Unveiling Top Financial Scams in India 2024

  • Updated on: 22 Feb 2024
  • Published on: 22 Aug 2023
Unveiling Top Financial Scams in India 2024

In the increasingly interconnected digital landscape, online scams have become an unfortunate reality, preying on unsuspecting individuals and organisations. From phishing emails to fake investment schemes, the realm of financial fraud is vast and ever-evolving. 

One way to protect yourself from these is to be aware of the tactics that scammers use and the tips you can use. So, read on to know more.

Types of Scams

Here is a list of some common scams in India that you should know to keep yourself and your finances protected.

Part-time Job Scam

The rise of part-time job scams targeting the youth involves tasks like data entry and content writing. Here, scammers try to lure victims by providing small commissions and eventually persuading them to invest to earn big returns. Once a victim makes a substantial investment, these scammers disappear, leaving the victim with significant financial loss. 

UPI Scam

In the UPI scam, scammers mainly target shop owners and businessmen. They send a large sum through UPI and then pose as someone who made a mistake, requesting the recipient to return the money through a provided link. Falling for this, victims unknowingly download malware, allowing scammers to hack their phones, access personal data, including bank details and commit theft. 

In some cases, they provide forged screenshots of the money sent without actually making the payment and then request the merchant/receiver to repay the excess amount. Since the money was never transferred, doing so leads to significant financial loss.

QR Code Scam

The QR code scam tricks individuals into believing they’ll receive money, but instead, funds are deducted. This often happens when scammers present QR codes as offering vouchers or discounts, leading to debit rather than credit upon scanning. 

Loan Scam

The loan scam involves fraudsters using names resembling legitimate bank companies to create a false sense of urgency, pressuring victims about heavy penalties for missing loan repayment deadlines. This tactic aims to confuse and provoke quick action, especially in the context of personal loans. If you fall for it, you will be transferring money to fake links and the actual bank’s terms will remain unchanged. 

Lottery Scam

The lottery scam is familiar to most, involving SMS or email claiming a cash prize. These scams manipulate trust, making victims believe they’re chosen for a special prize. Sharing personal details supposedly for receiving the prize leads to theft from the victim’s account instead. It’s crucial to never share OTPs and stay informed to avoid such scams.

Tips to Avoid Being Scammed

Amid the rise in digital transactions, remote work and delivery apps in Digital India, the threat of cyber scams is also increasing. To protect against these, here are some helpful tips for you:

  • Safeguard personal information and never share PINs
  • Be cautious of too-good-to-be-true offers
  • Recognise urgency tactics and verify payment recipient
  • Avoid attending calls/messages from unknown and unverified sources
  • Regularly update your passwords
  • Monitor your bank account statements for unusual activity.

These precautions aim to promote awareness and ensure Freedom from Fraud. In continuation of the Freedom from Fraud initiative, Fibe launches our Cyber Insurance product to give you an added layer of security from digital threats. 

Remember to click on the checkbox to avail of this product while availing of an Instant Personal Loan. Download the Fibe Personal Loan App to get quick funding of up to ₹5 lakhs and get more information on how to avoid falling into the trap of financial scammers.

FAQs on Biggest Financial Scams in India 2023

What to do if I have fallen prey to a financial scam?

Follow these steps if you fall into a financial fraud:

  • In case of a UPI scam, complain with your UPI service provider and file a complaint with NPCI or your bank if the UPI service provider is unresponsive 
  • Report immediately to your bank if it is a banking fraud
  • You can report the fraud at the local police station
  • Report it on the National Cyber Crime Reporting Portal through their website or helpline number, 1930

What are some of the most effective strategies to avoid online financial scams?

Here are some suggestions to prevent an online fraud:

  • Use malware protection
  • Enable 2-Factor Authentication (2FA)
  • Be vigilant with emails
  • Don’t open unauthorised, unknown, or suspicious links

How to report financial fraud on the National Cyber Crime Reporting Portal? 

Follow these steps to file a complaint on the NCCR portal:

  • Visit the National Cyber Crime Reporting Portal at https://www.cybercrime.gov.in/ 
  • Register on the portal if you don’t have an account
  • File a complaint providing details, including the nature of the fraud and financial losses

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