Online fraud – Types of online scams and ways to prevent

Know the different types of online card fraud, and how you can prevent the misuse of your card.
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Online fraud – Types of online scams and ways to prevent
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3 mins
20-April-2023

Online fraud refers to fraudulent activities such as identity theft and financial fraud that are committed by using the internet.

What is online fraud in cyber security?

Online fraud in cyber security includes online scams, spam, identity theft, fraud buying products online from your account without your knowledge, identity spoofing, scam pop-up alerts, chain letter scams, etc.

Get coverage up to Rs. 2 lakh in case of a fraudulent transaction done using your lost credit/debit card with Wallet Care from Bajaj Finance Insurance Mall.

Types of online frauds

Given below are the different types of online fraud:

  • Assured approval for a credit card or loan: Email scams that tell you to pay a fee and that assures to give you a loan or credit card.

  • UPI fraud: The scammer sends money to the victim's account through a UPI app and contacts the victim requesting for a payback. If the victim repays through the UPI app, malware infects their device, giving the fraudster access to their full data, including bank and KYC details.

  • Employment opportunities: They promise to give you an employment offer letter if you agree to pay a certain fee.

  • Lottery scams: The email will say that you have won a lottery and you have to pay a processing fee.

  • Phishing: The meaning of phishing is to get access to your confidential details through email, SMS, or calls.

  • Email scams: You may receive emails, wherein you have been asked to click on links for an easy loan, vacation, or other benefits. These are spam emails and clicking on any such link can put your device’s security at risk.

  • Identity theft: In case of loss of identity cards, scammers can misuse your information for illegal activities.

  • Pan card fraud: Getting access to your PAN card number is easy and fraudsters can commit identity theft with these details. They can take loans, do unauthorised bookings, and other illegal activities with your personal details, resulting in PAN card fraud.

How does online fraud happen?

Given below are the ways in which online fraud may happen:

  • It is easy to get access to credit card details by hacking or online criminal organisations.
  • One who steals credit card details usually sells confidential information to third parties. This leads to the rapid spreading of information.
  • The law enforcement for cybercrimes is not very strict. There is not enough evidence for prosecuting cybercriminals. Cybercrimes usually involve several states and countries. Hence, jurisdictional issues can come into the picture. This delays the prosecution.

Protection against cyber crimes

You can safeguard yourself against cyber crimes by following a set of preventive measures:

  • Update your devices timely and ensure the installation of an antivirus program in your system.
  • Set strong passwords so that hackers cannot easily access your devices or accounts.
  • Look out for phishing scams. Do not click on any link received through email or text messages. This can be a trap and your confidential information can be at risk.
  • Secure your internet connection and be cautious of the information sent over it.
  • Protect all your personal information with strong passwords.
  • If shopping online, then make payments only on secure platforms. Scam websites can misuse your payment information.

To protect yourself from online fraud and scams get yourself protected with a card protection plan. Bajaj Finance offers Wallet Care plan for your safety. You can buy this plan and get financial security against card fraud. Also, avail benefits like credit and debit card blocking, PAN card replacement, and emergency travel assistance.

Frequently asked questions 

How do online frauds work?

Internet fraud is the practice of defrauding or exploiting victims by using online tools and services with internet access. Online fraud refers to a broad category of cybercrime that occurs online or via email, including crimes like identity theft, phishing, and other hacking attempts meant to defraud victims of their money.

How can I secure myself from online fraud?

You can follow a few simple steps to prevent yourself against online fraud:
1. Set strong passwords.
2. Keep devices and software up to date.
3. Do not click on links from any unknown source.
4. Do not share your PIN or payment card CVV with anyone.
5. Install antivirus in your devices.

What is a card protection plan?

A card protection plan serves as an insurance policy for credit, debit, cards, and membership cards in the event of card theft, loss, or fraud.

What are the common types of online fraud?

Given below are the common types of online fraud:
1. Phishing
2. Spyware
3. Internet banking fraud
4. Identity fraud

What is the CPP Wallet Care plan and how can it be helpful in case of credit card fraud?

The CPP Wallet Care plan covers online card fraud, phishing, tele-phishing, and PIN-based fraud. This is useful for credit card fraud protection as it offers a single-call card-blocking facility. It ensures that in case your payment cards fall into incorrect hands, then blocking the credit card becomes easy.

What is ATM Fraud?

ATM fraud involves the unauthorised use of a person's debit card or Personal Identification Number (PIN). It may also entail hacking into accounts to enable transactions without the owner's knowledge or approval.

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