Cybercrimes are very prevalent in the modern day. With the rise of internet banking, cybercrime criminals have come up with different ways to commit fraudulent activities. In minutes these criminals can drain your bank account.

Just like in Jamtara, the cybercriminals used to trick people into giving their personal information, now it has become more seamless and untraceable. These cybercriminals either counterfeit like an authoritative person or use software that can hijack information and many more other fraudulent activities.

With these rising crimes it is important to take necessary safety measures to prevent getting fooled by these criminals.

Let’s read on about how to prevent online banking frauds, what are some common types of online banking frauds and some tips to protect yourself from it!

Online Banking Fraud: A Common Phenomena

Online Banking Fraud is the type of fraudulent activity committed by cybercriminals through online technology to illegally steal money from one person’s bank account. They use data of victims to carry out banking frauds and other forms of frauds.

With the rise in technological demands, online banking frauds are becoming a common phenomenon. Sometimes it takes more than a minute for victims to realize what is happening to them. It is essential for you to understand the crimes and take preventive measures, so you don’t fall prey to these crimes.

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Types of Banking Fraud

1. Identity Theft

It is one of the most common types of online banking frauds. The cybercriminals impersonate the victims to steal money from them. It refers to the criminal use of anyone’s name, personal identification number or any such primary number.

Under section 66 of the IT Act, 2000, if anyone misuses the electronic signature, password and unique identification features of any other person, then they are guilty of Identity Theft and could be punishable for the same.

They can be held in prison for either 3 years or they have to pay a fine of maximum Rs.1 lakh.

2. Malicious Software

It is also known as Malware. Malware is software which infiltrates the computer system of the victim to get unauthorized access to their banking information. It invades the system and intentionally harms the users or their system by using software code like viruses, worms and Trojans.

3. Phishing

Phishing is used by fraudsters to trick the victim. They primarily send emails to the victims looking like a legit financial institution. They ask for personal information such as username and passwords. Because the user trusts the source of the mail, they tend to share the information.

4. Vishing

Vishing is the fraudulent activity that is conducted over voice mail. The fraudsters pretend to be employees of legitimate financial institutions. The main purpose of vising is to obtain confidential information, personal data and passwords & PINs.

5. SIM Swap

Fraudsters use social engineering techniques to steal victims' mobile number and port it to fraudsters sim. Through this they can bypass two-factor authentication and hamper important banking information

6. Automatic Transfer System

Automatic transfers to their own account with the knowledge of the victim. It might happen at regular intervals. It is executed automatically through malware.

7. Fake Apps

Cybercriminals design fake apps that are a lookalike of a credible app to lure the victims. Fraudsters trick the victims into putting their banking credentials in the fake app to misuse it. These apps generally contain malware, and they can hamper the data which is feeded into the system.

Visit DigiLawyer.ai to learn about other kinds of online banking fraud.

Tips to Prevent Banking Fraud

1. Two-Factor Authentication

Ensure that your bank account has enabled two-factor authentication to add an extra layer of security. Along with the providing password, you will receive OTP to access your account. It combines something you know, like your password, and something you have, like your smartphone.

2. Update Passwords Periodically

Keep changing your password on regular intervals. Try to prevent using general passwords which can be easily guessed. Use strong and unique passwords.

3. Do not use Public Wi-Fi for Financial Transactions

Prevent conducting any financial transactions through public Wi-Fi as the data can be tampered easily. These connections are not private, and fraudsters can easily access your data. You can use your smartphone’s hotspot to create a private network for any important work.

4. Do not reveal your Banking Details through call or SMS

You should not share any personal information with any person claiming to be a bank personnel member. Generally, banks don’t reach out to customers through calls or SMS.

5. Regular Bank Statements Assessment

You should check your banking statements regularly to look out for any suspicious transactions. If there are any suspicious statements that you were not aware of, then you should go to the authorities to find a solution to these problems.

6. Use Anti-Malware Software

You should use antivirus and anti-malware protection on your device to protect from any malicious attacks. These viruses can steal important information from your device.

Conclusion

Online Banking Fraud is one of the most common cybercrimes committed. They are of many types such as identity theft, malware, vishing and phishing, etc. The crime rates are rising with the speed of light. To prevent these crimes there are certain steps that an individual can take.

There are multiple security measures that you can take such as two-factor authentication, using strong passwords, avoiding public Wi-Fi for financial transactions and regularly monitoring your bank statements to reduce your chances of fraudulent activities happening to you.

To know more about cybercrimes, banking frauds or any tips to prevent these malicious practices, DigiLawyer is your go to friend. DigiLawyer can help you with any queries related to online banking fraud.