Boost Your Knowledge: BFSI Scams Unveiled

BFSI scams are perhaps the most overlooked factor that causes serious economic damage to this sector every year. People all over the country report all kinds of fraud related to banking and other related sectors that put a strain on the country’s law enforcement and cause a chain of problems. To top it all, BFSI scams create a deep absence of trust in common people when it comes to investing as they fear similar financial losses. This directly brings losses to the sector, which poses an existential problem for the growth of this industry.   

It thus becomes extremely crucial to counter these problems by spreading public awareness of such scams so that they remain cautious while dealing with fraud. Here are some of the most common BFSI scams that everyone must be aware of.  

BFSI scams  

Phishing and ‘OTP’ scam  

A big percentage of BFSI scams belongs to phishing scams. People often receive fraudulent calls, messages, or emails wherein they lie about their identity and trick common people into giving their confidential personal information, such as bank passwords and the OTPs issued by banks for payments they make using your bank account details. The reason why phishing scams occur most commonly is that it is easier for scammers to gain access to your phone number and reach out to you via calls or text messages. Often, these scams are hidden in suspicious links which ask you to fill in your private details, which can be blatantly misused. Hence, it is crucial for everyone to remain careful of mysterious calls or text messages and never engage with them without confirming their source.  

Check-cashing scam  

Check-cashing scam is among the lesser-known BFSI scams. In this case, an individual may approach you outside of the bank and offer you their checks and ask you to cash into your account, claiming that they do not have a bank account of their own. They may even ask you to give them cash of your own and keep the check to yourself. However, the check carried by them are forged and fraudulent in nature and must never be accepted in the first place. Even if you do not pay them your own cash in advance, the fake check can still be held against you and your account and can get you in trouble. Hence, you must beware of such scammers and not get into such circumstances, even as an act of help.   

Employment BFSI Scams  

As the name suggests, a person or a company may approach you for a job. During or before the interview, they will ask for your personal details, which are essentially required during the recruitment process. However, some may even ask you to share confidential account details like your bank passwords. You must make sure not to pass on such sensitive information to anyone, even your own employer. While basic details like bank account numbers and other identification documents may be required, no details that can give anyone access to your account must be shared with anyone. As an additional safety measure, one must take care to cross-check the authenticity of the organisation that approaches you for work. You may find it tricky to identify an employment scam, but doing your homework will always shield you from such situations.   

Government Imposter BFSI Scams  

As the name suggests, a fraud may approach you, posing as a government official, and ask you to divulge key information about your bank account and other verification details that can give them access to your account. They usually use the tactics of intimidating their victims by calling them and narrating false charges about them and hence getting their bank account details by instilling fear. In other cases, they tell people they have won prizes and get them to divulge their personal information to scam them. To avoid such a scam, you should always verify their information and try to confirm their identity before sharing any details. You can ask the person claiming themself to be a government official to show their ID card, and they are legally obligated to confirm the agency they work for.  

Automatic Withdrawal BFSI Scams  

Most people use automatic withdrawals these days as it ensures smooth payment of bills on a monthly basis. It becomes difficult to keep track of every pending bill, and since failing to pay basic but important bills like electricity, water, wifi, gas, insurance, and so on will create unnecessary hassle, most people tend to have automatic payment systems. However, scammers have found a way to use your basic account details to automatically withdraw money from your account. They may call you up, saying that you have won or qualified for a prize, and they need the numbers at the bottom of your check to verify your account details. Once they have that information, they prepare a Demand Draft using that information. Since a Demand Draft does not require your signature, they use it to draw money from your account.   

Charity scam