Festive Season Financial Fraud : The festive season is here and product brands are rolling out their annual offers and deals. Everyone eagerly awaits this time, especially when planning some big purchases. However, along with this excitement comes the race to get the best deals and maximize savings. Unfortunately, this excitement is also taken advantage of by fraudsters. A recent BankBazaar report titled 'Fear, Fraud, and Finances: 6 Ways Scammers Prey on Your Mind & How You Can Defend Yourself' explains how scammers use psychological tricks to deceive naïve buyers and trap them in their net. Read below to know how people are cheated and how to avoid their tricks.

Creating Urgency

In this trick, the fraudsters create a sense of urgency, like there is a problem with your bank account or credit card and you need to act immediately to avoid losing money. To convince you, they may send you emails or messages that look like your bank account and pressure you to share important information or click on a link.

What to do?

• Always remember that banks and financial institutions never ask for personal information through unsolicited calls, emails, or messages.
• If you are suspicious of any communication that claims to be from your bank, confirm it by contacting your bank directly.
• Be cautious of 'limited-time offers' or 'special discounts' that entice you into making a hasty purchase. Check the source before taking any action.

Pretending to have authority and credibility

Fraudsters pose as bank officials, law enforcement officers, or government representatives, using authentic-looking emails or websites to boost their credibility. They contact you about a false problem they claim needs immediate attention and pressure you into sharing sensitive banking or personal information. They then use this information to gain access to your bank accounts and steal your money.

What to do?

• Always check and verify the sender's email address, website URL, or phone number.
• Pay attention to small signs like mistakes or inconsistencies in font on websites or emails – these are often signs of phishing scams.
• Never share your important financial information like bank account details, banking OTP, card CVV, or any other sensitive information with anyone.
• If someone claims to be from your bank, hang up and contact the bank directly to confirm the issue.

Using flattery or social influence

Scammers pretend to have a similar background or interests to you so they can win your trust or use flattery and fake praise to get you to agree with them. For example, a scammer pretends to be a friend of your financial problems and offers you a special investment opportunity to help you.

What to do?

• Be wary of investment opportunities, unsolicited offers, or emails that seem too good to be true.
• Don’t take anything for granted, always do your own research before making any decisions, especially when it comes to money matters.

Exploiting your publicly available social media information

Many people share personal information on social media platforms like their birthdays, contact details, recent purchases, etc. Fraudsters can use this information to pull off a convincing scam or even steal your identity.

What to do?

• Be careful and selective about the information you share online.
• Adjust your privacy settings to help protect your online activity.

Emotional manipulation

Scammers manipulate their targets by exploiting human emotions such as greed, fear, desperation, or sympathy. They may lure you with a once-in-a-lifetime opportunity, claim a loved one is in danger, offer financial help during a difficult time, or make up a false story to gain your sympathy. All of these tricks are intended to hasten action.

What to do?

• Assess the situation while keeping your composure.
• If something doesn’t feel right, consult a family member, trusted friend, or financial advisor before taking any action.

Using mind-bending techniques

Scammers use techniques of mental manipulation, where the victim believes they cannot be deceived, and confirmation bias, where the scammers focus only on details that justify the scam. They overwhelm you with excessive information, mixing real and fake details to create confusion. They build familiarity by mimicking the victim's language so that their scam seems genuine.

What to do?

• Be skeptical of unexpected requests for information, no matter how legitimate they may seem.
• Before taking any action, verify the details from official sources.
• Minimize the risk by avoiding sharing your publicly available personal information.
• Take your time to assess the situation and confirm details and identity. Don't rush.

The festival season is a time of joy, but it also brings with it an increased risk of fraud. Be aware of potential manipulative moves to protect your assets and enjoy this wonderful time without stress.