How to avoid digital lending scams this festive season
It is essential to exercise caution to safeguard your hard-earned money and personal information
- Oct 20, 2023,
- Updated Oct 20, 2023 1:26 PM IST
In this rapidly evolving digital landscape, all of us must stay vigilant, especially during the festive season when online transactions tend to surge. Digital lending scams have unfortunately become more prevalent, preying on the trust and excitement that often accompany these celebrations.
It is essential to exercise caution to safeguard your hard-earned money and personal information and follow some simple guidelines.
1. Shop from trusted sources: You must stick to reputable websites and well-known retailers. Be cautious about unfamiliar online stores offering too good-to-be-true deals. Also, it would help if you always verified the legitimacy of the lending platform you are considering. Check for official licenses and credentials and look for user reviews and ratings. Reliable platforms have a track record of satisfied customers, a valuable indicator.
"Verify the website's URL before entering personal or payment information. View the padlock symbol in the address bar, indicating a secure connection (https)," said Amit Kumar, Chief Technology Officer, Easebuzz.
2. QR code scams: Fraudsters email users with fake QR codes that look like real payment codes. The malware is silently installed on their devices when the victims scan the codes. Individuals should only scan QR codes from trusted sources and not use QR codes posted publicly or provided through non-trustworthy channels.
"Regularly review your SMS for transactional amounts debited and bank and credit card statements for unauthorized transactions. Report any suspicious activity promptly," said Kumar.
Also read: Here’s how you can maximise your savings during festive shopping
Also read: Perfect credit card for your financial needs: Here's what you should do
Also read: I am 30. How should I go about planning for the purchase of a flat worth Rs 1 crore in 1 year?
3. Beware of phishing emails: Don't click on doubtful links or download attachments from unsolicited emails. Scammers often use phishing emails to steal personal information.
Shikhar Aggarwal, Chairman of BLS E-Services, says, "One must be wary of unsolicited messages, emails or calls from unknown lenders offering deals that seem too good to be true. Scammers often use high-pressure tactics to lure unsuspecting individuals. You should initiate contact with lending institutions yourself or through trusted sources."
4. Use strong passwords: Create complex, unique passwords for each online account. Consider using a password manager to keep track of them. "Never share sensitive information like your Aadhar, PAN, or banking details through unsecured channels. Secure websites and official mobile apps are your safest bet for such transactions," said Aggarwal.
5. Secure your device: Keep your devices, including smartphones and computers, updated with the latest security software and patches. Install reliable antivirus software and firewalls.
Moreover, if you ever encounter a suspicious lending offer or experience a scam, report it immediately to the relevant authorities. Your vigilance can help protect others from falling victim to these unscrupulous practices.
In this rapidly evolving digital landscape, all of us must stay vigilant, especially during the festive season when online transactions tend to surge. Digital lending scams have unfortunately become more prevalent, preying on the trust and excitement that often accompany these celebrations.
It is essential to exercise caution to safeguard your hard-earned money and personal information and follow some simple guidelines.
1. Shop from trusted sources: You must stick to reputable websites and well-known retailers. Be cautious about unfamiliar online stores offering too good-to-be-true deals. Also, it would help if you always verified the legitimacy of the lending platform you are considering. Check for official licenses and credentials and look for user reviews and ratings. Reliable platforms have a track record of satisfied customers, a valuable indicator.
"Verify the website's URL before entering personal or payment information. View the padlock symbol in the address bar, indicating a secure connection (https)," said Amit Kumar, Chief Technology Officer, Easebuzz.
2. QR code scams: Fraudsters email users with fake QR codes that look like real payment codes. The malware is silently installed on their devices when the victims scan the codes. Individuals should only scan QR codes from trusted sources and not use QR codes posted publicly or provided through non-trustworthy channels.
"Regularly review your SMS for transactional amounts debited and bank and credit card statements for unauthorized transactions. Report any suspicious activity promptly," said Kumar.
Also read: Here’s how you can maximise your savings during festive shopping
Also read: Perfect credit card for your financial needs: Here's what you should do
Also read: I am 30. How should I go about planning for the purchase of a flat worth Rs 1 crore in 1 year?
3. Beware of phishing emails: Don't click on doubtful links or download attachments from unsolicited emails. Scammers often use phishing emails to steal personal information.
Shikhar Aggarwal, Chairman of BLS E-Services, says, "One must be wary of unsolicited messages, emails or calls from unknown lenders offering deals that seem too good to be true. Scammers often use high-pressure tactics to lure unsuspecting individuals. You should initiate contact with lending institutions yourself or through trusted sources."
4. Use strong passwords: Create complex, unique passwords for each online account. Consider using a password manager to keep track of them. "Never share sensitive information like your Aadhar, PAN, or banking details through unsecured channels. Secure websites and official mobile apps are your safest bet for such transactions," said Aggarwal.
5. Secure your device: Keep your devices, including smartphones and computers, updated with the latest security software and patches. Install reliable antivirus software and firewalls.
Moreover, if you ever encounter a suspicious lending offer or experience a scam, report it immediately to the relevant authorities. Your vigilance can help protect others from falling victim to these unscrupulous practices.