Trapped in a digital scam? 5 ways to protect yourself this festive season

As digital payment fraud increases, especially during the festive shopping season, Visa shares tips to help consumers stay safe during this high-risk period

Gujarat Police recently uncovered a large-scale cyber fraud operation, arresting 17 people, including four Taiwanese nationals, who were running a nationwide “digital arrest” scam. The gang tricked elderly citizens into believing they were under investigation for money laundering or drug smuggling. Posing as officials, they coerced victims into paying large sums to avoid fake criminal charges.

One of the key operatives, Saif Haider, allegedly facilitated access to victims' bank accounts by setting up technical devices that intercepted one-time passwords (OTPs). The police seized 761 SIM cards, 120 mobile phones, and 96 chequebooks from the scammers. Investigators believe the group defrauded over 1,000 people using these sophisticated methods.

 

"The victims were monitored through video calls and pressured to pay large sums, like the Rs 79.34 lakh extracted from one elderly victim over a fake Reserve Bank of India issue," said the police said in a statement.

Cyber fraud losses soar to Rs 177 crore

This Gujarat scam is just one instance of the rising tide of cybercrime in India. According to the Ministry of Finance, cyber fraud caused losses totalling Rs 177.05 crore in FY24, a sharp increase from Rs 69.68 crore the previous year. Minister of State for Finance Pankaj Chaudhary revealed these figures in a report presented to the Lok Sabha.

The surge in online fraud is partly driven by the rapid expansion of digital banking and UPI services. In Delhi alone, more than 25,000 complaints related to UPI fraud were filed by mid-2024. Additionally, 5,312 cases of internet banking fraud and 5,486 vishing complaints were logged on the National Cyber Crime Portal (NCRP).

How scammers operate: Tactics to watch out for

The rapid growth of digital payments has opened doors for scammers, who continue to evolve their methods. A common tactic, described by a Delhi Police officer, involves fraudsters contacting victims with fake UPI transaction images, pretending that they sent money by mistake. They then request the victim to scan a QR code to ‘return’ the money, which in reality siphons funds from the victim's account.

Net banking fraud is another major issue, with scammers sending emails that mimic legitimate financial organisations. "These emails often ask for personal details like usernames and passwords, and victims unknowingly hand over control of their bank accounts," the Delhi police explained.

Voice phishing (vishing) is also on the rise, with fraudsters targeting elderly individuals. Impersonating bank officials, they convince their targets to provide sensitive information. Once fraudsters gain access, they use rooted mobile phones to bypass security and steal money. In some cases, the scammers even claim that the victim’s account has been compromised, and offer help installing remote control software. Once installed, the fraudsters access the victim’s device, enabling them to steal private data and funds.

Visa’s tips for protection

As digital payment fraud increases, especially during the festive shopping season, Visa, a global payments technology company, has shared tips to help consumers stay safe during this high-risk period:

1. Call only authorised customer care services  

Always use official customer care numbers from your bank’s or payment provider’s verified communication channels. Act quickly to freeze accounts or block cards if any fraud occurs.

2. Report without delay  

Contact the National Cyber Crime Helpline (dial 1930) or report the incident via the National Cyber Crime Reporting Portal. Keeping a copy of the complaint is crucial for any future investigations.

3. Document every detail  

Don’t panic. Record all interactions and transactions once you suspect foul play. Keep screenshots, transaction IDs, and any communication that could be helpful when resolving the fraud.

4. Upgrade your security  

Protect yourself by updating passwords to stronger, unique combinations. Enable two-factor authentication, install anti-malware software, and use secure payment options such as tokenisation.

5. Advocate and educate  

Share your experience and knowledge about fraud prevention with friends, family, and on social media. This will raise awareness and help others avoid falling into the same traps.