Increasing online Frauds

Recent developments in the technology landscape, including the acceleration of automation, artificial intelligence, and the digitization of industries, are transforming the nature of work. These challenges have immediate and far-reaching implications for India's economy, society, and future prospects.

The Tech Tsunami, characterized by rapid technological advancements, has the potential to drive unprecedented growth and innovation. However, if not harnessed effectively, it could lead to job shrinkage, job displacement and job reduction further leading to increased economic inequality.

Cybercriminals are constantly devising new ways to exploit vulnerabilities and deceive unsuspecting individuals into revealing sensitive information or transferring money. Phone scams, in particular, have become a prevalent form of online fraud, with criminals using various tactics to trick victims into parting with their hard-earned money.

The digital age has made financial transactions convenient but has also led to a significant increase in cyber fraud, with domestic payments fraud in India rising from ₹542.7 crore in FY 2021 to about ₹2537.35 crore in FY 2023.

The widespread adoption of digital payment methods, such as mobile wallets, UPI, and online banking, has created a larger pool of potential targets for cybercriminals, with various tools including phishing emails, fake websites, social engineering, and malware attacks. The Large-scale data breaches expose sensitive financial information, providing cybercriminals with the means to carry out targeted attacks and identity theft.

There is growing ATM fraud where fraudsters are constantly devising new and sophisticated techniques to deceive individuals and steal their financial information. Some common ATM fraud tactics include skimming, card trapping, and phishing. When there is fraud in the ATM, generally banks face the loss.

In cases of cybercrime over the phone, criminals may trick customers into revealing their personal information or making payments without their consent. The fact is banks have less control over the security of phone calls and other communication channels used by criminals to commit cybercrime. It becomes ardent necessary for the banks to undertake, proper security measures against this type of frauds. A report says, no financial frauds have been reported on the loan accounts in the bank.

Despite these challenges, banks are increasingly taking steps to help customers who have been victims of cybercrime. For example, many banks now offer fraud protection services that can help customers detect and recover from fraudulent transactions. Additionally, some banks are offering reimbursement programs for customers who have lost money to cybercrime.