Online frauds have been on the rise in India over the past 5-6 years as UPI and online transactions have increased over time.
Recently a person accidentally lost Rs 56,000 in an online scam and he wanted to go on a tour, while searching online, he came across a website with the tour operator number, where he called and inquired. Everything looked genuine and after some basic checks, the entire UPI transfer of Rs 56,000 was made.
As soon as he sent the money, he realized that he was a victim of fraud. Generally, this person is very cautious and does not trust these types of online contacts, but in this case, there was a rush and overconfidence because he had made some online bookings in a similar manner recently.
While we are all aware of these scams and try to be cautious, we all may fall for them as the other side will come up with new tricks to trap us.
10 Precautions to Take Before Sending Money to Someone Online
Let's take a look at some basic checks and precautions that we should take to prevent online fraud while transferring money to another person online for any tours, travel, hotels, or shopping purposes. Let's look at them one by one
- Search the number/company name on Google
A short search on the person's phone number or email can sometimes reveal a lot of details. If the same person has cheated on others, there is a good chance that you will get some clues about it. For example when searching the number 9339258256 online, the same number is listed for different businesses which clearly shows that it is a scam.
- Use NEFT/IMPS transfer instead of UPI
UPI is fast and secure, but only has value if you transfer money to the right and genuine person. The problem with UPI is that it hides the person's details and provides a scan code or simple details that don't tell much about the person. If in doubt, always ask for bank details to transfer money through NEFT or IMPS.
It will give you details like at least one bank account, account holder name and branch. You can use it to easily check or complain with the bank. Also, the name of the bank account will be that of an individual.
- Don't rush
Don't make quick decisions when sending large sums of money. Sometimes, when you rush things at the last minute, small inaccuracies are often overlooked. Also, your mind may not go into the details that might prevent a fraud. Always start a conversation with the person, talk to them once, wait for hours/days, and then make exchanges only after proper research.
- Always transfer only advance money first
Most of the time, things look genuine and people pay the full amount to avoid the headache of paying the balance later. They trust others too much. As far as possible, always pay the advance first and pay the balance later. This gives you plenty of time and even if you get caught, you won't lose all your money to the scam.
- Continuous callbacks are a red flag
Most fraudsters/scammers have a tendency to spam you with repeated calls and messages. This is how the “NGO Scam” came about.
This is a big danger sign. Sometimes the legs may come by saying that one is senior and a higher official. If this happens in your case, be very careful about it.
- Verify the number or contact online groups/sites
Most real businesses have a strong online presence. They can have their own website, Facebook page, Instagram page or any other social media identity. You can read other people's reviews, publish their phone numbers there and mention other details like address and business details.
Not that crooks can't create these, but it's a very simple checkpoint. People who are victims of fraud can be found through such checks and can save themselves.
- Search on Truecaller
Another great trick is to check the phone number on the Truecaller app. The scammer or the same phone number must have been tagged as “scam”, “spam” or similar words by others. This will give you some clues about their personality.
- Ask for GST / Check / References etc
One thing you can do is ask for a check copy and give them an excuse that you can pay from your corporate account, which is a mandatory requirement of the company. This way you will get all details of account holder, branch and account number. You can cross-check whether the account belongs to the same person or not. Many scammers do not use their own account. This can be grounds for further questioning and you may catch a cheater. If a business entity, ask for a GST number etc as extra security.
- Don't trust ads from random low key websites
Never trust people or phone numbers listed on low-key websites, after all they are listing their business on untrustworthy dead sites. A person searching on Google can find it in the search engine.
- Trust the gut feeling
Finally, you should listen to your gut feelings and if you feel that things are not right, it is better not to do the deal. Talk to the person you are transferring money to, pay attention to their language, their tone, and many other small things. Then trust your gut and don't trade or wait too long.
Extra precautions should be taken
- Do not share OTP or PIN with anyone whatsoever
- Do not respond to calls claiming to be from the RBI, IRDA, or the Tax Department asking for your personal information.
- You never need to enter UPI PIN to send money on any UPI app. Many scammers say they're sending you money but have sent you a "payment request".
- Never give anyone access to your screen sharing for support purposes. Don't use software like Teamviewer or Anydesk
Actions to be taken in case of loss of money in any online scam
- Complain to Cyber Cell immediately
- File an FIR if the amount is large.
- Share about the event on Twitter and other social media channels you are a part of
