The strongest shield against cyber fraud

Over the past decade, the way we transact has changed dramatically: Cash is being replaced by digital wallets, the Unified Payments Interface (UPI) and mobile banking apps.

- BEENA VAHEED

This digital wave has carried millions into the formal financial system but there is a flip side. The technologies that empower are also being exploited by criminals — cyber fraud has become one of the fastest-growing threats to the financial system.

The weakest link is often not the system but the person using it. Criminals have turned digital platforms into hunting grounds. Their methods are not just technological but psychological: ‘They exploit trust, fear and greed. Some of the most common forms of fraud include:

■ Phishing: Fraudulent emails, SMS or WhatsApp messages that impersonate banks or government agencies, tricking people into sharing passwords, PINs, or OTPs

■ OTP-and UPI-based scams: Victims are told their account will be blocked, or promised cashbacks and rewards. In panic or excitement, they share OTPs or approve UPI requests

■ Fake apps and cloned websites: Fraudsters create convincing duplicates of banking or payment apps, harvesting sensitive information once installed

■ Digital arrest: Criminals pose as police or government officials, threatening victims with arrest for alleged illegal activities unless they transfer money.