10 Ways Millennials Can Safeguard Themselves From Online Frauds

Nowadays, we see individuals from all age brackets use online modes of purchase. The senior citizens could be seen still a little reluctant when using online services, but millennials prefer to buy everything, right from groceries to expensive gadgets, online. While banks, other financial institutions, and merchants take all the necessary precautions to protect your hard-earned money and personal information from online frauds, there are fraudsters in every sector who try to find loopholes in the system and make money illegally. But the good news is that you can completely avoid online scams and fraud by taking some simple precautions.

Here are 10 ways millennials can safeguard themselves from online frauds:

1. Browse Authentic Websites and Download Authentic Apps:

We receive several informative and marketing emails from the banks all the time that consists of a link to the bank's official website. There are many incidents where fraudsters send similar emails to individuals, asking them to click on the URL to get benefited from certain offers. If you click on the URL, it will take you to a website that is designed exactly like your bank's website, which gives you confidence that you are using an authentic website. However, when you input your login credentials, it records the data you have inputted. This information is further used by fraudsters to steal your money. Some mailers may ask you to click on a certain URL, and while doing so, it starts downloading the tracking malware to your device. Therefore, it is advisable to check the sender of an email whenever it directs you to perform an action. Instead of clicking on any link, it is better to type the website link by yourself. And, whenever you click on a bank's website, even from a search page, recheck if it is an authentic website of the bank or not. Also, do not forget to check if the URL starts with an https.

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The same applies to downloading a mobile banking app of the bank, UPI app, or any other payment app. The fraudsters can create similar-looking apps to steal your login credentials. Therefore, it is advisable to check whether it is an official app or not. Most banks provide links or scanning codes to download the app, which can be very helpful in getting the trusted app. So, be very careful before downloading any app or putting your login credentials.

This practice of identity theft is called phishing, and it is one of the most common types of stealing personal information.

2. Use a Secure Internet Connection:

Many people still use public computers in cyber cafes or libraries. However, such places are often crowded, and there are chances that someone sees your login credentials or you might mistakenly save them on a public computer. Such crucial information can be used by hackers to steal money from your bank account. Therefore, it is advisable to avoid using public computers for online banking. But, if you have no choice, you need to take extra precautions and safeguard your account. Make sure no one is around you, and check for the cameras that might capture the information you input. Plus, once you are done, do not forget to clear the history from the browser in order to delete any saved information of your bank credentials.

Apart from this, nowadays, we find public WiFi spots everywhere, and it tempts people to use them. However, one should avoid using public WiFi as there are more chances of electronically eavesdropping while using a public network. Many public WiFi networks are unencrypted, and therefore, hackers can steal your sensitive data for their gain. But, if you have to use it during an emergency, you should always check if the website is encrypted or not by checking if the website URL starts with https. Read the red flag if the website URL starts with http. Moreover, if you are tech-friendly, it is advisable to disable file sharing and use Virtual Private Network (VPN), which only you can use.

3. Use Your Credit Card Vigilantly:

You might have seen a couple of TV commercials running to spread awareness about phishing. It is the act of soliciting card information personally, where the fraudsters call the victim and pretend to be from a reputed company or a bank. The fraudsters give a believable reason, such as the credit card details need to be updated or there is suspicious activity on your credit card, etc. They ask the victim to follow a certain link, and the victim lands on a web page that looks like an authentic website of the company he already knows about. The victim will be asked to enter his/her credit card details. The caller will then ask for an OTP, and it is used to make a fraudulent transaction. The caller may also ask the answers to the security questions the victim chose while creating their internet banking or credit card login. This data can be used to gain access to one's online credit card account.

However, the bank or credit card issuer or any other legitimate company will never ask for your confidential information, such as credit card number, CVV, security questions (name of your childhood friend, mother's maiden name, your father's native place, etc) or OTP. Therefore, you should never provide such details to anyone over an unsolicited call. Furthermore, you should not click on any link that requires immediate action and does not come from an official source. Complain immediately about such phishing attempts with caller details to the police station so that such events could be avoided in the future.

4. Set a Strong Password:

People generally set their passwords based on their personal information like name and date of birth, which is easy for them to remember. However, such passwords can easily be guessed by hackers. Therefore, as all the banks advise, it is vital to set a strong and unique password and change it after every three months. While creating a password, the bank will advise you on how your password should be, such as it should be of a minimum of eight characters, a combination of numbers and alphabets, a combination of uppercase and lowercase, special characters, etc. Apart from this, you should take these extra precautions while setting your online banking password:

• Never use your personal information, such as your name, your spouse's or child's name, your pet's name, your or your close one's date of birth, your hometown or current city name, etc., to create your password.

• Always set longer passwords, and choose phrases instead of single words.

• Always try to avoid using common words or sequences, such as 1234, 0000, abcd, etc., in the password.

• Do not forget to change your password after every three months and avoid repeating the old passwords. Come up with a new password every time you change it.

5. Use Two-factor Authentication:

Most online payment modes offer two-factor authentication for logging in and making payments. It is advisable to enable it even if it is not mandatory, as it adds a second layer of security to your online banking information.

Different financial institutions require you to use different authentication. You need to check which authentication is added by your bank/financial institution by logging into your online account. The most used types of second authentications are - four-digit Personal Identification Number (PIN), One-Time-Password (OTP) on your registered mobile number or/and email address, identification of a preselected image, automated phone call on your registered mobile number, etc.

Although it makes the login process a little slower, it is worth the security it provides to your banking information.

6. Pay Attention to UPI Money Requests:

The UPI apps have a 'request money' feature that lets you request your contacts for any contribution or dues they need to pay you. Although it seems like a really helpful feature, it has been misused by scammers. The scammers send you the 'receive money' request with the amount they want from you. You will see two options whenever you get such a request; 'pay' and 'decline.' If you know the other person and the request is genuine, you can tap on the 'pay' option to make the payment. The fraudsters generally send such requests with a message indicating you will receive the funds in your bank account after entering the PIN. However, once you press the 'pay' option and enter your PIN, the money gets deducted from your account. Hence, you should always remember that you never have to enter your PIN to receive the money. Instead of simply ignoring such fraudulent requests, tap on 'decline' and, if possible, report the same.

7. Do Not Share Your Sensitive Information:

Although this could be the most common advice people receive on safe online banking, a large number of people still ignore it. But, here we are saying it again - do not share your login details, PINs, debit and credit card number, CVV number on the back of your card, or OTP, etc. with anyone. Fraudsters usually call senior citizens, homemakers, etc. and pretend to be bank representatives. But they have seen targeted busy millennials in many past incidents. You should know that no bank requires such sensitive information to perform any banking transactions, and they never ask for it. So, think twice before taking any action.

8. Enable Transaction Alerts:

You may forget to check your transaction details after performing a particular transaction. But, enabling SMS and email transaction alerts can help you to keep an eye on your bank account. You will receive a notification whenever a transaction takes place in your account, and if you have not done it, you should immediately inform your bank/financial institution. Furthermore, you can also set daily/weekly balance alerts if you do not get time to check the entire statement.

9. Use Antivirus and Update it Regularly:

While browsing the internet, several viruses like Trojan or malware and spyware can get installed on your computer. Such viruses not only track your online activity but can also read all your sensitive data, such as your personal information, passwords, debit and credit card numbers, CVV, PIN, etc. To avoid this, it is recommended to install antivirus software and renew it on a timely basis. Moreover, nowadays, the usage of mobile phones has increased tremendously, and frauds are mostly happening through mobile phones, which are higher in number than computers. You should be careful while downloading any unauthorised apps as they can read all your sensitive information. Therefore, it is advisable to use antivirus on your mobile phone as well.

10. Use Minimum Online Payment Modes:

With most things being available online, most millennials prefer online shopping for all their needs. Hence, different merchants offer discounts on online payments through different apps to attract customers. As a result, online shoppers use multiple payment apps to gain maximum benefits. However, using multiple payment apps increases the risk of getting scammed. Hence, it is advisable to use one or two payment apps for all your transactions. Besides, to ensure maximum security, it would help if you update the apps regularly.

To conclude:

Internet banking, mobile banking, UPI, debit cards, and credit cards are the most convenient ways to perform banking transactions and hence, millennials prefer them over carrying cash. Banks and other financial institutions take many precautionary measures to avoid online fraudulent activities by providing multi-factor authentication and data encryption, making it mandatory to change your password after every three to six months, and so on. Furthermore, the Reserve Bank of India (RBI) has stated that for any unauthorised or fraudulent transaction, you can get a full refund if you inform the bank immediately. However, the process can be tedious and time-consuming. Hence, as discussed above, it is an equal responsibility of the customers to take necessary precautions on their end.

Warm Regards,
Ketki Jadhav
Content Writer