The convenience of digital transactions makes our daily lives easier. Through online services, anyone can open a bank account, apply for loans, shop, or even manage assets. However, behind this convenience lies a risk that often goes unnoticed: digital fraud cases.
Fraud takes many forms. But when technology becomes the tool or the target, it is known as digital fraud. In the context of financial institutions, digital fraud can have serious consequences—not only for individuals but also for company reputation and stability.
Here are the 10 most common digital fraud cases that affect financial service customers.
1. Phishing via Email or SMS
One of the most common online scams is phishing. Fraudsters pose as official institutions such as banks or marketplaces and send fake links via email or SMS.
Example: A customer receives an email resembling an official bank address requesting account verification. The victim enters their PIN and OTP on a fake page. Once exposed, the fraudster drains the account balance.
2. Account Takeover (ATO)
Account takeover often follows phishing. It occurs when fraudsters gain full access to victims’ digital accounts through stolen OTPs or SIM cards, then log into e-wallets or mobile banking.
Example: Victims receive a message from scammers posing as bank staff or government officials, instructing them to download a file and enter login data—giving criminals full access.
3. Fake Transfer Receipts
Fraudsters edit transfer receipts to trick online sellers into believing payments were made. Sellers, convinced by fake proof, send the goods—only to realize no funds ever arrived.
4. SIM Swap Fraud
This scam is increasingly common. Fraudsters transfer a victim’s phone number onto a new SIM card they control. Once done, they can intercept OTPs and access financial accounts, taking over everything linked to that number.
5. Social Engineering
This involves manipulating victims into willingly revealing sensitive data like OTPs, PINs, or passwords.
Example: A fraudster calls, pretending to be a digital wallet customer service agent, claiming there’s a problem with the account. They trick the victim into sharing an OTP, which is then used to hack the account.
6. Deepfake and Impersonation
With AI technology, scammers can create fake videos or voices that resemble real people, such as managers or officials.
Example: An employee once received a video call from their “boss” asking for an urgent money transfer—later revealed to be a deepfake.
7. QR Code Scam (QR Scam)
Fraudsters replace or spread fake QR codes in public places. When scanned, these codes redirect funds or download malware.
Example: A victim pays for parking via a QR code in a public area, but the code has been tampered with to send money directly to the scammer.
8. Fake Loan and Investment Offers
Fraudsters lure victims with promises of quick loans or high-return investments via fake websites or apps.
Example: A victim applies for a fast loan, uploads personal data, and pays an “admin fee.” The app disappears, and no loan is ever disbursed.
9. Marketplace Seller Fraud
Fraudulent sellers provide fake receipts or deliver counterfeit goods.
Example: A buyer orders a smartphone, but instead receives a random item. Once payment is made, the seller disappears.
10. Malware that Steals Data
Malware is hidden in files or apps downloaded from unofficial sources. Once installed, it steals sensitive data.
Example: A victim downloads a “promo” file from a fake email. It contains a keylogger that records every keystroke, sending data directly to the scammer.
How to Avoid Digital Fraud Cases
To protect yourself from becoming a victim of online fraud, here are some essential steps:
1. Never Share OTPs, PINs, or Passwords
These are the keys to your digital accounts. Banks, digital wallets, or financial institutions will never ask for them via phone, SMS, or email. If someone asks, it’s a scam.
2. Always Verify Website and Email Addresses
Fraudsters often mimic official websites and emails. Look out for small inconsistencies—misspelled words, odd domains, or unusual designs. Type official URLs manually or use verified apps.
3. Avoid Filling Forms from Unclear Sources
Many scams happen because victims unknowingly submit data on fake websites or apps. Only share data on official, secure platforms such as Play Store or App Store apps.
4. Don’t Download Random Files or Apps
Free apps or files from unofficial sites often hide malware. Once installed, all activities on your phone could be monitored.
5. Protect Your Phone Number and Personal Data
Leaked phone numbers enable SIM swap fraud. Likewise, details like national ID or birthdate can be exploited for account recovery. Use different passwords for different accounts, and don’t overshare personal data online.
6. Switch from Passwords to Biometric Authentication
Traditional login methods like passwords and OTPs are vulnerable to theft. Many digital fraud cases like phishing and SIM swap succeed because victims hand over login details.
Biometric authentication offers stronger protection. It can’t be guessed, shared, or stolen like a password.
As a digital identity platform, VIDA recommends switching to biometric login. For financial institutions, adopting biometrics is crucial to protect users against fraud schemes that exploit weak credentials.
Don’t wait until you become a victim of digital fraud. Prevention is always better than cure. The digital world makes life easier, but only if used safely and wisely. By being alert and adopting secure login methods like biometrics, you can reduce the risk of falling into these scams.
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