Boost Your Knowledge: BFSI Scams Unveiled
BFSI scams are perhaps the most overlooked factor that causes serious economic damage to this sector every year. People all over the country report all kinds of fraud related to banking and other related sectors that put a strain on the country’s law enforcement and cause a chain of problems. To top it all, BFSI scams create a deep absence of trust in common people when it comes to investing as they fear similar financial losses. This directly brings losses to the sector, which poses an existential problem for the growth of this industry.
It thus becomes extremely crucial to counter these problems by spreading public awareness of such scams so that they remain cautious while dealing with fraud. Here are some of the most common BFSI scams that everyone must be aware of.
Phishing and ‘OTP’ scam
A big percentage of BFSI scams belongs to phishing scams. People often receive fraudulent calls, messages, or emails wherein they lie about their identity and trick common people into giving their confidential personal information, such as bank passwords and the OTPs issued by banks for they make using your bank account details. The reason why phishing scams occur most commonly is that it is easier for scammers to gain access to your phone number and reach out to you via calls or text messages. Often, these scams are hidden in suspicious links which ask you to fill in your private details, which can be blatantly misused. Hence, it is crucial for everyone to remain careful of mysterious calls or text messages and never engage with them without confirming their source.
Check-cashing scam is among the lesser-known BFSI scams. In this case, an individual may approach you outside of the bank and offer you their checks and ask you to cash into your account, claiming that they do not have a bank account of their own. They may even ask you to give them cash of your own and keep the check to yourself. However, the check carried by them are forged and fraudulent in nature and must never be accepted in the first place. Even if you do not pay them your own cash in advance, the fake check can still be held against you and your account and can get you in trouble. Hence, you must beware of such scammers and not get into such circumstances, even as an act of help.
Employment BFSI Scams
As the name suggests, a person or a company may approach you for a job. During or before the interview, they will ask for your personal details, which are essentially required during the recruitment process. However, some may even ask you to share confidential account details like your bank passwords. You must make sure not to pass on such sensitive information to anyone, even your own employer. While basic details like bank account numbers and other identification documents may be required, no details that can give anyone access to your account must be shared with anyone. As an additional safety measure, one must take care to cross-check the authenticity of the organisation that approaches you for work. You may find it tricky to identify an employment scam, but doing your homework will always shield you from such situations.
Government Imposter BFSI Scams
As the name suggests, a fraud may approach you, posing as a government official, and ask you to divulge key information about your bank account and other verification details that can give them access to your account. They usually use the tactics of intimidating their victims by calling them and narrating false charges about them and hence getting their bank account details by instilling fear. In other cases, they tell people they have won prizes and get them to divulge their personal information to scam them. To avoid such a scam, you should always verify their information and try to confirm their identity before sharing any details. You can ask the person claiming themself to be a government official to show their ID card, and they are legally obligated to confirm the agency they work for.
Automatic Withdrawal BFSI Scams
Most people use automatic withdrawals these days as it ensures smooth payment of bills . It becomes difficult to keep track of every pending bill, and since failing to pay basic but important bills like electricity, water, , gas, insurance, and so on will create unnecessary hassle, most people tend to have automatic payment systems. However, scammers have found a way to use your basic account details to automatically withdraw money from your account. They may call you up, saying that you have won or qualified for a prize, and they need the numbers at the bottom of your check to verify your account details. Once they have that information, they prepare a Demand Draft using that information. Since a Demand Draft does not require your signature, they use it to draw money from your account.
Charity scam is another commonly occurring scam all over the world. People approach you for donations for charitable causes that are hoaxes. These hoax causes can be of all kinds – whether it be donation for a patient suffering from deadly diseases, or education and food for the poor, or religious events and causes, and many more. Because these causes require larger sums for donation, they may ask for your bank details and then draw money from your account. Just like in every other case, you must verify the originality of these charitable organisations before making any donation or sharing any details since these scammers usually approach using a fake identity and/or name of their so-called NGOs or organisations.
In a world where BFSI scams loom large, knowledge truly is power. By staying informed about the common tactics employed by scammers, you’re arming yourself against potential financial risks. Remember, phishing calls and suspicious emails may be lurking, but with vigilance and caution, you can keep your personal information safe. Whether it’s a government imposter or a charity scam, verifying identities and researching organizations before sharing details can make all the difference. Automatic withdrawals and check-cashing schemes are on scammers’ radars, but by keeping an eye on your accounts and being cautious with your personal information, you can thwart their efforts. By being alert and proactive, you’re not just protecting your finances – you’re taking a stand against BFSI scams and securing your financial future.
- 1 BFSI scams
- 2 Charity scam
- 18.104.22.168.1 In a world where BFSI scams loom large, knowledge truly is power. By staying informed about the common tactics employed by scammers, you’re arming yourself against potential financial risks. Remember, phishing calls and suspicious emails may be lurking, but with vigilance and caution, you can keep your personal information safe. Whether it’s a government imposter or a charity scam, verifying identities and researching organizations before sharing details can make all the difference. Automatic withdrawals and check-cashing schemes are on scammers’ radars, but by keeping an eye on your accounts and being cautious with your personal information, you can thwart their efforts. By being alert and proactive, you’re not just protecting your finances – you’re taking a stand against BFSI scams and securing your financial future.
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