According to a Assocham report, around 65% of the total fraud cases reported by banks are technology-related frauds which are committed through an internet banking channel, ATMs and other payment channels like credit/debit/prepaid cards, whereas advance-related frauds accounted for a major proportion (64%) of the total amount involved in fraud.
With a rise in banking technology, there are chances that security of transactions can be compromised as even hackers have become tech savvy.
Here are 6 types of latest financial frauds happening in the system:
Phishing is a type of fraud where a fraudster tries to acquire sensitive banking information such as usernames, passwords or credit card details with an aim to misuse the information.
Phishing can be done via email messages, websites, and phone calls to steal money from customers.
Card skimming is a fraudulent activity that involves skimming of the details on the magnetic stripe from ATMs, debit and credit card through illegal means.
Skimming can be done by replacement of the card reader with a fake card reader that then records all of the information on different plastic cards in use as they pass via the skimmer.
Smishing is a type of fraud which can happen to mobile banking users. When a mobile banking user receives a fake text message asking for bank account details from a hacker.
It is a fraudulent activity where a fraudster makes a call to divulge personal and financial information over the phone. Sensitive data collected are then used to commit identity theft and financial fraud using the same.
SIM Swap Fraud
Sim Swap is a method where fraudster replaces your SIM with new SIM card which is issued on your name and your mobile number.
Once he gets your number, the fraudster will be able to complete banking transactions since he will be able to get OTP & alerts which are mandatory for doing any financial transactions through a bank account.
In this type of fraud, the criminal will fetch personal details such as DOB, phone number, addresses, and account or card numbers all build up an identity which will be sued to commit fraud.