Many people receive phone call, mail or SMS saying that their bank account needs some urgent KYC verification and in the absence of verification the account will be blocked. This is nothing but a banking fraud. Frauds and scams in India have been prevalent for years now. Despite numerous efforts from the government and regulating authorities the number of banking frauds haven't been reduced yet now with the advent of AI and Deep fake a new dimension is being added in such activities

These days scammers are making the most of the web especially the dark web, malware, fake profiles etc. to illegally hack into a person's bank account and swindle their hard-earned money in seconds.

This writes up highlights various types of frauds being practised by unscrupulous elements in banks in India. Ways are also suggested as to how you can prevent them from happening

Some of the common baking frauds happening in India are listed below.

• Automatic withdrawal scams. are amongst the most common Bank frauds in India.

• Phising scams

• Charity scams

• Over payment scams

• Check encasing scams.

• Government proxy scams.

Now we will discuss in details of the common banking frauds including the internet banking frauds as well.

Automatic withdrawal scams:

In such a scam you might receive either a call, SMS or mail etc. that you have won a prize or an exciting offer. Next the scammer will demand the bank details and ask for the numbers mention below your cheque. The moment the scammer gets the banking details they put it in a demand draft and file with the bank. Once the bank receives the same, it will transfer the amount from your account to the scammers account.

Phishing Scams:

These are mostly done via mediums such as SMS and email directed to a link. Through such fraud, scammers send clickbait messages that resemble official bank messages. Such links may ask you to fill in personal information including your mobile number, account number and OTP etc. After gathering your personal information, the scammer will hack into your account and steal your money in no time.

Charity scams:

These are emotional ways to influence innocent people to donate their money. Through such scam fraudster takes the benefit of people's sympathy by impersonating as charitable organizations. People often fall for such scams as they directly trigger emotions. Misled people end up donating to such fake charities and lose their money to scammers

Over payments scams:

Such scams are often targeted towards sellers operating their business online. Scammers often pose as buyers and send off a cheque (fake) as their payment for a price that is higher than it should be. Next, they will demand a refund of the difference through online mode. But since the original payment was fake, now while repaying the seller ends up losing the refund money and the price of the product sold.

Cheque enchasing scam:

This is another emotion triggering scam that crooks often undertake. There is an example to shed light on this. One Mr. sunil was coming out of the bank and was suddenly approached by a person asking if he if he could help him cash a cheque as he doesn't have an account in the bank Sunil decides to help him as he can deposit the check and withdraw cash from the bank. Post the clearing process the check didn't clear and the funds are held against Sunil's account. This is one of the most common Bank fraud cases in India that has trapped many victims

Government imposter scam:

Frauds in banking sector by impersonating a government official has been quite common. Herein a scammer calls up claiming you have won a lottery that requires some fee or tax payment to process the prize money further. On denial the scammer threatens to file a complaint for non-payment of tax/ fees. People often fall for such fake claims and end the paying the sum. This fraud has happened to numerous people across the country due to less awareness.

How to prevent banking frauds in India: Preventing banking frauds is crucial. Not only does it lead to loss of money but a sense of distrust in banking operations too.

Here is how to spot and report bank frauds in India.

• Don't share your personal information such as your account no, passwords, credit card no’s or any other OTP with anyone.

• Always file a complaint of the fraud with in the stipulated time if you fall prey to any fraud.

• Never cash a cheque for a unknown person.

• Be attentive, read an examine the received messages, email, chats properly before clicking on any link or calling any unknown number claiming you have won a prize.

• You should always verify unsolicited cheques with your bank before enchasing.

• Never pay any sum to redeem prizes for any lottery or prize.

• Do not engage over the phone, never engage scammers on the call even if they identify themselves as government officials.

• Be cautious on the internet, before clicking on any Wapp, email and SMS links and examine the URL, brand name, spelling etc. as the same may be malware.

• Be careful over the call, you should never share sensitive details over the phone unless you trust the person. Also check your surrounding before you share any information.

Banking frauds have been persisting in India for many years despite several educational initiatives from the government and many banks people often fall prey to bank frauds through offline and internet banking. Here we have covered the common banks scams that happen in India but there are many more that may happen so one should be careful about what has been stated above. We would recommend you to stay attentive, never share your bank account, OTP, card no, CVV or personal details with the third party. Always interact through the official site of the bank and always read before acting.