you file a complaint on your behalf with the bank and the police.
“The fraudster is basically trying to convince the customer that the fraud detection worked and they are trying to help them with the transaction. The narrative is one of fear and immediacy. They are building a story that they need to act quickly or else the transaction will go through. Since the amount is large, this also creates some fear in the customer’s mind,” says Ashok Hariharan, co-founder and CEO of IDfy, an integrated identity platform.
Sharing his experience, Somasroy Chakraborty, a senior communications professional based in Mumbai, said on LinkedIn, “This afternoon, my lunch was suddenly interrupted by an unexpected phone call. An automated voice informed me that Rs 45,515 had been spent on my credit card. “Please press #1 to confirm, or #9 to report.” I immediately pressed #9 to report the incident. Mukesh Chauhan, the customer care executive, went through the routine process of confirming my name and date of birth before explaining that my credit card had been used minutes earlier at a mobile phone store in Chennai. He further informed me that the card had been used at a mobile phone store in Chennai. [XX3345]”The debit card, which I never received, was issued to me on 19th July 2024 at the Andheri branch of the bank and has already been used for transactions worth Rs 1,46,554. Don’t worry sir! We will block this card immediately and initiate an investigation. In the meantime, please file a CBR with the cyber crime cell of the Mumbai police,” Mukesh said to reassure me. He shared his employee code. [CCS40328] and branch [Church Gate] Before transferring the call, the call was connected to the cybercriminals’ cell phone, but there was so much background noise that I could barely hear. The police representative advised me to continue our conversation on WhatsApp, as I couldn’t hear anything. It was then that I realized that I was being scammed under the pretext of an imaginary fraudulent transaction with an imaginary card and I cut the call.”
How to prevent this type of banking fraud: key aspects to keep in mind to avoid scams
According to Vikram Babbar, partner at EY Forensic & Integrity Services – Financial Services, here’s what you should do to prevent this type of fraud:
- Avoid clicking on unknown links and never reveal your banking OTP to anyone.
- Be alert when making digital transactions and verify the authenticity of the transaction details.
- Obtain phone banking numbers directly from your bank’s official website or documents to avoid falling victim to fraudulent numbers posted by scammers on search engines.
- Seek guidance from a tech-savvy family member or friend, especially if you are older and unfamiliar with digital banking practices.
- Create a separate bank account exclusively for online transactions, including digital payments, UPI and e-wallets, and maintain only a modest balance to minimize financial risk.
Shikha Goel IPS, Director General of Police (DGP), CID and Women Safety Wing, Director, Telangana Cyber Security Bureau and Telangana FSL, says, “If you receive a video call from a purported police officer, remember that no police officer or any other law enforcement agency ever makes a video call. Also, if this officer shows you his ID, note down the details and call the police control room and ask them to verify the details. This is because scammers posing as police officers might try to scam you.”
According to Babbar, who is also the president of the Association of Certified Financial Crime Specialists (ACFCS) in India, people in certain age groups are the target audience for such scams. “Certain vulnerable groups such as the elderly, students and those less tech-savvy may not be aware of the existence of such scams or lack the technical knowledge to identify them.” fraudulent calls“Scammers often target customers who have stressful jobs or who have tight deadlines to meet, as they may be more susceptible to deception during times of stress. Additionally, scammers craft convincing stories that appear credible. They may gather detailed information about a customer, such as their profile, age, transaction habits and account details, from bank records to make their pitch seem more convincing,” he says.
What are banks doing to combat this problem?
According to Anis Ahmed, Chairman of the Middle East and North Africa Chapter of the Association of Certified Financial Crime Specialists (ACFCS) and host of The Fraud Fellas anti-fraud forum, “Some large banks in the Middle East and Asia use robocalls as a security measure to alert customers about potential fraudulent transactions. However, it is important to distinguish these legitimate calls from the fraudulent ones used by fraudsters to trick victims. While fraudulent robocalls may not be a global problem, they are still a prevalent tactic employed by criminals. Banks and institutions are increasingly aware of the threat posed by fraudulent calls and are implementing various measures to combat them. For this MO, awareness is the most effective way, providing customers with information on the most common fraud tactics and how to protect themselves. Additionally, some institutions implement multi-factor authentication and biometrics to enhance account security.”
“The problem of scam calls has been emerging in India of late. I have seen several cases where scammers have managed to scam people to the tune of several crores of rupees. I would like to inform people that no law enforcement officer ever asks for money transfer to any account for any purpose, not even to verify suspected involvement in any crime or illegal activity,” Goel said.
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