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Here's How to Protect Your Money from Online Fraud

If you are using digital payments, you are at risk of online fraud. Be aware of the types of fraud and practice simple ways to protect your money

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DQINDIA Online
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Bluebugging

Amidst restrictions on movement and closure of banks, the coronavirus pandemic has hastened digital adoption in India. A large number of people have been introduced to the world of digital payments. They are using digital payment methods—credit cards, internet banking, and mobile apps—to pay utility and shopping bills, buy groceries online, deposit school fees, pay for subscriptions, and so on. As more and more people use digital avenues for payments, there is a greater risk of exposure to online fraud.

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Card not present fraud

Cyber criminals are quick to pounce on opportunities to make money quickly. The coronavirus has given them multiple avenues to exploit the increased traffic on the internet in a myriad of ways. They are extensively using social engineering to trick people into sharing their account or credit card details, which are then used for fraudulent transactions. Since the cyber criminal just needs to key in your credit card details to make a digital payment, he can use it at anywhere he wills. This is popularly known as card not present fraud.

To protect yourself from this form of fraud, do not share your credit/debit card details with anyone. There are instances, where cyber criminals have tricked people on the pretext of helping them make digital payments. They use software to remotely access the victim's device and steal details to use later. In other instances, cyber criminals pose as representatives of the victim's bank. They pretend to be calling for enhanced credit limits or some lucrative offers, and request the victims to confirm their details. Do not share your card details, email ID, or residence address. Cyber criminals can use these pieces of information to abuse your account.

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Account takeover

Usually, cyber criminals use stolen credit card details to cash it out as soon as possible. This is because these transactions can be detected and the card blocked immediately. As a result, cyber criminals are increasingly moving on to controlling a user's bank account remotely. This is called account takeover, which allows cyber criminals much more time to abuse the compromised account. They use stolen login and password details to access the account. Once they are in control, they can drain all the funds from the account.

Account takeover is difficult to detect as cyber criminals use authentic user details to log in to the account. Therefore, it is important to use strong passwords that are difficult to crack. Avoid using the same username and passwords for different accounts. This is because if cyber criminals are able to crack a username-password combination, they can access all your other accounts. It is also important to change your passwords often.

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Be vigilant for a safe digital experience

Digital payments make it convenient to pay or transfer funds from any device or location. A little vigilance can help protect your money from fraud and make the digital experience safer.

The article has been written by Neetu Katyal, Content and Marketing Consultant

She can be reached on LinkedIn.

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