SBI warns of new fraud involving fake CBI, IT officials
What's the story
The State Bank of India (SBI) has warned its customers about a new kind of fraud. In this scam, fraudsters impersonate officials of the Central Bureau of Investigation (CBI) or the Income Tax Department. The bank warned that these impostors may threaten with legal action or heavy fines to extort money from unsuspecting individuals.
Scam strategy
Modus operandi of the fraudsters
The fraud usually starts with the scammer identifying a potential victim and reaching out, mostly through video calls on messaging apps like WhatsApp. They use bait, like personal information or KYC details, to convince the person that they have critical information about them. This can be anything from property transactions to income tax details, which may have been sourced from public sources or data leaks.
Fear factor
Scammers exploit fear and panic
Once the victim is convinced of the scammer's authenticity, they are told a fabricated story about tax evasion or legal issues that could lead to arrest. This creates a state of panic, which the fraudster exploits to their advantage. In some cases, they may even stage an interrogation process to further intimidate the victim into sharing additional information like Aadhaar details and bank account specifics.
Escape ploy
Fraudsters offer escape route for money
The final act of the scam is where the fraudster offers an escape route from the alleged legal troubles. They convince the victim that all their issues can be resolved with a bribe, asking them to transfer money to different bank accounts as part of an ongoing investigation. The scammers assure victims that these funds would be returned once the investigation is completed.
Global concern
Phishing and impersonation frauds are a global issue
Sheetal R Bhardwaj, an executive member of the Association of Certified Financial Crime Specialists (ACFCS), has categorized this kind of scam as "phishing" or "social engineering." She stressed that such scams are not merely an Indian phenomenon but a major global issue. The Federal Trade Commission (FTC) in the US reports millions of dollars lost to fraud every year, underscoring the growing problem as technology evolves and online transactions surge.
Safety measures
Precautionary measures against such frauds
Bhardwaj has also suggested a few precautionary measures to protect yourself from such scams. These include verifying the identity of the caller/sender, not sharing personal/financial information with unexpected contacts, being skeptical of threats related to legal action/fines, and reporting any suspicious activity to your bank and local authorities. She also recommends enabling two-factor authentication on bank accounts and using strong, unique passwords for different services.