What are the Types of Bank Scams?

We all have been hearing about bank scams around us. There are many social media videos going viral for the variations of scams being pulled off these days. I have compiled a list for you. Here are some common types of bank scams prevalent in India: 1. Phishing Scams: Fraudulent emails that appear to be from legitimate banks, asking recipients to click on a link and provide personal information such as login credentials or credit card numbers. Similar to email phishing but conducted through SMS. The message often contains a link to a fake website designed to capture sensitive information. 2. Vishing (Voice Phishing): Fraudsters call individuals, pretending to be bank officials or representatives from financial institutions, and ask for personal information like OTPs (One-Time Passwords), PINs, or account details. 3. ATM Skimming: Fraudsters install skimming devices on ATMs to capture card details and PINs of users. This information is then used to create duplicate cards and withdraw money fraudulently. 4. Card Cloning: Similar to ATM skimming, but involves creating a duplicate of a credit or debit card using the stolen data. The cloned card is then used to make unauthorized transactions. 5. Online Banking Frauds: Unauthorized access to a person's online banking account to transfer funds. Malware or spyware installed on a user's computer or mobile device to capture login credentials and other sensitive information. 6. Cheque Frauds: Altering the details on a cheque (such as the amount or payee name) to commit fraud. Using stolen cheques to withdraw money from a victim's account. 7. Ponzi Schemes and Investment Frauds: Fraudulent investment schemes promising high returns with little risk. These often involve new investors' funds being used to pay returns to earlier investors, creating a cycle that collapses when new investments stop. 8. Identity Theft: Using someone's personal information without permission to commit fraud, such as opening bank accounts, taking loans, or making purchases in the victim's name. 9. Impersonation Frauds: Fraudsters impersonate bank officials, government representatives, or other trusted entities to deceive individuals into sharing their bank details or transferring funds. 10. Social Engineering Scams: Manipulating individuals into divulging confidential information or performing actions that compromise their financial security, often through psychological manipulation. 11. KYC Frauds: Fraudsters pose as bank representatives asking for KYC (Know Your Customer) updates and then use the collected information to access the victim’s bank accounts. These are some common fraud types in banking. Secure Home Loans at Lowest Interest Rates Without any Hassle with NoBroker Home Loan Services Read more How to Identify Home Loan Fraud in India