Financial Fraud: The digitalisation of financial services has brought immense convenience to people allowing them to transact from anywhere at any time. However, digitisation has also paved the way for financial scams that are getting more sophisticated every day. Scammers have mastered the art of manipulation to deceive people, preying on their anxiety. These fraudsters trick individuals into thinking their bank accounts or credit cards have been compromised. They then exploit this fear, manipulating their victims into sharing sensitive information or making payments that lead to devastating financial losses.
A recently published whitepaper titled ‘Fear, Fraud, and Finances: 6 Ways Scammers Manipulate Your Mind & How You Can Defend Yourself’, highlights the common tactics scammers use to manipulate people, one of which is manipulation and authority. Let’s explore how this tactic is deployed and what you can do to prevent becoming a victim of it.
Authority & Credibility
Scammers exploit fear to manipulate victims into impulsive actions by posing as authority figures, such as banks or law enforcement officials. To appear credible and gain the victim’s trust, they use fake credentials and complicated, technical jargon, compelling the victim to act without verifying identities. They often reach out via phone, text, or email, warning of dire consequences like compromised accounts or serious accusations, creating a sense of urgency. This panic can cloud one’s judgment, leading victims to share sensitive information or transfer money to resolve the perceived threat.
Here is a typical scam scenario: Priya receives a call from someone posing as a bank official, warning her that her account is at risk. Exploiting her fear, the scammer requests sensitive information under the guise of "helping." Unaware, Priya shares her bank details and loses her money.
How to Prevent Falling for Such Scams
If you are approached with urgent financial issues, stay calm. Verify the information independently by calling up your bank and checking the sender’s email, address, and domain against official sources. The Reserve Bank of India, as well as banks frequently issue notifications warning people that no legitimate institution will ask for sensitive details like OTPs, PINs, or passwords. If you receive such a call, hang up and contact your bank using official contact details from their website or your account statements. Avoid clicking on suspicious links in texts or emails, as they may lead to phishing sites designed to steal your information.
What to Do If You Have Been Scammed
If you’ve fallen victim to a scam, act immediately - contact your bank to block your account, card, or payment method. Ensure you register your complaint with the bank and provide all relevant details of the scam. Remember, time is critical in such cases – act now to protect your finances.
By understanding how fraudsters operate and staying vigilant, you can protect yourself from falling prey to their manipulative tactics. Remember to never share sensitive financial information with anyone, and always verify details before you act.
The author is the CEO of BankBazaar.com. This article has been published as part of a special arrangement with BankBazaar.