Sounds familiar? Scamsters are coming up with new tricks to defraud their victims. They are even using AI to identify victims and their weaknesses. Young graduates are being given fake job offers. Middle-aged parents are being threatened with police cases. Retirees are being sweet-talked into divulging financial details on the pretext of helping them with KYC updation.
Also Read: Scam alert! 10 common tricks used by scamsters
Cybercrime has assumed industrial proportions in India. The RBI, banks and other organisations have been crying themselves hoarse about the perils of giving away bank account details or falling for lucrative investment schemes, but their warnings have fallen on deaf ears. In the first five months of 2024, some 9.5 lakh complaints were registered with the National Cyber Crime Reporting Portal, averaging one complaint every 14 seconds. Indian citizens lost Rs.1,750 crore in these scams during the period.
Jodhpur-based medical student Dinesh Kumar (see picture) was one of them. When Kumar got a text message saying he needed to update the KYC details of his bank account, he did not suspect any foul play. “I had not used that account for a few months. So I thought the KYC could have expired,” he says. He clicked on a link that came with the message and filled in his bank details. Within minutes, the scamsters cleaned out the entire Rs.21,000 balance in the account.
Giving away bank details is a big mistake. “The customer must never share confidential information,” says Manish Agrawal, Senior Executive Vice-President, Credit Intelligence and Control, HDFC Bank. Kumar compounded the mistake by not filing a police complaint. If you have been cheated, you must immediately inform the cybercrime cell and register a formal complaint. “You should file the complaint within three days of the incident because that’s the time within which at least something can be done,” says Ranjan R. Reddy, Founder of Bureau ID, a company that helps BFSI companies in identity verification and fraud prevention. You must also inform your bank, so they can take steps to recover the money. “The sooner you do this, the greater are the chances of your money coming back,” says Reddy.Delhi-based finance professional Aarti Chopra (see picture) can vouch for that. When she wanted to book a hotel in Goa, she clicked on a promotional link and landed on a mirror website. She called on the given number, booked a room and paid the amount through the link sent to her. When she didn’t get any confirmation, she contacted the hotel, only to be told that they had not received any payment.Timely action can help
Stung by the loss, Chopra immediately swung into action. She tried to lodge a complaint online, but couldn’t do so due to a glitch in the portal. Undeterred, she visited the nearest cybercrime police station and filed a complaint. Her efforts didn’t stop there. She also informed her bank about the incident and reached out to senior officials in the organisation. After a few days, her bank paid her the amount she had lost to the fraud. Incidentally, she still hasn’t heard from the police. “That’s very disappointing,” she says.
Chopra succeeded in recovering her money because she acted swiftly and escalated the matter to senior people in the bank. “Victims tend to keep quiet because they feel embarrassed or don’t want to do the legwork and paperwork required,” she says. Delay in reporting the incident allows the fraudsters enough time to withdraw the money from the bank account. “The masterminds are often operating from overseas. Even when an Indian perpetrator is found, the recovered amount is typically insufficient to compensate the thousands they’ve defrauded,” says Prashant Mali, President & Founder, Cyber Law Consulting.
Nobody is safe
Older people are soft targets for cybercriminals because they are not very conversant with technology. Even younger people, especially those who use the Internet extensively, are vulnerable. According to data from global security firm, Kaspersky, 34% Internet users in India were targeted by cybercriminals last year. The company detected and blocked 7.43 crore threats in India.
The best way to defend yourself is by following some basic rules. For instance, TRAI has clarified that disconnection of a phone service is done by the respective service provider, not the regulator (see graphic). The Central Board of Indirect Taxes and Customs (CBIC) has also clarified that customs officers never contact the public on phone, SMS, or e-mail for payment to private accounts.
Applying a little common sense also helps. Why would the income-tax department call to inform you about a refund and then ask you for bank details? “Your bank details are mentioned in the tax return filed by you. If somebody asks you for your bank details so that a refund can be credited, it is an obvious red flag,” says Sudhir Kaushik, CEO of tax filing portal, TaxSpanner.com.
You also need to be vigilant against fake offers that promise to make you rich overnight. Do you really think someone can offer 30-40% returns on an investment? “People are lured into investing through fraudulent apps and websites. They show fake data. Someone invested Rs.10,000 and got returns of 30-40% in a few days. It’s not real. These are just numbers on a screen,” says Ankit Chauhan, DCP, South District, Delhi Police. Chauhan says the scamsters target the vulnerable sections and go after them. “They exploit people’s desire for financial solutions to their problems,” he adds.
The scamsters don’t succeed all the time. Mayank Saini (see picture) managed to outwit the scamsters. He saw through their game when he was shown screenshots of returns made by investors. Instead of putting more money in the scheme, he pocketed the initial gains they had given to lure him further and closed the account.
