The digital revolution has made our lives a lot easier in various ways. There’s a grocery store app that lets you order your groceries for home delivery, there’s an app to find a date, and there’s even an app to find a personal loan. But with the ease of going digital, there are always risks. When it comes to taking out a personal loan, the biggest risk is the potential for fraud.
Here are some things you can do to protect yourself from online scams or fraud while:
How to Protect Yourself from online Scams & Frauds
Here are 9 simple steps to reduce your chances of a scam taking place when transferring a digital payment.
- Regularly monitor your financial account for fraudulent transactions.
If you provide payment information to the fraudster, take the necessary steps to prevent access to your account and protect yourself from identity theft.
If you used your credit card information in a fraudulent transaction, please contact your card issuer immediately to report the fraud.
Once you find fraud, please quickly contact your financial institution through the number on the back of your debit card or credit card to report the fraud to the bank.
Call your bank and credit card issuer immediately so they can close your accounts. File a fraud report or block a loan and report a theft of your information to the FTC’s identitytheft.gov.
The fraud alert will alert potential lenders to verify your identity before granting additional credit in your name.
- Do Not provide Personal Information over the Phone, email, or website
Do not provide credit card, billing information, or personal information over the phone, email, or website sent as an email link.
In addition, do not provide any personal or personally identifiable information to random callers, such as your full name, date of birth, or social security information, and learn how to identify fraud techniques.
Do not share your social security number or account information with anyone who contacts you online or over the phone. Protect your personal identification number (PIN) and password and don’t share them with anyone.
Thieves can use your information to fraudulently apply for loans, file tax returns, or obtain medical services. Once identity thieves have your information, they can try to apply for loans, make purchases, or obtain services on your behalf.
Using your identification information (last name, first name, address, social security number, bank information), fraudsters can use your information to apply for a mortgage or credit card in your name.
By using fraudulent messages that appear to come from reliable sources, scammers may try to obtain your personal information. Phishing scams use fraudulent emails and websites to trick users into revealing personal accounts or login information.
- Always sign out of websites before leaving
Always sign out of websites or secure areas of websites (such as online banking or on your mobile phone) where you used your ID and password to sign in.
Keep your financial records, Social Security and Medicare cards, and any other documents containing personal information in a safe place.
Taking steps to protect your personal information can help you avoid identity theft.
- Check out suspicious callers, arm yourself with information
In addition to taking steps to protect your information, it’s worth knowing how to find out if someone has stolen your identity.
Whether it’s the knowledge that you’re dropping bank statements or checking out suspicious callers, arming yourself with information can help reduce your risk when it comes to identity theft.
Armed with the right information and tools, you can protect yourself from identity theft and fraud.
- Always remain vigilant for potential scams
Ultimately, the best way to prevent digital credit scams is to always remain vigilant for potential scams by double-checking every loan offer, credit portal, and lender credentials, and paying attention to the red flags mentioned earlier.
While digital innovation has allowed lenders to offer loans quickly, always check to see if the service is legal. This can be done simply by checking the lender’s registration status on the RBI website.
Currently, most private banks, NBFC, and mobile applications offer personal loans in digital format.
However, you need to make sure they are safe by reporting abuse to scammers and finding a legitimate lender.
They can help you figure out if someone has used your identity to spend money in ways that are not reflected in your regular statements.
- Never transfer funds without verifying the identity
Never transfer funds without verifying the identity of the person requesting the data. Before providing personal information, ask how your data will be used and whether it will be shared with third parties.
Banking authorities never ask you for such confidential information. If you find yourself in such a situation, it is important to refrain from disclosing your banking information unless you are using a secure line of communication.
Therefore, if you intend to make online payments or share sensitive personal banking information, be sure to do so over a secure private connection.
You should never lose sight of your card when you use it to pay at a store, restaurant, or for home delivery.
- Make sure the app or website is safe
Make sure the app is safe as it is an easy way for scammers to search for sensitive information stored on your phone.
If you use laptops in public places or make mobile transactions over public Wi-Fi, it could be intercepted and your card details were stolen.
This is another popular hotspot for fraudsters to access your card information and PIN. Consider your money lost.
If you have chosen a secure site with a guaranteed exchange or return policy, you can write to the site with a detailed description of the fraud, product details, and payment method, without providing confidential information such as your bank account number, etc.
- Always check for secure networks
Customers should ensure that the web page has “https” in the address bar (“s” stands for secure), beware of phishing attacks, and avoid responding with personal information unless contact has been initiated.
Even if the website is listed, please check carefully if the company that owns the application is legal and registered with RBI or works with a non-bank financial company or NBFC registered with RBI or a bank.
RBI also cautioned potential borrowers against sharing copies of their KYC documents with unidentified people or unverified and unauthorized attachments, as they can be easily misused.
Banking authorities will never request confidential personal information or financial data via phone calls, emails, or text messages.
The personal information you share in your account (your identity, your workplace, date of birth, and your interests) may increase the likelihood of phishing attacks against you.
They can steal your name and address, credit card or bank account number, social security number, or health insurance account number.
Identity theft is when someone uses your personal or financial information without your permission.
- Be aware of Identity theft
Identity theft is the fraudulent collection and use of your personal or financial information, usually to make a profit at your expense.
Identity theft is a crime in which thieves steal your personal information (such as your full name or social security number) to commit fraud.
Here, scammers use malicious software designed to exploit user or computer intrusion techniques to obtain personal information about you, such as credit card numbers, social security numbers, passwords, and answers to security questions. Anyone who accesses a customer’s account without the customer’s permission and makes payments via Zelle, Bill Pay, or external transfers is considered digital bank fraud.