SBI cautions Customers about a New Fraud; Advised not to trust calls from CBI and IT Department without Verifying

The State Bank of India (SBI) recently warned customers about a new scam module in which fraudsters posing as a Officials of the Central Bureau of Investigation (CBI) or Income Tax Department may intimidate you and levy large fines in the name of a fabricated legal case.

“Dear SBI Customer, Fraudsters may pretend as CBI or IT Department officials and threaten you with legal action or severe fines in order to extort money. Beware of such frauds,” the State Bank of India (SBI) warned its customers.

How the Fraud Works and What Precautions you should take?

Initiation of the Fake Call

In this sort of fraud, the imposter first identifies the unsuspecting customer and calls him or her. This generally happens when using a chat app’s video calling feature. The bait, which persuades the consumer that the concerned authority has some significant information about him, is the most important aspect of the fraud. This bait can be anything that can be utilized to trap the customer, such as their KYC number or address. For example, the fraudster may acquire information about you from the public domain and present it to you in such a way that you become convinced.

What if a stranger informed you that the property you had sold was subject to income tax that you did not pay? He or she may now obtain this information from the property websites where you listed it, the property broker’s website, or even a data breach at the property registrar’s office.

Initiation of the Fear

Once the customer is convinced that the imposter is a legitimate agent of the CBI, income tax, or other official departments, the fraudster tells him a story. He may claim that you have evaded income tax or missed an important judicial process, and so you may be detained. Most individuals fear when they hear the words jail, arrest, or legal process. The fraudster takes advantage of people’s dread and panic.

In the midst of the panic, the fraudster “stage manages” the event by scrutinizing various documents, and in rare circumstances, he even replicates an actual police questioning. The customer is then prompted to provide further information such as Aadhaar proof, bank account information, etc.

Providing an Escape Route from the Created Problem

The staged acting that the fraudster so skillfully performed may persuade some individuals. Once the customer is convinced that the inquiry procedure will take time (days or months) and that he or she will only be considered innocent after comprehensive verification, the scammers provide an exit strategy. The fraudster’s narrative is that if you pay him or her a bribe, all of your legal, tax, and other problems would be handled. The customer is instructed to move funds to other bank accounts while the investigation is ongoing, with the promise that the funds will be returned after the investigation is over.

According to an ACFCS officials, this type of scam, often known as “phishing” or “social engineering,” involves fraudsters posing as legitimate authority in order to intimidate victims into transfering money or personal information.

“Every year, the Federal Trade Commission (FTC) in the United States says that millions of dollars are lost due to fraud. Various studies show that billions of dollars are lost each year due to various sorts of financial fraud, and the problem is worsening as technology advances and more individuals undertake transactions online,” she says.

What Precautions should you take for this kind of fraud?

The Official mentiioned above shares some essential tips which you may follow for safeguarding yourself from this fraud:

Verify the Source First: It is always essential to verify the identity of the caller or sender first. Official organisations typically do not ask for sensitive information over the phone or via SMS or video call.

Do not Share Personal Information: It is advised to never share personal or financial information with someone who contacts you unexpectedly.

Be Sceptical of Threats: Be more aware or little suspicious if someone contacted you and threatens you with legal action or fines. Legal organisations normally communicate through official channels like mail or notice and provide specified time to respond.

Report Suspicious Activity: Report any suspicious messages you get to your bank and local authorities.

Use Security Features in your Mobile phone and Legal Accounts: Secure your mobile phone by enabling two-factor authentication on mobile phone and your bank accounts and use strong, unique passwords for different services.