Tag: online frauds

Bajaj Finance Urges Customers to Stay Safe Against Online Frauds on Electronic Platform During Festive Season, BFSI News, ET BFSI

Personal Finance

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Bajaj Finance Limited cautions its customers and the public at large to stay vigilant against online loan frauds and other types of frauds on electronic platform during this festive season. As a part of the Cybersecurity Awareness Month, the company issued an advisory to its customers over email and on their social media platforms, urging them to stay alert of the growing incidences of cyber frauds and how to stay safe online.

With festive season around, consumers are more prone to availing instant loans, shopping online, seeking various discounts and cashback offers which make them vulnerable to fall into the trap of cyber frauds. So, it’s critical that consumers remain alert and informed about frauds such as (including, but not limited to) fake ads on social media, website impersonation, identity theft, fake job offers, vishing, phishing, sim swapping, UPI frauds, fake loan approval letters, ‘too good to be true loan offers’, suspicious phone calls, phone calls by impersonators claiming to be representatives of Bajaj Finance Ltd., suspicious links received on SMS or on various messenger platforms etc. (“frauds on electronic platform”).

The awareness advisory is a part of the continuous efforts of the company towards educating customers about frauds on electronic platform, the modus operandi of fraudsters who target unsuspecting users to carry out loan frauds and cyber security scams and the necessary safety measures to follow to avoid getting duped.



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Private banks see 21% jump in frauds as online frauds rise, BFSI News, ET BFSI

Banking & Finance

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The public sector banks seem to have learnt a lesson from the multi-billion dollar Punjab National Bank scam and worked to put their processes in order.

The number of frauds in PSBS fell 34% during fiscal 2020-21, more than double the overall 15% decline in frauds in the banking system. Interestingly, frauds in private banks rose 21% during the period, according to the RBI annual report for fiscal 2021.

The share of PSBs in total fraud value shrank to 59.2% this fiscal, from 80% in fiscal 2020, while it rose to 33.5% in the case of private sector banks this fiscal. In fiscal 2020 private banks had reported a 18.4% share.

The RBI in its annual report stated that a total of 7,363 frauds worth Rs 1,38,422 crore were reported. These frauds have been reported across all banks and areas of operations.

Online frauds rise

The number of frauds in the online space shot up 34.6% at the end of March 2021. About 99% of the total frauds reported in the fiscal year gone by were from the advances category in value terms. However, the value of frauds in the advances category remained almost the same as compared to the last year and the incidence of frauds in the advance category have come down over the previous year.

In value terms, private banks reported a rise of 35% y-o-y in frauds during FY21, and PSBs have reported a decline of 45%.

The average time lag between the date of occurrence of frauds and the date of detection was 23 months for the frauds reported in 2020-21. However, in respect of large frauds of Rs 100 crore and above, the average lag was 57 months for the same period. In terms of area of operations, frauds have been occurring predominantly in the loan portfolio (advances category), both in terms of number and value, RBI said.

Reducing frauds

In the current fiscal, the central bank is looking at enhancing the fraud risk management system, including improving the efficacy of early warning signal (EWS) framework, fraud governance and response system. This includes augmenting the data analysis for monitoring of transactions, introduction of dedicated market intelligence (MI) unit for frauds and implementation of automated unique system generated number for each fraud.

For an account declared fraud, banks have to make 100% provisioning of the outstanding loans, spread over up to four quarters.



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How to dodge QR code scamsters

Personal Finance

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In the backdrop of the pandemic, online/digital payments have received a big boost. QR (Quick Response) codes have emerged as a convenient way to promote contactless payments but the lack of necessary knowledge on how to spot a fraudulent QR code is costing people dear.

According to reports available publicly, every fifth payment fraud today involves QR codes. Banks, e-commerce websites and digital security experts are warning people.

Here we discuss how the QR code scam happens, and what you should do to avoid getting cheated.

A code like no other

A QR code is a type of matrix barcode. It consists of black squares arranged in a square grid on a white background.

The code has information embedded in it. The patterns within QR codes represent binary codes that can be interpreted to reveal the code’s data.

QR codes are easily read by smartphones. All you need is a camera and an app to read the code. Many use the QR code route to pay for purchases at merchant outlets by simply scanning the QR code using an app.

QR codes are extremely easy to generate. But, what’s hidden in them is very difficult to identify.

So, a scamster can lie about the actual information behind the QR code and dupe people.

These days the popular way of deceiving people with QR codes involves targetting individuals who are trying sell or buy goods online. Examples are a person in Bengaluru ordering wine online and losing ₹1.6 lakh, a person uploading a classified to sell his mobile but ended up losing ₹80,000.

Modus operandi

Assume you want to sell off an item online such as a sofa for ₹20,000. Days pass and no real leads come. You are disappointed and wonder if you need to lower the price. Suddenly, the phones rings and the scamster will pretend to be an interested buyer. They will aim to win the trust of the seller by agreeing to buy the item near the quoted rate ₹18,000.

Then, the cyber criminal will send ₹500-1000 to the seller, calling it a ‘test transaction’. Since the seller actually receives money in their bank account instantaneously, the trust factor rises mani-fold.

Pay attention because this is the moment when the fraud will happen. The fraudster will create a QR code with a high amount (the balance i.e. ₹17,000) and will share it with the seller through WhatsApp, email and other platforms. They will say scanning the QR code will result in the seller getting the balance amount instantly.

After sharing the QR code, the scamster will ask the seller to select “Scan QR code” option on the app and select QR code from phone photo gallery. After scanning the QR code from photo gallery, the seller is asked to ‘proceed’ with the payment.

After clicking on “Proceed”, the seller will enter UPI PIN. That’s when money will actually be deducted from their account.

Ways to avoid scam

The biggest problem with a QR code is that humans can’t read it. So, it’s critical to pay close attention while making payments or transactions using QR codes.

First and foremost, if you are receiving funds/payment you do not need to give any PIN/special number for any QR code transaction. If somebody is asking you to enter a PIN to receive funds, be very suspicious.

A QR code payment transaction involves some steps and it is important to notice the smallest details. Don’t proceed with a transaction if you suspect anything is out of place.

It is best to pay or receive money using QR codes only in secure and familiar environments. Don’t do a QR code transaction if you don’t fully trust the counter-party.

Many a times victims understand that money is being debited from their bank account when they do a QR code transaction.

However, due to social engineering tactics used by scamsters, they dupe victims by saying ‘it was a mistake’ and then try their luck with another similar transaction. A Delhi-based politician’s daughter in this way was duped of ₹34,000 in two simultaneous transactions.

One of the ways to identify a scamster will be the unusual hurry to complete the transaction. Before engaging in any payment transaction, verify the credentials of the counter-party.

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