6 ways to protect yourself from cyber fraud threats

Convenience meets in today’s digital age financial needsbut it also brings with it the looming threat. cyber fraud. In FY2021, domestic payment fraud recorded by regulated businesses in India was around 100 million. ₹542.7 crore; Approximately in Fiscal Year 2023 ₹2537.35 crore. 9,926 cases of fraud related to digital loan app recorded in FY23 reported.

Bankers are vulnerable to a variety of scams as cybercriminals target individuals in need or tend to fall for fraudulent financial offers. To get a loan, borrowers deliberately bind or hide important information.

Unscrupulous lenders make the situation worse by charging exorbitant interest rates, offering loans without paperwork, or exploiting consumers’ personal information. In India alone, banks recorded more than 9,000 complaints of banking and credit fraud last year; ₹60,000 crore.

Common credit fraud schemes and how to prevent them include:

Loan fee scam: Be wary of scammers who promise loans at incredibly low interest rates and charge upfront fees for processing, documentation or insurance. Generally, legitimate lenders deduct processing fees from the loan amount; Therefore, never pay transaction fees upfront, especially using unconventional payment methods such as gift cards or cryptocurrency.

Fake loan offers: Scammers may contact borrowers via email, text or phone with attractive loan offers while requesting sensitive personal information. To avoid falling victim, you should only do business with reputable financial institutions and avoid sharing sensitive information unless the legitimacy of the lender has been verified. Legitimate lenders use automated data verification platforms to ensure the authenticity of loan offers.

Identity Thief: Protect yourself from identity theft by regularly monitoring your financial statements and credit reports. To avoid requests for repayment of loans you never used, immediately report unauthorized loans to your bank and credit bureaus.

Credit turmoil: Unscrupulous lenders may encourage loan refinancing, often with hidden fees. Understanding refinancing terms and costs can help you avoid unnecessary debt and financial stress. Partnering with transparent financial institutions that provide clear terms and conditions can protect against unnecessary financial burdens.

Guaranteed loan scams: Be suspicious of scammers offering “guaranteed” loans without a credit check or income verification. Before extending a loan, legitimate lenders conduct comprehensive credit evaluations, so avoid loans that do not require documentation or a credit review.

Stolen loan documents: Protect your personal documents such as copies of your PAN card and pay slips to prevent impersonators from taking loans in your name. Monitor financial statements regularly for unusual activity and destroy sensitive information before disposal. Real financial institutions perform digital document verification to ensure that the credentials presented are genuine, providing an additional layer of security.

Attention is very important

Protecting yourself from credit fraud today requires unwavering vigilance. Verify the authenticity of lenders, review loan documents and avoid upfront fees for loan approval. By remaining informed and vigilant, borrowers can reduce the risks associated with cyber fraud and secure their financial well-being in an increasingly interconnected world.

Borrowers can minimize risks and secure their financial well-being by partnering with forward-thinking financial institutions that leverage modern technological solutions.

Ankit Ratan is the Co-Founder and CEO of Signzy