There are several ways that online frauds take place. While some of these are purely economical in nature and are done to dupe individuals off their savings and lead them into financial trouble, others simply manipulate information publicly available on the internet about a person, especially on social media.

Below given are a few forms of online frauds that take place in the virtual space regularly:

1.     
Phishing: A phishing attempt would be one where scammers
intend and attempt to lure users into fake websites, and eventually try to get
the consumer to disclose valuable information such as passwords, account
numbers, or general information related to transaction.

Also read: Six steps to secure your online transactions, bank details

Possible ways to avoid phishing attempts
would be to never give up organisational or personal information such as e-mail
address unless necessary. This might include both e-mails and messages on
social media websites. The latter is easier to identify, as most professional organisations
use verified, and often auto-generated e-mail addresses that follow a certain
pattern, unlike ambiguous phishing mails which often take the pretence of being
the authority or conducting a survey in order to avail said information.

2.     
Malwares and botnets: Malware attacks are more complex
and usually attack banks or similar financial institutions. The common way the
attacks are inititated are through corrupt or malicious software, known also as
‘malware’, being inserted into a particular system within the institution. The
malware then eventually is able to completely corrupt the machine and lead it
into a group of similarly compromised systems, together known as a ‘botnet’.

Also read: The rise and fall of Theranos founder Elizabeth Holmes

This allows the attackers to override
existing security protocols as well as harvesting sensitive data, credentials, and
even conduct transactions.

3.     
Identity theft: For individuals, identity theft
is often a big problem. This generally indicates at one’s personal information
being acquired by fraudsters, leading usually to applications for many kinds of
loans, such as personal loans, credit card loans or vehicle loans. In case of the
loans not being repaid, the person concerned would find themselves being marked
as a defaulter.

4.     
Tax scams: Normally taking place towards the end
of a financial year when taxpayers await their income tax refund, fake SMS or
e-mails are sent by fraudsters under the pretence of being associated with the
Income Tax Department. The notifications are sent mainly to acquire personal
information, such as Income Tax website login details and other bank account related
information, under the guise of crediting a taxpayer’s tax refund.

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5. Social media fraud: Not necessarily economical in nature, Facebook and other social media platforms are used by fraudsters regularly. Posing as a particular user, the scammers send messages to account-holders, luring them into prospects of interesting financial or social benefits, eventually acquiring credentials such as Login ID and passwords, changing them and using the accounts for various malpractices.