Mudra Compass

It is a stark reality that fraudsters are continuously devising new and clever methods—often utilizing emerging technologies—often more quickly than law enforcement agencies can respond—to deceive individuals. However, every scam relies on fundamental tactics to convince victims of the authenticity of their requests.

These tactics frequently involve some form of impersonation, such as pretending to be your bank, a financial institution, or another service provider that sends emails or messages prompting you to take specific actions. They instill a sense of urgency or fear, pushing you to make payments or share sensitive information that you typically would not disclose.

C.H.E.C.K. list for ensuring safety

Since many payment scams tend to exhibit similar characteristics, there are ways to safeguard yourself and avoid becoming a victim of these schemes. I suggest using this C.H.E.C.K. list to defend against financial fraud:

In questionable scenarios, consider the following questions to help you decide on the appropriate steps to take.

Credibility: Is the payee reliable?

Fraudsters will always attempt to present themselves as trustworthy. Therefore, it’s essential to evaluate whether the person requesting payment is legitimate. Whenever you receive a request for any type of payment, it’s crucial to confirm the authenticity of the business and the nature of the request. Determine whether the inquiry originated from the actual business or an individual, or if it’s from someone impersonating someone you trust. Verify the email addresses, phone numbers, and other relevant information on the official business website, and proceed with the transaction only after you have confirmed the request’s credibility.

Haste: Does the request appear urgent or too good to be true?

Many poor decisions stem from a lack of time to properly consider them. Fraudsters often generate a sense of urgency, framing situations as emergencies to prevent their victims from having the mental clarity or time needed to evaluate their actions. For example, they may insist that you transfer money immediately or bombard you with repeated calls to throw you off balance. Numerous instances have been reported where individuals were told that their loved ones were in distress and required financial assistance. Consider whether the request feels excessively urgent or seems too good to be true. If you sense an unusual level of urgency, take a moment to pause and assess your options. Verify the request’s credibility before taking any action.

Excess Information: Am I being requested to provide too much personal information?

In India, nearly all payment methods necessitate an extra layer of authentication in addition to a PIN, password, or CVV for debit or credit cards. This secondary authentication factor is often an OTP, but it can also include other details, such as your date of birth. No legitimate financial institution will ever ask you for your PIN, password, or OTP for verification purposes. Moreover, you do not need to provide any PIN, password, or OTP to receive funds; these are only required for making payments. If someone insists that you share sensitive details like your complete card number, CVV, PIN, or passwords, they are requesting an excessive amount of personal information, and you should refrain from complying with such demands.

Control: Did I initiate this transaction?

Completely relinquishing control can lead to serious consequences, and this is precisely what fraudsters aim for. Whenever you make a payment, ensure that you are managing the process yourself. Reflect on whether you initiated the transaction or if it was an unexpected request. If you were the one to start the transaction, confirm that it is a legitimate one. If you feel pressured or are being asked to provide information that you are uncomfortable sharing, do not proceed with the transaction.

Known Platform: Is this transaction taking place on a secure platform?

The principle that there is only one authentic version applies to websites and applications as well, not just to art. It is crucial to ensure that you are conducting transactions on a legitimate and secure platform rather than a fraudulent site. Always access the official website directly through your browser instead of clicking on links, and only then should you proceed with any transactions. Only download and install verified applications on your mobile device. If you have any doubts about whether you are using a secure and reputable website, a trusted payment gateway, or a reliable POS machine or ATM, it is best to halt the transaction. Exercising caution in these situations can help you avoid significant losses. Staying vigilant is essential for preventing fraud. In questionable scenarios, consider these questions to help guide your next steps.

Conclusion

In a landscape increasingly vulnerable to deception, adopting the C.H.E.C.K. framework can empower individuals to protect themselves from financial fraud. By remaining vigilant and questioning the credibility, urgency, and security of transactions, you can significantly reduce the risk of falling victim to scams.