How does OTP fraud work? 

1. Fraudsters obtain personal information like banking details or mobile numbers.
2. They impersonate legitimate entities like banks, e-commerce platforms, or service providers.
3. They trick people into sharing their OTPs.
4. Once they have the OTP, they make unauthorized transactions like withdrawing money from bank accounts.

How to protect yourself from OTP fraud? 

• Don't share details by filling out forms.
• Don't download third-party apps.
• Avoid clicking on links from unknown sources.
• Use the contact details provided on official websites.
• If you have an issue, immediately inform your service provider and block your card.

Other OTP fraud tactics: SIM swapping, Phishing emails, Fake tech support calls, Social engineering, and Malware-infested links. 

How to identify fake loan apps

• Unrealistic offers: Be wary of offers that seem too good to be true. 
• High fees: Legitimate lenders deduct processing fees from the loan amount, not upfront. 
• No physical address: The app may not have a physical address or contact information. 
• Unsecured website: The app's website may be unsecured. 
• Pressure tactics: The app may use pressure tactics to get you to apply.
• No credit check: The app may not check your credit. 
• Fake reviews: The app may have fake reviews. 
• Unclear terms: The app's loan terms may be unclear. 

Type of Collection Payment Frauds:

• Forged or Stolen Payment Information:
  Fraudsters may use stolen credit card details or forged checks to make unauthorized payments.
• False Claims for Refunds or Chargebacks:
  Customers may falsely claim they never received a product or service to obtain a refund or initiate a chargeback.
• Phishing Scams:
  Criminals use deceptive emails or messages to trick individuals or businesses into providing sensitive financial information.
• Identity Theft:
  Fraudsters may use stolen personal information to create fake identities and make fraudulent payments.
• Skimming:
  Devices are used to secretly copy payment card information at point-of-sale terminals.
• Account Takeover:
  Fraudsters gain unauthorized access to customer accounts and change payment details.
• Friendly Fraud:
  A customer intentionally makes a false claim against a payment to receive a refund or other benefits, even though they received the goods or services.
• Double Dipping:
  A customer makes a purchase and then makes a false claim to get a refund or replacement while keeping the original item.

Key points about voice call fraud:

• Deceptive tactics:
  Scammers may use a variety of tactics including creating a sense of urgency, threats, or false promises to manipulate the victim into providing information. 
• Caller ID spoofing:
   They often manipulate the caller ID to make it appear as if the call is coming from a trusted source like a bank or credit card company. 
• Voice cloning technology:
  Advanced scams may utilize AI technology to clone voices, making the caller sound even more convincing. 
• Common targets:
  Sensitive information like bank account numbers, credit card details, login credentials, and one-time passwords (OTPs) are often the target.  . 

How to protect yourself from voice call fraud:

• Be cautious with unknown numbers:
  Do not answer calls from unknown numbers, and if you do answer, be wary of high-pressure tactics. 
• Verify the caller:
   Always independently verify the identity of the caller before providing any personal information, especially if they are asking for sensitive details. 
• Never give out sensitive information over the phone:
  Do not share your bank details, passwords, or other personal information over the phone unless you initiated the contact and are certain of the legitimacy of the caller. 
• Report suspicious calls:
  If you suspect a scam call, report it to your phone provider and relevant authorities.  

How to spot email fraud 

• Check for authentication: The message may not pass email authentication checks.
• Look for urgent language: The message may use urgent or threatening language.
• Check for errors: The message may contain errors like poor grammar, spelling mistakes, or incorrect sentence structure.

How to prevent email fraud 

• Don't open emails from unknown senders or spam
• Be careful about links in unsolicited emails
• Use strong passwords and change them regularly
• Don't store your passwords on your device
• Don't share your password with anyone

Common loan extension scams

• Unsolicited messages: Receiving unsolicited messages about loans
• Too-good-to-be-true offers:  Offers that sound too good to be true 
• Advance fees: Requests for fees before processing a loan application 
• Fake websites:  Using fake websites to impersonate lenders 
• Phishing attacks:  Using phishing attacks to trick people into giving away personal information 

How to avoid loan extension scams 

• Verify the lender's credentials
• Use official channels to apply for loans
• Be wary of unsolicited messages
• Be wary of offers that sound too good to be true
• Don't pay advance fees to lenders
• Report suspicious activity to your bank and relevant authorities