With cutting-edge artificial intelligence (AI) technologies on the rise, digital payment fraud has morphed into a sinister dance of “quishing”, “swishing”, and even digital arrests. Gone are the days of simple scams; fraudsters now wield technology like a weapon, devising ever more cunning ways to dupe unsuspecting consumers.
This alarming trend is underscored by government data; since the National Cyber Crime Reporting portal launched in August 2019, over 1.3 million complaints have been filed until November 15, 2023. Surprisingly, the most vulnerable victims are often the most digitally adept — our tech-savvy youth.
Visa’s global study titled "The Language of Fraud” reveals that the demographic most susceptible to digital payment scams is surprisingly the young population, aged 21 to 29. This group also constitutes a significant portion of first-time digital payment users. They are the primary spenders on categories like food and travel, while also managing crucial expenses such as rent and utility bills. In the digital world, where transactions occur with a few clicks, ensuring safety in these areas becomes a challenge, particularly if there’s a knowledge gap.
First-time digital payment users often navigate the digital payment landscape without adequate knowledge of the security threats. This lack of understanding about emerging technologies is misused by fraudsters and often the main reason young people, even digital natives, fall prey to scams.
Phishing and Digital Arrest
Phishing, a method tricking people into revealing sensitive information, has evolved into multiple hostile techniques such as quishing, vishing, and smishing, on different communication modes, leveraging malicious URLs, QR codes, phone calls, and messages as gateways to fraud.
Recent cases of digital arrest, where imposters posing as law enforcement officers exploit consumers with false accusations of criminal activities, have also raised concerns about security in digital payments. As advancements in AI and other social engineering technologies continue, deep fakes and malicious content pose a serious threat to uninformed consumers.
Learning to smell a scam is essential and this is where awareness is essential to shield yourself from digital payment fraud. Scammers love playing mind games, often using ruses of urgency, sugar-coated good news or fear-mongering to trap unsuspecting cardholders. Be wary of any message or phone call demanding immediate urgent action, especially if it involves sharing sensitive information like passwords or OTPs. These are few of the red flags you must not fall for.
If you receive suspicious URLs, it’s a smart move to check their legitimacy using a different way of reaching out, not the same one the request came from. Legitimacy of government and official portals can easily be verified by doing a quick internet search. Apart from education, keeping your guard up is key to steer clear of digital payment frauds. Make it a habit to regularly track the transaction and purchase alerts your bank sends to stay safe from digital payment frauds.
Safe Digital Transactions
Ensuring safer digital transactions is paramount in today's technologically driven world. While there are various methods of making digital payments, credit cards stand out as a more secure instrument, offering layers of protection that sets them apart. In the event of a digital payment fraud, credit card users can turn to their respective issuer banks to block the cards and/or raise a chargeback on the transaction/s.
However, even with all necessary precautions, scams can occur. For immediate help, dial the National Cyber Crime Helpline at 1930 and to file a complaint, head to the website of the National Cyber Crime Reporting Portal (NCRP). Launched by the Indian government in 2019, NCRP aims to expedite the complaint process for cybercrimes, especially for women and children. You can also file a complaint with your nearest police station if you’re a victim. Remember, reporting a cybercrime is a crucial step to securing the digital payments landscape for all.
Accelerated technological adoption and innovation is the inevitable reality of our world. But this should not be at the cost of individual security. On this ‘Safer Internet Day’, it’s critical to focus attention on safeguarding digital transactions, as we come together to build a safe and secure digital world. As important stakeholders in the digital ecosystem, we must work together to ensure we stay informed and vigilant when making digital payments.
—The author, Vipin Surelia, is Vice President and Head - Risk Services, at Visa India and South Asia, the multinational payment card services corporation. The views expressed are personal.
.
(Edited by : C H Unnikrishnan)
First Published: Feb 6, 2024 1:43 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Election: Re-elections at a Ajmer booth after presiding officer misplaces register of voters
May 2, 2024 4:54 PM
Rahul will be forced to take out 'Congress Dhoondho Yatra' after June 4: Amit Shah in Bareilly
May 2, 2024 4:36 PM