Are Digital Pickpockets Targeting Your Finances? Discover 7 Types of Financial Fraud and How to Stop Them

The internet world is bustling with crafty hackers lurking around, wanting to snatch your hard-earned money, and individuals and businesses are losing thousands and lakhs of rupees to online scams.
In 2023, the Indian cyberthreat landscape witnessed 400 million instances of malware across 8.5 million endpoints.
Surprising, right?
Do you know what’s more surprising?
If you compare the above figure to Apple’s income in 2021, it’s still over 400% more! That’s how serious financial frauds are and will likely be.
Are you looking for a way out?
Let’s discover the types of financial fraud and how to spot and stop them.

Types of Financial Frauds: Know Your Enemy!

Financial fraud is simply a crime or an act of deceit where the perpetrator attacks an individual or a company to disrupt their financial health. The perpetrator can be an individual or an organization. Some types of financial fraud include:

Identity Theft

It happens when the fraudster illegally or unethically acquires your personal and financial data through a phishing attack, malware, or viruses. They steal data like names, phone numbers, bank details, credit/debit card details, etc. to commit crimes.
Example: Someone in your name applies for a new bank account or credit card.

Mortgage/Lending Fraud

A fraudster may use your personal and financial data to apply for a loan or mortgage or sell you one. Thus, a loan hovers over your head even though you have no idea about it.
Example: Loan modification fraud, broker-facilitated mortgage fraud, etc.

Investment Frauds

In investment fraud, the criminal tricks you into investing in a scheme promising large gains with little investment and risks, but runs away with your money. This could sound like the best opportunity of your lifetime, but it’s not.
Examples: Ponzi schemes, advanced fee scams, high yield frauds, pyramid schemes, pump and dumps, etc.

Insurance Scams

To execute an insurance scam, someone will claim a small amount of money from an insurance provider for an unreal loss. The claim being smaller, the insurer may not conduct a thorough review and approve the claim. So, the insurer has paid for a loss that doesn’t really exist.

Mass Marketing Scams

Mass marketing scams spread through spam emails, bulk emails, phone calls, WhatsApp messages, etc. It includes click-bait messages, fake lotteries, charities, exclusive memberships, etc.
Examples: “Congratulations! You have won an iPhone 15”.

Romance Scams

You may receive calls or messages from an unknown person asking to be your friend or romantic partner. They lure individuals and trick them into revealing confidential information to steal their assets.

Tax Refund Frauds

A cybercriminal may file tax returns in your name without permission, reporting false income and maximizing refunds.

How to Recognize and Avoid Online Financial Fraud

If you spot the following issues, you may be at risk:

• Repeated bounced cheques
• Abnormal errors in tax returns
• Failed login attempts
• Dropped credit scores
• Hard-to-believe rewards
• Unable to access bank accounts
• Someone pressurizing for donations
• Unfamiliar purchases via online banking
• Fraud alerts and messages via email or text
• IRS reporting multiple tax returns under your name
• Officials calling you about a new loan you haven’t taken
• Changed phone number in your account without permission
• Someone asking you to make an advanced payment to secure a new loan

If you encounter any of the above-mentioned issues, report them immediately to the authorities for swift action. But there’s a way to avoid them if you follow the below tips:

• Use stronger passwords: Avoid generic, too-easy-to-guess passwords like 12345, your name, DOB, etc. Instead, use stronger, unique passwords using a combination of upper and lower case letters, numbers, and symbols that no one can guess.
• Use secure technologies: Employ cybersecurity in your financial accounts, such as 2-factor authentication, SSOs, identity and access management (IAM), VPNs, etc.
• Review account statements: Review your statements periodically to spot suspicious, unfamiliar transactions.
• Browsing safely: Avoid visiting unsecured websites and applications or clicking on unknown emails with attachments.
• Avoid public Wi-Fi: Never use public Wi-Fi or charging points that can automatically download malware on your device, making it vulnerable to attacks.
• Use a reliable antivirus: Use antivirus like Quick Heal Total Security to spot and stop vulnerabilities and risks in real-time.

How Quick Heal Antivirus Prevents Financial Frauds?

Quick Heal Total Security leverages advanced technologies and responds proactively to financial fraud and vulnerabilities.

• AI-powered antivirus: This cloud-based antivirus utilizes a robust, malware-hunting, self-aware technology — GoDeep.AI — along with Deep Learning, behavior detection, DNA scans, seed analysis, and multi-layered defense mechanisms to protect users.
• Bot removal: It has collaborated with the Government of India on the Cyber Swachhta Kendra (CSK) initiative to create a bot removal solution for your digital safety.
• SafePe: SafePe secures financial transactions via eWallet, e-commerce, banking, and financial applications. It scans a device’s environment, root access, network, and file system for malware and vulnerabilities.
• metaProtect: Quick Heal’s metaProtect portal lets you remotely monitor and manage device security and privacy, license subscriptions, and anti-theft solutions.
• Simplified UI: Quick Heal antivirus has a simple interface offering a seamless, synchronized, and smooth user experience, accessible anytime, anywhere.
  Security and Privacy Score: Get personalized device assessments and actionable recommendations to improve privacy and security scores.
• Patented technologies: Quick Heal has several international patents showcasing the company’s dedication to innovation.
• Anti-Ransomware Patent: India Application No: 2461/MUM/2015; NT Ref: QHL-302-INQHL-302-IN
  Malware Detection in Data Streams Patent: Patent No. US20210089654, Grant No. US11216558
  Anti Ransomware Technology US Patent: Patent No. US20160378988A1, Grant No. US10311234
  This is not it! AV Lab, Poland has certified Quick Heal Technologies in 2023 for safe banking and internet browsing.

To Sum Up

Financial frauds are rising but can’t stop you from going digital. The best way? Use Quick Heal Total Security antivirus to stay secure and protect your data from fraudsters. Download Quick Heal Total Security now!
Want to check your safety score? Take the Risk-o-meter test.