Festive Season Special – 6 financial fraud tactics to be wary of
Impersonating authority figures, confusing you with jargon, leveraging fake social influence, or creating a false sense of urgency, scammers try to trick you into revealing your financial details.
Written by Adhil Shetty
The festive season is upon us, and brands are rolling out their annual offers and deals. This is the time of year many people eagerly await, especially if they have big purchases planned.
However, this excitement comes with the rush to grab the best deals and maximize savings.
Unfortunately, this eagerness is exactly what fraudsters take advantage of. A recent BankBazaar report titled ‘Fear, Fraud, and Finances: 6 Ways Scammers Prey on Your Mind & How You Can Defend yourself’ highlights the psychological tactics used by scammers to deceive and manipulate unsuspecting shoppers. Impersonating authority figures, confusing you with jargon, leveraging fake social influence, or creating a false sense of urgency, scammers try to trick you into revealing your financial details. Let’s explore the finer details of these tactics and the signs you can watch out for to avoid becoming a victim of such schemes.
1. Creating Urgency and Scarcity
This tactic involves the scammer creating a sense of urgency, often with reasons like your bank account or credit card have been compromised, and you must act quickly to avoid losing your money. For added credibility, they may send you emails or texts mimicking your bank, pressing you to share sensitive information or click a link.
What to do:
🔴 Always remember that banks and financial institutions will never request personal information through unsolicited calls, emails, or messages.
🔴 If you are suspicious of any communication claiming to be from your bank, verify it by directly contacting your bank via official channels.
🔴 Beware of ‘limited-time offers’ or ‘special discounts’ that create urgency and pressure you into making hasty purchases. Always verify the legitimacy of the source before acting.
2. Faking Authority & Credibility
Scammers impersonate authority figures like bank officials, law enforcement officers, or government representatives, using emails or websites that appear genuine, to enhance their credibility. They contact you with a fabricated issue, claiming it needs immediate attention, and pressure you to share sensitive banking or personal information. They then exploit these details to access your bank accounts and steal your money.
What to do:
🔴 Always inspect and verify the sender’s email address, website URL, or phone number.
🔴 Look for subtle red flags like misspellings or inconsistencies in font on websites or emails – these are often indictors of phishing scams.
🔴 Never share your sensitive financial information like bank account details, banking OTPs, card CVVs or any other sensitive information with anyone.
🔴 If you are contacted by someone claiming to be from your bank, hang up and call the bank directly via an official channel to verify the issue.
3. Using flattery or social influence
Scammers pretend to share common backgrounds or interests to build trust, or use flattery or fake testimonials to subtly manipulate people to comply with their requests. For instance, a scammer befriends you pretending to share your financial struggles, offering you an exclusive investment opportunity to help you.
What to do:
🔴 Beware of investment opportunities, unsolicited offers, or emails that seem too good to be true.
🔴 Never take anything at face value, always do your own research before making any decisions, especially with money.
4. Exploit your publicly-available social media information
Many people share personal details such as their birthday, contact details, recent purchases, etc., on social media platforms. Fraudsters can exploit this information to devise a convincing scam or even impersonate you.
What to do:
🔴 Be cautious and selective about what you share online.
🔴 Adjust your privacy settings to ensure your online activity is protected.
5. Emotional Manipulation
Scammers exploit human emotions such as greed, fear, desperation, or sympathy to manipulate their targets. They may tempt you with a once in-a-lifetime offer, claim a loved one is in danger, offer financial help during tough times, or fabricate a story to gain your sympathy. All these tactics are devised to prompt impulsive actions.
What to do:
🔴 Stay calm, pause, and assess the situation.
🔴 If something doesn’t feel right, consult a family member, trusted friend, or financial advisor before taking any action.
6. Using cognitive manipulation to confuse
Scammers use psychological tactics like optimism bias, where victims feel unlikely to be defrauded, and confirmation bias by focusing only on details that validate the scam. They overwhelm targets with excessive information, blending real and fake details, to create confusion. They also mirror the victim’s language to build familiarity to make their scam appear genuine.
What to do:
🔴 Be sceptical of unexpected requests for information, even if they seem legitimate.
🔴 Verify details through official sources before taking any action.
🔴 Reduce your exposure by avoiding sharing personal details on social media.
🔴 Take your time to assess the situation and verify details and identities. Don’t be hasty.
The festive season is a time of joy but also heightens the risk of scams. Be aware of potential manipulative practices to protect your wealth and enjoy this wonderful time without stress.
The writer is the CEO, BankBazaar.com.
Written by Adhil Shetty
The festive season is upon us, and brands are rolling out their annual offers and deals. This is the time of year many people eagerly await, especially if they have big purchases planned.
However, this excitement comes with the rush to grab the best deals and maximize savings.
Unfortunately, this eagerness is exactly what fraudsters take advantage of. A recent BankBazaar report titled ‘Fear, Fraud, and Finances: 6 Ways Scammers Prey on Your Mind & How You Can Defend yourself’ highlights the psychological tactics used by scammers to deceive and manipulate unsuspecting shoppers. Impersonating authority figures, confusing you with jargon, leveraging fake social influence, or creating a false sense of urgency, scammers try to trick you into revealing your financial details. Let’s explore the finer details of these tactics and the signs you can watch out for to avoid becoming a victim of such schemes.
1. Creating Urgency and Scarcity
This tactic involves the scammer creating a sense of urgency, often with reasons like your bank account or credit card have been compromised, and you must act quickly to avoid losing your money. For added credibility, they may send you emails or texts mimicking your bank, pressing you to share sensitive information or click a link.
What to do:
🔴 Always remember that banks and financial institutions will never request personal information through unsolicited calls, emails, or messages.
🔴 If you are suspicious of any communication claiming to be from your bank, verify it by directly contacting your bank via official channels.
🔴 Beware of ‘limited-time offers’ or ‘special discounts’ that create urgency and pressure you into making hasty purchases. Always verify the legitimacy of the source before acting.
2. Faking Authority & Credibility
Scammers impersonate authority figures like bank officials, law enforcement officers, or government representatives, using emails or websites that appear genuine, to enhance their credibility. They contact you with a fabricated issue, claiming it needs immediate attention, and pressure you to share sensitive banking or personal information. They then exploit these details to access your bank accounts and steal your money.
What to do:
🔴 Always inspect and verify the sender’s email address, website URL, or phone number.
🔴 Look for subtle red flags like misspellings or inconsistencies in font on websites or emails – these are often indictors of phishing scams.
🔴 Never share your sensitive financial information like bank account details, banking OTPs, card CVVs or any other sensitive information with anyone.
🔴 If you are contacted by someone claiming to be from your bank, hang up and call the bank directly via an official channel to verify the issue.
3. Using flattery or social influence
Scammers pretend to share common backgrounds or interests to build trust, or use flattery or fake testimonials to subtly manipulate people to comply with their requests. For instance, a scammer befriends you pretending to share your financial struggles, offering you an exclusive investment opportunity to help you.
What to do:
🔴 Beware of investment opportunities, unsolicited offers, or emails that seem too good to be true.
🔴 Never take anything at face value, always do your own research before making any decisions, especially with money.
4. Exploit your publicly-available social media information
Many people share personal details such as their birthday, contact details, recent purchases, etc., on social media platforms. Fraudsters can exploit this information to devise a convincing scam or even impersonate you.
What to do:
🔴 Be cautious and selective about what you share online.
🔴 Adjust your privacy settings to ensure your online activity is protected.
5. Emotional Manipulation
Scammers exploit human emotions such as greed, fear, desperation, or sympathy to manipulate their targets. They may tempt you with a once in-a-lifetime offer, claim a loved one is in danger, offer financial help during tough times, or fabricate a story to gain your sympathy. All these tactics are devised to prompt impulsive actions.
What to do:
🔴 Stay calm, pause, and assess the situation.
🔴 If something doesn’t feel right, consult a family member, trusted friend, or financial advisor before taking any action.
6. Using cognitive manipulation to confuse
Scammers use psychological tactics like optimism bias, where victims feel unlikely to be defrauded, and confirmation bias by focusing only on details that validate the scam. They overwhelm targets with excessive information, blending real and fake details, to create confusion. They also mirror the victim’s language to build familiarity to make their scam appear genuine.
What to do:
🔴 Be sceptical of unexpected requests for information, even if they seem legitimate.
🔴 Verify details through official sources before taking any action.
🔴 Reduce your exposure by avoiding sharing personal details on social media.
🔴 Take your time to assess the situation and verify details and identities. Don’t be hasty.
The festive season is a time of joy but also heightens the risk of scams. Be aware of potential manipulative practices to protect your wealth and enjoy this wonderful time without stress.
The writer is the CEO, BankBazaar.com.
