Remember the days of fumbling for cash and credit cards? Now, we tap our phones, and our purchases are complete. It’s convenient, it’s fast, but it also comes with a risk. Cybercriminals are lurking, ready to steal your identity and empty your bank account.
It’s not just baby boomers and your aged parents who are victims of cyber financial frauds; some of the most tech-savvy people can also fall prey to these attacks. Cybercriminals are always refining their techniques and using sophisticated measures to dupe unsuspecting individuals.
For instance, payday loans have become very popular in the UK and many online providers offer these easy loans. However, not every website is legitimate. Many almost-genuine fraudulent websites are waiting for people in distress to visit their pages so they can easily con you for your identity and bank information once they get those details. This is why it’s essential to do your research and learn more about payday loans providers. Check whether they are authorised and regulated by the FCA and read through the terms and conditions before taking out the loan.
Let’s explore some common telltale signs of online financial fraud and how best to avoid them.
Online Financial Fraud is On The Rise
A recent survey has shown that over 20% of UK adults have been victims of financial fraud between 2021 and 2023, resulting in over £1 billion in total losses. The most common type of financial fraud is Authorised Push Payment (APP), which cost the public nearly half a billion pounds last year.
In this type of scam, the threat actors will trick victims into sending money to them via social engineering. These scammers are very creative with their methods, making it important for you to remain on guard and double-check every detail before making an online payment. In an effort to better inform customers about online scams, the government and banking partners have launched a nationwide campaign known as Take Five.
Take Five Campaign
This national awareness campaign was launched by UK Finance and the Government and is delivered through multiple partners. This campaign asks that you give yourself five minutes to decide whether the request for personal or financial information is sincere and whether or not the person seems to be telling the truth.
Here are a few things you must keep in mind:
- Never will a bank or law enforcement agency ask you for your PIN, banking password, or even to enter the information while they are on the phone.
- Authorities will never ask you to withdraw money and hand it over to them for safety.
- They will not visit your house in order to collect money, cheques, credit cards, or PINs.
- No genuine authority will coerce you to buy any product.
Steps to Detect and Avoid Online Financial Fraud
Notice Phishing Scams
Did you notice an email that is too good to be true? Does the sender look almost vaguely familiar? Phishing scams are becoming increasingly common, almost convincing you to share your personal information. Do not click on any links, images, or QR codes unless you absolutely trust the sender.
Update Your Security Details
Ensure you are regularly updating your malware and cybersecurity details. You can also use a VPN to protect your IP address. Another important factor to consider is using a strong password. It shouldn’t be anything that is easily recognisable or related to directly you or your loved one, like your spouse’s name or your anniversary or birth date.
You must change your password every few months and also use multi-factor authentication so that you can double-protect your data and account. Additionally, never share your personal information or passwords with anyone.
Avoid Public Networks
Never access your bank account or conduct any transactions over public wi-fi and networks. It might be tempting to finish paying your bills while you wait for your train or the tube. But these open networks are the biggest trap for scammers.
Scammers can access your personal information over these public networks making you susceptible to data loss.
Purchasing from Fraudulent Websites
Did you come across a website on your social media feed? Do the products look enticing, and are the prices too good to be true? It is important to verify the website before sharing your information or card details on these sites. You may also end up paying for the products and yet never receiving them.
The best way to check the authenticity of a website is to check their contact details and address. You can also look for the padlock symbol on the address bar and only trust websites that begin with “https://” instead of “http://”.
Additionally, you can also check if the company is registered by checking on the GOV.UK website.
Wrapping Up
It is always important to be cautious whenever you are making an online purchase or transaction. Double-check the information before hitting the send button. It is best to avoid taking any action if you are unsure. If you have noticed any unauthorised transactions on your account, immediately contact your bank and notify them. You must also immediately notify the police, as this might help you retrieve your money. Remember, it is better to be cautious than losing your money to fraudsters.
