The strongest shield against cyber fraud lies in daily awareness

As UPI and digital payments grow, criminals use psychological tricks and AI deepfakes to target users. Collective vigilance and cyber hygiene are your best defence

Over the past decade, the way we transact has changed dramatically: Cash is being replaced by digital wallets, the Unified Payments Interface (UPI) and mobile banking apps. This digital wave has carried millions into the formal financial system but there is a flip side. The technologies that empower are also being exploited by criminals — cyber fraud has become one of the fastest-growing threats to the financial system. The weakest link is often not the system but the person using it. Criminals have turned digital platforms into hunting grounds. Their methods are not just technological but psychological: They exploit trust, fear and greed. Some of the most common forms of fraud include:

 

• Phishing: Fraudulent emails, SMS or WhatsApp messages that impersonate banks or government agencies, tricking people into sharing passwords, PINs, or OTPsOTP- and UPI-based scams: Victims are told their account will be blocked, or promised cashbacks and rewards. In panic or excitement, they share OTPs or approve UPI requests
• Fake apps and cloned websites: Fraudsters create convincing duplicates of banking or payment apps, harvesting sensitive information once installed
• Digital arrest: Criminals pose as police or government officials, threatening victims with arrest for alleged illegal activities unless they transfer money.
• AI-driven frauds: Cybercriminals are using artificial intelligence to create highly realistic fake videos, voices, or messages – or deep-fakes. These can impersonate company executives, family members, or officials to convince victims to transfer money or share sensitive information.

 

Among the most vulnerable are senior citizens, first-time smartphone users and people in rural and semi-urban areas who are just starting their digital journeys. Unfortunately, these are the very groups that digital inclusion aims to empower. If fraudsters succeed, trust in digital systems gets eroded, and people may retreat from the very platforms designed to benefit them. 

One growing menace is the use of so-called mule accounts. Here, individuals are deceived or sometimes enticed into allowing their bank account to be used for transferring stolen or illegal money. What many do not realise is that becoming a mule is a crime. Even if the person was unaware, the law holds account holders responsible for permitting illegal transactions in their account. 

Just like oral hygiene, cyber hygiene must become a daily habit. It is not enough to rely only on banks, companies, or the government. Each of us must play our part. Cyber awareness must become an intrinsic part of our everyday life and the community. Schools and colleges can include digital safety in their curriculum. Housing societies and resident welfare associations can hold awareness sessions. Community gatherings, festivals and local meetings can include small reminders about cyber safety. And families must discuss digital risks openly, just as they discuss physical safety. 

To ensure preparedness against cyber frauds, banks are investing in security technologies to protect their systems and sensitive information. Then you have public awareness campaigns like ‘RBI Kehta Hai!’ Dedicated helplines and grievance redressal mechanisms are in place to provide immediate assistance to fraud victims. But even as banks fortify their systems, the first and most effective line of defence is you — the customer. An alert and informed user is the greatest deterrent to cyber fraud. When awareness spreads, fraudsters lose their advantage. Collective vigilance is as important as individual caution. 

The digital world is here to stay, and so are cybercriminals. However, we have the tools to protect ourselves. Awareness, vigilance and community education are the strongest defences. Cybersecurity is not a one-time activity. It must become a way of life in our homes, our schools, our workplaces, and our communities. AI and deep-fake scams are the latest challenges but they are not invincible. By questioning every suspicious message, resisting fear or temptation, and by making cyber awareness a daily habit, we can protect our hard-earned money. Stay alert. Stay informed. Stay safe. In the digital era, awareness is your strongest shield.

The writer is executive director, Bank of Baroda