Save Yourself From Serving As A Bait For Another Transaction Fraud

Save Yourself From Serving As A Bait For Another Transaction Fraud

Although e-banking provides customers with a satisfactory and efficient experience, is it a reliable medium to transfer money? If it’s that secure and safe, why is there a rise in transaction fraud cases these days?

With the advancement in technology, scam routes have multiplied for fraudsters. It is alarming for banks as they are the ones answerable to the customers.

Therefore, with the increase in digital transaction scams, it is time that banks adopt effective fraud management platforms to analyze the individual customer’s behavior and the context of every transaction as a security measure against scams and fraud. These tools come in handy as they study existing behavioral patterns and detect anomalies in a matter of seconds.

In addition to this, awareness plays a huge role in scam prevention. As discussed at financial summits in 2022, bank account holders and those who have embraced cashless transactions as a part of everyday life must be aware of the many ways through which scammers try to siphon off money from their bank accounts. In this blog, we will quickly walk you through their tactics and some of the most common scams:

Phishing Scams

Phishing scams are extremely popular because of the easy accessibility to reach a mass audience through mere emails or text messages. Scammers make their messages look professional enough to gain customers’ personal information. If the customers click on the shared links and respond to their requests, their sensitive data might be compromised.

It’s always advisable for people to think twice before giving away personal/money information, account details, and credit card numbers or passwords — unless they are sure about the request’s source.

Automatic Withdrawal Scams

Here, the scammer attracts individuals by assigning them an offer or prize. They do it to gain the numbers written at the bottom of the check. The scammers put those numbers on a demand draft, which is processed like a check without a signature. Upon receiving the draft, the bank transfers the amount to the scammer’s account.

It’s wise to avoid offers, prizes, or job openings from unknown sources that ask for fees or bank account information in advance.

Employment Scams

The scammers will mail, text, or call to offer an employment opportunity in return for a minimal upfront fee. Once they receive the payments, they disappear!

Employment scams also come in another form — what if they misuse your personal information? Yes, that’s possible. To avoid being taken advantage of, share your details only with verified agencies and trustworthy businesses while looking for a job.

If you feel you have been scammed, don’t hesitate to file a case or report it to the concerned authorities.

Unbidden Check Fraud

Have you ever received an unexpected return or check-in your mail? Don’t fall for it, as it’s a deceptive tactic used by scammers to authorize memberships, loans, and other longer-term commitments under your name. In such cases, scammers hope that you will accept the check and get trapped blindly.

Be aware of what you accept and sign; don’t agree to things that lure you from a distance. If it looks unrealistic, maybe it is.

Refund Scams

As highlighted at the academic finance conferences of 2022, owners of small businesses, as well as service providers, are extremely prone to refund scams. In this scenario, the scammer usually sends a check with more than the amount owed and asks the victim to deposit the wired money into their account. After a few days, the bank will ask you to make the bounced check payments while the wired amount is pocketed by the fraudster.

As a businessman, it’s better to be cautious while using checks as a mode of payment. Don’t go for it unless you know how they work!

Government Imposter Scams

Some scanners pretend to be government officials and trick you into believing that you have unpaid taxes or fines. They may even threaten the person by sending them to jail in case of non-payment. The reality is that government officials will never call to ask for money in such a manner.


Digital banking is easing our everyday problems, but in the end, there are two sides to every coin. As technology can be used for both good and bad deeds, so to experience the good side of technology demands you to be cautious. The next time you exchange your personal information, bank details, and account numbers, make sure you share them with a trustworthy person. It would be good to listen to your gut when it comes to confusion.

As recommended by experts at major insure tech conferences of 2022, such as the Money 2.0 Conference (Money2Conf), practice cyber hygiene while conducting transactions on the world wide web and change your banking passwords every six months! Your money is your responsibility, and with the right amount of judgment, you can protect yourself and your financial assets.

Leave a Reply