As India braces for a future of digital payments, how secure is your account from payment frauds? Here is a list of such frauds that you must watch out for!

1. Payment Frauds in India

2. Payment fraud and
types of payment
frauds
What are Payment Frauds?
Payment fraud is classified as:
1. Fraudulent or unauthorized transactions
2. Lost or stolen merchandise
3. False requests for a refund, return or bounced cheques
1. Online Shopping Scams
2. Job and Employment Scam
3. ATM Scam
4. Debit card & Credit card Scam
5. Lottery Scam
6. Overpayment Scam
7. Phishing Emails and phony web pages
8. Nigerian Scam/ 419
Types of frauds
Scamwatch.gov

3. Online Scam and
how this
scam works?
How this Scam works?
A product is advertised at an
unbelievably low price, or
advertised to have amazing
benefits or features that sound
too good to be true
The other party insists on
immediate payment, or
payment by electronic funds
transfer or a wire service. They
may insist that you pay up-front
for vouchers before you can
access a cheap deal or a give-
away
An online seller may have a
poor rating, or for any other
reason, the seller would want
to complete the sale outside of
the website. If you do this, you
lose any protection offered by
the website operator
An online retailer does not provide
adequate information about
privacy, terms and conditions of
use, dispute resolution or contact
details. The seller may be based
overseas, or the seller does not
allow payment through a secure
payment service such as PayPal or a
credit card transaction
What is Online Shopping Scam?
Online shopping scams involve scammers pretending to be legitimate online sellers, either with a fake website
or a fake ad on a genuine retailer site
Scamwatch.gov

4. How to protect
yourself from this
scam?
Sign new cards as
soon as they
arrive, and cut old
cards through the
magnetic strip and
the chip once
they’ve expired or
been cancelled
When using e-commerce
websites, check all
reviews about the seller
you are considering
buying from. Never trade
outside of the website
Check if the website
has a refund or
returns policy, and
that their policies
sound fair
When making online
payments, only pay for
items using a secure
payment service—look
for a URL starting with
‘https’ and a closed
padlock symbol, or a
payment provider such as
PayPal
Avoid any arrangement
with a stranger that asks
for up-front payment via
money order, wire transfer,
international funds
transfer, pre-loaded card or
electronic currency. It is
rare to recover money sent
this way
Scamwatch.gov

5. Job and
Employment Scam
and how this
scam works?
What is Job and Employment Scam?
A job scam occurs when a scammer poses as an employer or recruiter, and offers attractive employment
opportunities which require that the job seeker pay money in advance.
How this Scam works?
You’re contacted by someone
claiming to be an employer
or an employer’s agent to say
they are considering you for
a position
They start telling you big
names in the industry and will
gain your focus by offering
attractive salaries
Post the conversation about
the salary, the fraudsters
guarantee you 110%
employment and then they
ask you to pay some amount
in order to register online
After you register, they start
telling you additional
charges for the procedure
and keeps prompting about
the interview schedule
You end up paying a huge
amount to the fake recruiter
with no interviews
scheduled and without
even realizing the situation
Scamwatch.gov

6. How to protect
yourself from this
scam?
You receive
an offer of a
job for which
you have not
applied
Be careful when you
receive an offer for a job
for which you have not
applied. This situation
itself is very fishy because
the fake recruiter gives you
job opportunities for the
big names, also, offers you
attractive pay
If you have been
asked to pay a large
amount of money to
receive a work
permit, you have
reason to be
cautious.
A job posting should
be fairly detailed
about the skills and
requirements needed
for a particular
position.
Open a new browser
and Google the
company name. Once
you get to the
company’s home page,
look for its career page
to compare the
recruiters proposal with
the original one
Scamwatch.gov

7. ATM Scam and how
this scam works?
What is ATM Scam?
The term ‘ATM scam’ can refer to an illegal transaction that is committed by using an ATM, including fraudulent
deposits or skimming card information.
How this scam works?
A camera is hidden under the
false panel above an ATM
keypad
As camera films the keypad,
the card is cloned by a device
fitted to the machine
Thief views film remotely on
another device to steal pin
number. Picture shows the
actual footage from the scam
Scamwatch.gov

8. You receive
an offer of a
job for which
you have not
applied
Before you leave the
machine, make sure you
have your card. As much
as 83 percent of all ATM
and debit fraud results
from stolen cards and
discarded receipts
bearing card/account
numbers.
You should never
write down the PIN
number – it should
be memorized.
It is a good thing to
change your ATM pin
at least every
quarter. This habit
will also help remind
you of changing the
PIN if you find a
suspicious activity
Minimize your time at the
ATM. The more time you
spend at the ATM, the
more vulnerable you are. If
you need to update your
records after a transaction,
you must do it at home or
office, but preferably not
while at the ATM
How to protect
yourself from this
scam?
Scamwatch.gov

9. Debit card & Credit
card scam and
how this
scam works?
When personal information is stolen from your debit, credit or store card, or the card itself is stolen; in order for
money to be taken from your account or used to buy items in your name.
What is Debit Card and Credit Card Scam?
How this Scam works?
Fraudsters use different
techniques to find out details
on your card. They may make
an excuse to see your card
when you are using it to buy
something or to withdraw
cash
Fraudsters may also use
techniques which involves
attaching a data skimming
device in the card reader slot
to copy information from the
magnetic strip when you
swipe the card
Alternatively, fraudsters may
use the information to create
a counterfeit card, or clone the
card by skimming the data
held on the chip or magnetic
strip.
Scamwatch.gov
Also, If you are used to
carrying out transactions on
your smartphone, public Wi-Fi
makes for a good hacking
opportunity for thieves to
steal your card details

10. Don’t accept the card
from the bank in case it
is damaged or the seal
is open
Sign new cards as
soon as they
arrive, and cut old
cards through the
magnetic strip and
the chip once
they’ve expired or
been cancelled
How to protect
yourself from this
scam?
Look after your cards-
keep them with you
everywhere you go.
Never hand over a card,
particularly if you are
paying using a contactless
card machine.
Sign new cards as
soon as they arrive,
and cut old cards
through the
magnetic strip and
the chip once
they’ve expired or
been cancelled
Your bank or the police
will never get in touch
to ask you for your PIN
as a ‘security check’. If
you get a call, text
message or voicemail
like this, do not give
away anything
Scamwatch.gov

11. Lottery Scam and
how this
scam works?
A lottery scam is one, which begins with an unexpected email notification, phone call, or mailing and explaining "You
have won, a large sum of money in a lottery”. The recipient of the message is usually told to keep the notice secret,
due to a mix-up in some of the names and numbers, and to contact a claims agent.
What is Lottery Scam?
How this Scam works?
You receive a letter, email or
text message saying you have
won a guaranteed prize in a
lottery or competition that
you did not enter
The sender claims they have
identified you as a winner by
randomly choosing your email
address. They may say the
offer is 'legal' or 'legitimate',
and has 'government
approval’
To claim your prize you are
asked to buy a ticket, pay a
fee or call a premium rate
phone number (usually
starting with 190).
You may be asked to provide
your bank account details, or
to send the fee to a PO box
number or via a money
transfer service.
The scammer will take your
payment and fail to deliver the
prize, or send you something
that falls short of the promised
prize.
Scamwatch.gov

12. Sign new cards as
soon as they
arrive, and cut old
cards through the
magnetic strip and
the chip once
they’ve expired or
been cancelled
If someone asks you to
pay money up-front in
order to receive a prize or
winnings, it’s almost
always a scam. Legitimate
lotteries do not require
you to pay a fee to collect
winnings
Read all the terms and
conditions of any
offer very carefully –
claims of free or very
cheap offers often
have hidden costs
Never send money or
give credit card, online
account details, or copies
of important personal
documents, to anyone
you do not know or trust
and never by email
Verify the identity of the
contact by calling the
relevant organization
directly – find them
through an independent
source such as a phone
book or online search.
Do not use the contact
details provided to you
How to protect
yourself from this
scam?
Scamwatch.gov

13. Overpayment
scam and how this
scam works?
What is Overpayment Scams?
Overpayment scams work by getting you to ‘refund’ a scammer who has sent you a cheque for extra/ too much
money for an item you are selling
How this scam works?
If you are into selling online
or classified ads, scammer
contacts you
He makes an offer to you
which would be
considerable
Post the offer, he/she sends
the cheque to you which is
higher than the amount
agreed upon
Before the cheque has been
cleared by your bank, the
scammer will contact you with
an apology for the
overpayment with fake excuses
The scammer would ask for
the refund of that extra
money sent by him to you.
Usually by Online transfer or
by some other fast mode of
payment
Before you discover that
their cheque has bounced,
your money is gone and you
are the victim of
Overpayment scam
Scamwatch.gov

14. How to protect
Yourself from this
scam?
Know who you are
dealing with,
independently confirm
your buyer's name,
street address, and
telephone number
Resist the pressure to
‘act now - if the
buyer's offer is good, it
would be good when
the cheque clears’
Do not accept any
cheque for more than
your selling price
Never agree to wire
back funds to a buyer.
A legitimate buyer will
not pressure you to do
so, and you have
limited recourse if
there is a problem
with a wire transfer
Scamwatch.gov

15. Phishing emails and
phony web pages
and how this
scam works? How this scam works?
You receive an email, text or a
phone call claiming to be from
a bank, telecommunications
provider or other business you
regularly deal with, asking you
to update or verify your details
The email or text message
does not address you by your
proper name, and may contain
typing errors and grammatical
mistakes.
The website address does not
look like the address you
usually use and is requesting
details, the legitimate site
does not normally ask for
You notice new icons on your
computer screen, or your
computer is not as fast as it
normally is
What are Phishing Emails and phony web pages Scam?
Phishing is the attempt to obtain sensitive information such as usernames, passwords, and credit card details
(and, indirectly, money), often for malicious reasons, by disguising as a trustworthy entity in an electronic
communication
Scamwatch.gov

16. How to protect
yourself from this
scam?
Sign new cards as
soon as they arrive,
and cut old cards
through the
magnetic strip and
the chip once
they’ve expired or
been cancelled
Do not click on any links
or open attachments
from emails claiming to
be from your bank or
another trusted
organization and asking
you to update or verify
your details – just press
delete
Do an internet search
using the names or
exact wording of the
email or message to
check for any
references to a scam –
many scams can be
identified this way
Look for the secure
symbol secure websites can
be identified by the use of
'https:' rather than 'http:'
at the start of the internet
address, or a closed padlock
or unbroken key icon at the
bottom right corner of your
browser window
Never provide your
personal, credit card
or online account
details if you receive a
call claiming to be
from your bank or any
other organization
Scamwatch.gov

17. Nigerian Scam/ 419
and how this
scam works?
What is Nigerian Scam/ 419 Scam?
These scams are often known as 'Nigerian 419' scams because the first wave of them came from Nigeria. The '419'
part of the name comes from the section of Nigeria’s Criminal Code which outlaws the practice. These scams now
come from anywhere in the world. The scammer will tell you an elaborate fake story about large amounts of
money 'trapped' in central banks during civil wars or coups, often in countries currently in the news
You receive a contact out-of-
the-blue asking you to 'help'
someone from another
country transfer money out of
their country (e.g. Nigeria,
Sierra Leone or Iraq)
How this Scam works?
The request includes a long
and often sad story about why
the money cannot be
transferred by the rightful
owner
You are offered a financial
reward for helping them
access their 'trapped' funds.
The amount of money to be
transferred and the payment
that the scammer promises to
you if you help, is usually very
large
Scammers may ask for your
bank account details to 'help
them transfer the money' and
use this information to later
steal your funds
The scammer may make up
new fees that require payment
before you can receive your
reward. They will keep asking
for more money as long as you
are willing to part with it.
Scamwatch.gov

18. Sign new cards as
soon as they
arrive, and cut old
cards through the
magnetic strip and
the chip once
they’ve expired or
been cancelled
How to protect
yourself from this
scam?
Avoid any arrangement
with a stranger that asks
for up-front payment via
money order, wire transfer,
international funds
transfer, pre-loaded card or
electronic currency. It is
rare to recover money sent
like this
Never send money or
give credit card details,
online account details or
copies of personal
documents to anyone
you don’t know or trust
and never by email
The writing in the
message is in very
polite but broken
English so be careful
when you deal with
such instances .Don't
fall prey to such
scams
Do not get carried
away with the request
that includes a long
and often sad story
about why the money
cannot be transferred
by the rightful owner.
Scamwatch.gov

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