Think before you click to avoid financial scams

BY ADHIL SHETTY

The rise of digital payments has transformed the way we handle money. We get speed and convenience through UPI and credit cards. Yet, this ease comes with the ever-present threat of financial fraud. Scammers are adept at exploiting technical flaws but more importantly, they can also manipulate human psychology to deceive even cautious consumers. From creating false urgency to impersonating trusted figures, fraudsters prey on emotions and trust. Understanding their tactics is the first step to safeguarding your money. Let’s look at five common tricks scammers use and how you can outsmart them.

1. FALSE URGENCY

Scammers thrive on panic. They create scenarios where you feel compelled to act instantly, leaving no room for rational thought. Imagine receiving a text claiming your bank account will be frozen unless you verify your details immediately. In the heat of the moment, you might share sensitive information without thinking through the decision. Remember: banks rarely demand immediate action over calls or messages. If you’re pressured to act quickly, pause. Contact your bank directly using official channels like the helpline, email, or social media to confirm what the problem is. A moment’s delay could save you from a costly mistake.

2. IMPERSONATION & AUTHORITY

Fraudsters often pose as authority figures such as bank managers, government officials, and more commonly as police officials. They want to establish their authority quickly to gain your attention and trust. For instance, you might receive a call from someone claiming to be a customs officer, alleging that illegal items were found in a package under your name. They demand payment to clear your record or threaten legal action. But a legitimate authority won’t ask for money or sensitive details over the phone. If you encounter such a situation, disconnect the call and report it to the relevant authorities.

3. FAMILIAR FACES AND FAKE FRIENDS

Scammers often impersonate people you know or brands you trust to lower your guard. Imagine receiving a message from a friend’s hacked social media account, urgently asking for financial help. AI tools are also being used to mimic the cries of help of family members. The personal connection makes it harder to question the request. Before transferring money or sharing details, verify the situation offline. Call the person directly or speak to someone close to them. A genuine request will withstand scrutiny, while a scam will crumble under it. To beat AI-centred scams, families can develop a secret safe word or phrase to be used only in such situations. A scammer trying to impersonate a family member will not be able to answer the secret question.

4. FAKE REWARDS AND PRIZES

The promise of quick reward is an age-old scam. You might receive an email claiming you’ve won a lottery or get a text saying you’ve been selected for an easy job. But you need to pay a “processing fee” or share your bank details to claim the prize. Genuine rewards don’t require upfront payments or sensitive information. If an offer seems too good to be true, it probably is. Research the organisation behind the offer and ignore unsolicited messages promising windfalls.

5. EMOTIONAL MANIPULATION

Scammers often target your emotions to cloud your judgment. For example, you might receive a call claiming a family member is in trouble and needs money urgently. Alternatively, they might appeal to your compassion by asking for donations to a fake cause. In such moments, take a moment. Verify the story by contacting the person involved or consulting someone you trust. Emotional manipulation relies on haste. So slowing down can help you see through the deception.

In India, we have robust and secure technology as well as regulations that empower consumers. But the vulnerability often lies in the consumer’s mind. So take a moment to verify, question, and think critically. In the battle against financial fraud, caution is your strongest ally. Don’t let scammers rush you into a decision.