Online fraud – Types of online scams and ways to prevent them

Know the different types of online card fraud, and how you can prevent the misuse of your card.
Online fraud – Types of online scams and ways to prevent
3 mins

Online fraud refers to fraudulent activities such as identity theft and financial fraud that are committed by using the internet.

What is online fraud in cyber security?

Online fraud in cyber security includes online scams, spam, identity theft, fraud buying products online from your account without your knowledge, identity spoofing, scam pop-up alerts, chain letter scams, etc.

Get coverage up to Rs. 2 lakh in case of a fraudulent transaction done using your lost credit/debit card with Wallet Care from Bajaj Finance Insurance Mall.

Types of online frauds

Given below are the different types of online fraud:

  • Assured approval for a credit card or loan: Email scams that tell you to pay a fee and that assures to give you a loan or credit card.

  • UPI fraud: The scammer sends money to the victim's account through a UPI app and contacts the victim requesting for a payback. If the victim repays through the UPI app, malware infects their device, giving the fraudster access to their full data, including bank and KYC details. This is called UPI fraud.

  • Employment opportunities: They promise to give you an employment offer letter if you agree to pay a certain fee.

  • Lottery scams: The email will say that you have won a lottery and you have to pay a processing fee.

  • Phishing: The meaning of phishing is to get access to your confidential details through email, SMS, or calls.

  • Email scams: You may receive emails, wherein you have been asked to click on links for an easy loan, vacation, or other benefits. These are spam emails and clicking on any such link can put your device’s security at risk.

  • Identity theft: In case of loss of identity cards, scammers can misuse your information for illegal activities.

  • Pan card fraud: Getting access to your PAN card number is easy and fraudsters can commit identity theft with these PAN details. They can take loans, do unauthorised bookings and other illegal activities with your personal details. This is known as PAN card fraud.

Some common fraud types

There are several types of fraud, but some of the most common ones include:

  • Online shopping fraud: This type of fraud occurs when a fraudster uses a stolen credit or debit card to purchase goods or services online.

  • Identity theft: Identity theft involves stealing someone's personal information for fraudulent purposes, such as obtaining credit or making illegal purchases.

  • Investment fraud: Investment fraud involves deceiving investors by misrepresenting investment opportunities to persuade them to invest.

  • Fraud through schemes: Schemes involve using funds from new investors to pay off earlier investors, promising unrealistic high returns.

  • Insurance fraud: Insurance fraud happens when individuals file false claims or manipulate insurance claims to receive money.

How does online fraud happen?

Given below are the ways in which online fraud may happen:

  • It is easy to get access to credit card details by hacking or online criminal organisations.
  • One who steals credit card details usually sells confidential information to third parties. This leads to the rapid spreading of information.
  • The law enforcement for cybercrimes is not very strict. There is not enough evidence for prosecuting cybercriminals. Cybercrimes usually involve several states and countries. Hence, jurisdictional issues can come into the picture. This delays the prosecution.

How to protect yourself from internet scams

Internet scams are a growing problem in today's digital world, and it's essential to protect yourself from falling victim to these fraudulent activities. Here are some tips to keep in mind:

  • Be cautious when receiving unsolicited emails or messages.
  • Ignore messages that demand immediate action or offer rewards that seem too good to be true.
  • Always verify the authenticity of the website and the seller.
  • Use strong passwords and change them regularly.
  • Install antivirus software and keep it updated.
  • Use two-factor authentication when available.
  • Never give your personal information to unsolicited callers.

Few tips to avoid online fraud

Here are some tips to help avoid online fraud:

  • Verify the authenticity of the website and the seller.
  • Use secure payment methods and avoid clicking on unknown links or pop-ups.
  • Use strong passwords and change them frequently.
  • Be cautious when receiving unsolicited emails or calls.
  • Keep your computer and mobile device updated with the latest security software.
  • Use two-factor authentication when available.
  • Check your bank and credit card statements frequently for suspicious activity.

Protection against cyber crimes

You can safeguard yourself against cyber crimes by following a set of preventive measures:

  • Update your devices timely and ensure the installation of an antivirus program in your system.
  • Set strong passwords so that hackers cannot easily access your devices or accounts.
  • Look out for phishing scams. Do not click on any link received through email or text messages. This can be a trap and your confidential information can be at risk.
  • Secure your internet connection and be cautious of the information sent over it.
  • Protect all your personal information with strong passwords.
  • If shopping online, then make payments only on secure platforms. Scam websites can misuse your payment information.

To protect yourself from online fraud and scams get yourself protected with a card protection plan. Bajaj Finance offers Wallet Care plan for your safety. You can buy this plan and get financial security against card fraud. Also, avail benefits like credit and debit card blocking, PAN card replacement, and emergency travel assistance.

Frequently asked questions

How do online frauds work?

Internet fraud is the practice of defrauding or exploiting victims by using online tools and services with internet access. Online fraud refers to a broad category of cybercrime that occurs online or via email, including crimes like identity theft, phishing, and other hacking attempts meant to defraud victims of their money.

How can I secure myself from online fraud?

You can follow a few simple steps to prevent yourself against online fraud:
1. Set strong passwords.
2. Keep devices and software up to date.
3. Do not click on links from any unknown source.
4. Do not share your PIN or payment card CVV with anyone.
5. Install antivirus in your devices.

What is a card protection plan?

A card protection plan serves as an insurance policy for credit, debit, cards, and membership cards in the event of card theft, loss, or fraud.

What are the common types of online fraud?

Given below are the common types of online fraud:
1. Phishing
2. Spyware
3. Internet banking fraud
4. Identity fraud

What is the CPP Wallet Care plan and how can it be helpful in case of credit card fraud?

The CPP Wallet Care plan covers online card fraud, phishing, tele-phishing, and PIN-based fraud. This is useful for credit card fraud protection as it offers a single-call card-blocking facility. It ensures that in case your payment cards fall into incorrect hands, then blocking the credit card becomes easy.

What is ATM Fraud?

ATM fraud involves the unauthorised use of a person's debit card or Personal Identification Number (PIN). It may also entail hacking into accounts to enable transactions without the owner's knowledge or approval.

Why do online scams happen?

Online scams happen because criminals seek financial gain through deceitful means. Online fraudsters typically use a variety of tactics to trick people into providing them with personal or financial information. They capitalise on people's trust and manipulate their fears and emotions, leading them to hand over cash, personally identifiable information, and access to their bank accounts. Additionally, the rise of e-commerce and online financial transactions has created more opportunities for fraudsters to target individuals and businesses.

Show More Show Less


Insurance is the subject matter of solicitation. Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Future Generali Life Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Limited, Niva Bupa Health Insurance Company Limited , Aditya Birla Health Insurance Company Limited and ManipalCigna Health Insurance Company Limited under the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. Visitors are hereby informed that their information submitted on the website may be shared with insurers. BFL is also a distributor of other third party products from Assistance Services providers such as CPP Assistance Services Pvt Ltd, etc. All product information such as premium, benefits, exclusions, sum insured, value added services, etc. are authentic and solely based on the information received from the respective insurance company or the respective value added service provider or Assistance company.
Note – While we have made all efforts and taken utmost care in gathering precise information about the products, features, benefits, etc. However, BFL cannot be held liable for any direct or indirect damage/loss. We request our customers to conduct their research about these products and refer to the respective product’s sales brochures before concluding their sale.