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7 Financial Scams to Avoid on the Internet

By Finserv MARKETS - Dec 28,2019
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Internet scams are abounding in today’s digital age. 7 in 10 Indians surveyed reported losing money to financial scams from fraudulent sources online. The methods of scamming vary greatly, from using malicious software to convincing you to share your financial details with strangers.

Here are 7 financial scams to avoid online.

How to Avoid Being Scammed Online

Lottery Scams

Lottery scams typically inform you that you have won first place in a lottery and are subject to receiving so-and-so amount. Besides not having entered any lottery, one way to identify a scam is when you’re required to pay an internet handling fee for your ‘winnings’ to be released. Legitimate lotteries do not require any such payment. Internet scams also pressure users to respond within a deadline, or the offer passes. This is also true for fake lottery financial scams.

Fake Software Updates

Fake software update popup ads look very convincing since they imitate a Windows or Macbook software update message. The malware, once downloaded, hacks your PC by preventing you from accessing it. The malware then has access to all your financial information like passwords, account numbers, and card details. To avoid such internet scams, it’s recommended to have an anti-virus installed on your PC. Financial tips for dealing with being hacked include getting Cyber Insurance.

Online Insurance Fraud

Insurance scammers reach our via email by offering to give you an instant quote online in exchange for purchasing insurance with their company. Insurance scams are a source of credit card fraud, which grew by 23% in 2017. One of the major financial freedom tips for youngsters is to work with Government verified companies.

Bajaj Allianz Unit-Linked Insurance Plans (ULIPs), available on Finserv MARKETS, is one such example, being authentic online insurance providers with a legacy in providing financial security. Bajaj Allianz ULIPs found on Finserv MARKETS offer a dual advantage. It lets you invest a section of your premiums in equities, debt or both, based on your choice. Thus, it provides a market-linked component. With three different types of plans – Child Plans, Investment Plans and Retirement Plans – you can choose the plan of your choice as per your unique needs and goals.

Fake Job Offers

Job offer scams use many internet portals to access their targets. Some even send direct messages on LinkedIn, saying that they have viewed your CV and would like to hire you instantly. To avoid such internet scams, do a thorough background check on the recruiter and their company. Additionally, inquire for any website links or address details to assess the legitimacy of the company.

Bitcoin Scams

Digital wallets are open to hacking. When it comes to the appeal of bitcoin, it is important to know that one’s sensitive data is always at risk of being stolen. Bitcoin scams come in the form of ‘Ponzi’ or ‘Pyramid’ Schemes that work by generating profits for early investors by hiring new investors in a never ending process. Pyramid schemes have been shown to yield negative returns for investors and only benefit the organization enabling them. Other financial scams using Bitcoin involve installing malware, and websites offering fake bitcoin exchanges.

Bank Loan Scam

Bank loan scams come with the fake guarantees of a large amount of money that the ‘bank’ has pre-approved for you. Just share your bank details and avail this huge loan instantly. Financial freedom tips to avoid bank loan scams involve asking questions like- ‘Why would a bank will lend you money without a detailed assessment of your financial situation?’, and ‘Have any trustworthy people you know successfully used such methods to take loans?’ Financial scams like this are preventable when using trustworthy organizations for your monetary needs.

Phishing

Phishing- which has grown by 65% in the last year- attempts to scam people by offering unimaginable rewards. It is the practice of sending emails with the intent of getting you to reveal personal information such as your password, address, and credit card number. Stats say that phishing accounts for 90% of data breaches, and 1 in 99 emails is a phishing email. It can be prevented by using spam filters, encrypting all your sensitive information, installing anti-virus, and using ad blockers.

In conclusion, financial freedom in 2019 comes at a cost. Don’t be part of the 40% of newly independent who get scammed online.

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522