Cyber Fraud & Bank Statements: What You Need to Know

Sharing your bank statement for loans, KYC or income checks is common today. Lenders use your statement to confirm who you are and check if you qualify for a loan. It is generally safe as long as you share it with a verified and regulated institution. But rising cyber fraud makes safety a real concern. The risk comes only when documents go to unverified or suspicious platforms.

Read on to understand how bank statement fraud happens, what red flags to look out for and the simple steps you can follow to keep your financial details protected.

How Cyber Fraud Can Happen from Shared Bank Statements?

Cyber fraud is not always about someone hacking your account. Sometimes, even basic details from your bank statement can be misused if they land with the wrong person. Here is how it can happen.

• Phishing attempts: Scammers may use your details to send fake emails or messages that look real and try to trick you into sharing an OTP.
• Identity misuse: Information like your name, address and masked account number can be used to pretend to be you and attempt unauthorised actions.
• Social engineering: Fraudsters may study your spending patterns and create convincing stories to get more details from you.
• Loan misuse: If shared with unverified apps, your documents can be used to apply for loans in your name.
• Fake customer service calls: Once they know your bank, scammers may call pretending to be support staff and ask for sensitive details like your PIN or OTP.

Red Flags: When Sharing Bank Statements Becomes Risky

Always keep an eye out for warning signs. If any of these appear, avoid sharing your documents.

• The company asks only for your account number and IFSC code without any formal process
• They pressure you to share documents over WhatsApp or personal email IDs
• Their website does not have HTTPS security
• They ask for your debit card PIN, CVV or OTP
• They are not listed on the Play Store or App Store with proper details
• Customer care numbers seem fake or unreachable

Checklist Before Sharing Your Bank Statement

Before you share your bank statement, do a quick safety check to make sure your details stay protected.

• Verify lender authenticity: Check if they are RBI registered, visit their official website and read customer reviews. Make sure they use secure systems like HTTPS and data encryption.
• Share details carefully: Never give your account number or IFSC to unknown apps. Share them only with regulated and verified lenders.
• Avoid informal channels: Do not send statements on WhatsApp or personal emails. Use only the lender’s official platform.
• Use secure PDFs: Share password-protected PDFs whenever possible for extra safety.
• Review your statement: Ensure it does not contain your debit card number, PIN or any sensitive card information.

What to Do if You Suspect Fraud?

If something feels suspicious or you think your document has reached the wrong hands, follow these steps immediately.

Step 1: If you shared the statement with a fake lender, stop further communication

Step 2: Inform your bank and request them to monitor your account for unusual activity

Step 3: Change your internet banking password and mobile banking PIN

Step 4: Enable SMS alerts if not already active

Step 5: Report the incident on the National Cyber Crime Portal

Step 6: Keep all messages, emails and screenshots for reference

Acting early prevents misuse.

Ask Questions and Go Through the FAQs on the Official Website of Instant Loan Apps 

Before sharing your banking details, make sure you understand how the lender keeps your information safe. Here’s what you can do:

• Clarify safety measures: Ask the lender how they protect your data, what systems they use and whether your information is encrypted.
• Check the FAQs: Read the FAQ section on the lender’s official website or app. Platforms like Fibe share answers to common concerns so you know how your data is handled.

While there isn’t a foolproof way of protecting yourself from cyber fraud and scams when submitting your banking details online, these points will help you lower the risk. Ultimately, it is in your hands to keep your banking data secure by making sure the lending institution is legit and has good reviews over the internet.  

Fibe is a leading lender with the best security measures, including the PCI-DSS app journey and ISO/IEC 27001 certification. You can get an Instant Personal Loan of up to ₹5 lakhs with a simple online application and adequate safety.  

Download our Personal Loan App or log in to our website and get started!  

FAQs on Submitting Bank Statements 

1. What happens if you submit fake bank statements? 

Submitting fake bank statements is illegal and can lead to serious consequences, which include fines and imprisonment. 

2. Does submitting my bank statement affect my credit score?

No, sharing your statement won’t have any impact your credit score. Your score changes only when you take or repay credit.

How can I verify if a loan provider is legitimate and trustworthy?

To verify a lender’s legitimacy, always visit their official website, check customer reviews and confirm that they are RBI governed. Avoid lenders that ask you to share documents over informal channels.

What are the red flags if a company asks for my bank statement and seems suspicious?

Red flags include asking for your statement on WhatsApp or not having a secure HTTPS website. Be careful if they request your PIN or OTP. Unclear customer care numbers or an unverified app listing are also big signs to stay away.