The State Bank of India has recently warned its customers about a new series of scams where imposters posing as CBI or Income Tax Department officials threaten people with a made up supposed legal action in order to extort money.
It said, “Dear SBI Customer, Fraudsters may pose as CBI or IT Dept officials and may threaten legal action or heavy fines to extort money from you. Beware of such frauds”.
How the CBI, I-T imposter scam operates:
The first step to prevent falling prey to such frauds is to understand the modus operandi of scamsters. Vikram Babbar, Partner, EY Forensic & Integrity Services told ET explains how the fraud works:
- Initiating the contact: The whole process begins with an imposter identifying any exploitable customer and contacting him/her through voice or video call, usually over messenger apps. The key element of the fraud is the bait that tricks the victim into believing the official has some critical information about them. This bait may include personal information like KYC number, address or any other information like assets etc.
- Convincing the victim: The imposter then uses this information in such a way that the victim gets easily convinced. For example telling them about any property they bought and not paying the required tax for it. The fraudster may obtain this information from property websites where you have listed details, from a property broker’s website, or even from a data breach at the property registrar’s office.
- Narrating a fake story: Once the victim is convinced that the imposter is a genuine CBI or income tax official, the fraudster fabricates a story, claiming that the victim has evaded taxes or missed an important legal process, and therefore faces the possibility of arrest.
- Falling into the trap: Hearing words like “jail,” “arrest,” and “legal proceedings” naturally triggers a sense of panic in people. The fraudster exploits this fear and panic to manipulate the victim into compliance.
- Staging fake evidence: Meanwhile, the fraudster further “stages” the situation by scrutinizing fake documents and, in some cases, even simulating a police interrogation, pressurizing the victim into providing additional personal information, such as Aadhaar details, bank account numbers, and other sensitive data. This is then used by the scammers to easily access the victim’s bank account and other details.
- Last nail in the coffin: The fraudster sets a well-planned trap that deceives numerous victims and once the victim believes the investigation will be lengthy, the fraudsters offer an escape route to the victim claiming that their innocence can only be confirmed after thorough verification.
- The victim is assured that the ‘official’ will take care of all legal, tax, and other issues, provided that the victim pays them a bribe and directs them to transfer money to multiple bank accounts throughout the investigation, with the promise that the funds will be refunded once the inquiry is completed.
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How to avoid these frauds
Shiksha Goel, who is an IPS, DGP CID & Women Safety Wing, director Telangana Cyber Security Bureau & Telangana FSL stated that no law enforcement agency or government body contacts consumers to conduct an investigation online, nor do they ask individuals to resolve legal matters through a video call.
“In these cases the common narrative is to induce the fear of legal action on the victim for a made up incident and then extort money from them.”
In case of receiving these kinds of threats, the victims must not be alarmed, instead ask the other person on the call to meet you at the nearest police station or government office.
Social engineering
ET quoted Sheetal R Bhardwaj, executive member of Association of Certified Financial Crime Specialists (ACFCS) as saying, “This type of scam is commonly known as “phishing” or “social engineering.
Bhardwaj added that these scams have now become a major concern globally rather than India.
“The Federal Trade Commission (FTC) in the United States reports millions of dollars lost to fraud each year. Various studies indicate that billions of dollars are lost annually worldwide due to different types of financial fraud, and the problem is escalating as technology evolves and more people conduct transactions online,” she said.
“If it’s a genuine call then the other person will agree to meet you at the police station or government office.”
Another tip she suggested was for consumers to disconnect the call and then dial the same number to return the call.
“This is because, in our experience, we have seen these impostors use voice over internet protocol (VoIP) or other internet-based calling software, which typically doesn’t allow incoming calls.”
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Steps to prevent online frauds
Bharadwaj also shared some essential tips to safeguard and avoid this fraud
- Always authenticate the identity of the caller or sender. Legitimate organizations generally do not request sensitive information through phone calls, SMS, or video calls.
- Be cautious if someone threatens you with legal action or fines as genuine organizations typically communicate through official channels, allowing sufficient time for the victim to respond.
- Never share personal or financial information with anyone who contacts you unexpectedly.
- Report any suspicious messages to your bank and local law enforcement authorities.
- Enable security features such as two-factor authentication on your bank accounts and use strong, unique passwords for each service.
