10 Ways to Protect Yourself from Bank Fraud

In 2024, the Reserve Bank of India reported more than 13,000 bank fraud cases nationwide. While advancements in digital finance have revolutionised banking and transaction handling, fraudsters have constantly found ways to deceive individuals despite numerous security measures.

While eliminating bank fraud may be arguable, staying vigilant and aware is key to protecting yourself from fraudsters. So, in this blog, we highlight 10 ways you can safeguard yourself and your finances that will help you avoid falling victim to banking fraud.

1. Perform regular monitor checks

   The foremost hygiene check is regularly monitoring your bank accounts and looking for unusual activities through messages, emails, and bank statements. Doing so will alert you of any suspicious activities or transactions pertaining to bank fraud. If you detect anything unusual, immediately contact the bank authorities to secure your account.

2. Use two-factor authentication

   Also known as 2FA, it is an additional layer of security used to protect your financial details and identity. When you log in to your bank account, the system sends an OTP to your registered mobile number. This confirms it is you who has logged in and alerts if done from a new device, securing your account from potential bank fraud.

3. Opt for a unique password

   Your password is one of the most important ways to protect your crucial account and transaction details from being invaded. A strong password will make it difficult for scammers to guess. Create a unique password that is an alphanumeric combination of letters and symbols, making it impenetrable to breach. Avoid writing or saving your password so that anyone can easily access it.

4. Pick the correct security question

   Your bank may also require you to set up a security question when creating a password. It serves as a backup option if you forget your password or cannot access your email or phone. It is pivotal to pick a question that only you can answer, and that is not guessable by others. Choosing a thoughtful question is the key to securing your account from bank fraud.

5. Avoid unknown public Wi-Fi

   While it may look convenient, using free public Wi-Fi can lead to paying a hefty price. Public Wi-Fi is also unsecured and an ideal hacker’s den to put an individual’s account in peril and create an easy gateway to steal data. There can also be the possibility of hackers setting up fake Wi-Fi to breach crucial information. Therefore, avoid using public internet connections while making bank transactions.

6. Think twice before you click

   Visiting unknown websites and downloading pirated content makes it easier for fraudsters. They can build legitimate websites that look too good to be true. However, they are a trap to which people often fall prey. Researching the credibility of their source can keep individuals one step ahead of scammers and their fraudulent schemes.

7. Download security software

   It's challenging to keep track of every website you visit or things downloaded from them. With an increase in online malware, antivirus software is a safe bet. It shields your device against viruses and scans for malicious codes. Moreover, it keeps updating itself and acts as an invisible shield that protects individuals against viruses that may go unnoticed.

8. Do proper disposal of documents

   Disposing of documents is a mundane task you might ignore. However, lousy disposal is an open invitation to various types of fraud. A shredder machine can prove beneficial in preventing such scenarios. A shredder works by slicing documents into fine, thin strips, making them impossible to read.

9. Avoid oversharing

   Social media has become integral to our daily lives. Nevertheless, it doesn't make it risk-free; oversharing your personal information on social platforms might bridge the gap between you and scammers. Avoid sharing personal details such as credit or debit card numbers and personal addresses to ensure a secure user experience.

10. Keep learning

    As a coin has two sides, the increasing use of digital payments and online banking is causing a rise in common types of fraud, such as phishing, skimming, and SIM swaps. One ought to learn and become accustomed to different kinds of cybercrime, ways to detect false activities, and proactive measures to fortify a solid digital presence.

Safeguarding yourself against the rising number of frauds is more important than ever. Think of it as an essential investment – just as you work hard to earn your income, protecting your financial identity is an investment in your security.

With authorities such as the RBI spreading awareness against banking fraud, one must take simple yet precautionary measures. Ultimately, it’s your hard-earned money, and you owe it to yourself a prosperous financial future.

Also read: How to Protect Recognise a Fake Loan App and Protect Yourself