How to Spot Fintech Fraud?

While scrolling through social media, a message pops up: "long-lost cousin." Hold on a second! This can be a fintech fraud with you. It is a growing thread of today's fintech fraud.

Now, what do you do to be safe in these situations? Here is the good news! You don't have to become a victim. Here's how to spot the most common fintech scams and protect your hard-earned cash:

Phishing Scams

Phishing scams are getting more complicated. Scammers send emails or texts of legitimate institutions like popular payment apps.

Follow the golden rule to remain safe: Real banks NEVER pressure you for immediate action through emails or texts.

How to Spot these Emails:

If you find an email with these or one of these things, you're on at risk:

• Misspelled words
• Odd grammar
• Generic greetings
• Suspicious links
• Vishing

"Do you know vishing?

When a fraudster calls, he posses himself as the representative from banks or government agencies. He further claims your account has been compromised or similar things."

How to Protect Your Account From Hacking?

If you assure that you have used these tactics, your account will be at a very low or no risk:

• Create strong passwords. The best way is to use alphabets, numbers, and special characters collectively.
• Impose two-factor authentication (2FA).
• Don't share personal information over the phone or online chat
• Keep in mind; if something feels phishy, it probably is. So be safe, and don't trust that call or email.
• Social engineering.

"Do you know about Social Engineering?

It involves manipulating you into revealing personal information or taking actions that benefit the fraudster. Scammers may pose as customer service representatives, friends in need, or even online romantic interests."

Real-World Examples of Fintech Frauds!

Common people are not the only targets of the fraudsters. Here are some of the most recent fintech frauds that showcase how vulnerable these scams can be:

1. Deepfake Fraud:

A finance worker of a MNC was tricked into authorizing a fraudulent money transfer (of approx. 25.6 million USD). How? With a deepfake call that was mimicking the voice of the company's CFO. This highlights how fraudsters can use social engineering tactics to scam even in a MNC.

"Do you know about a deepfake call?

It is a video or audio recording that looks real but it is not. Fraudsters manipulate and make it appear as if someone is saying or doing something they never did."

How to be safe?

When you receive a deepfake call that involves a huge amount of money transfer or personal information, double-check it before proceeding.

2. Fake Investment Apps:

This is another concern growing globally. When users deposit funds in it, they disappear or don't respond.

How to be safe?

Don't fall into their professional-looking interface and positive reviews.

3. Fake Social Media Giveaways:

Everyone likes giveaways and discounts but, be careful. Fraudsters are here too. A social media posts promoting "giveaways" from popular brands or financial institutions can also be vulnerable to you.

How to avoid this scam?

When you find any giveaway link, don't click randomly. If you have accidentally clicked, do not provide any personal information.

Practical Steps for More Security

Here are some actionable steps you can take to safeguard your financial well-being:

• Always download apps from official stores.
• Regularly monitor your account.
• Be wary of public Wi-Fi.

Follow reputable security blogs, consumer protection agencies, and your financial institution's social media channels for updates and security tips.

Key Takeaway: Share the Knowledge and Spread Awareness!

If you have gained information, now it's time to share it with others. Talking openly about these scams can help raise awareness. More importantly, it will also demotivate scammers.

Don't Forget!

If you suspect fraudulent activity, report it immediately to your financial institution and the appropriate authorities.