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Application fraud

It refers to a scam where someone opens an account in their name using fake or stolen ID proofs to withdraw cash or get financial benefits. Some such scams happen as first-party, where the person seeks loans or credit cards from the organisation using fake IDs and cut contact after gaining access to cash. 

In third-party scams, the person may use fabricated identities to get loans from financial organisations. They use a new identity each time they want to gain funds and have unusual credit histories. 

In many such cases, synthetic identity can be difficult to trace. At the same time, the criminals use various elements to appear more realistic, like they may use another valid customer's address and social security number. 

How To Protect Yourself?

  • Users should know the security risks and ways to protect crucial information. For example, they should not give private information to unidentified callers and do not share bank/official letters or documents with others. 

  • Always keep a check on your transactions and credit score. 

  • Keep track of suspicious emails or letters confirming new cards or loans you did not apply for. 

  • Also, you should know the contact details when you pay for any subscription. 

  • Install multiple-step authentications to protect accounts. Banks are incorporating techniques like AI and ML to automate authentication where multiple data points will cross-check account information and determine the risk factors.

Date Published: Sep 11, 2023

Types of fraud

A-Z of fraud

To help understand which fraud you've been affected by, we've categorised them into an alphabetical list.

What is fraud and cyber crime?

Cybercrimes can be of two types. First, it can be cyber dependent, where the fraudsters use online devices to convince the victim to accept their offers.

Advance fee fraud

If you are trying to get a loan for a house or a car, they ask to meet the provider to get the financing arrangement and pay the finder's fee in advance.

Corporate fraud

Corporate frauds can be complicated, committed either by the firm or an individual. Nevertheless, it mostly involves cheating where the employee or the firm.

Individual fraud

There are many types of individual frauds related to advance fees, investments, insurance brokers, bogus tradespeople, Ponzi schemes, pension liberation.

Online fraud

Hence the number of cases of online fraud is increasing each year, and most such cases include – account takeover, direct frauds, or scams related domain names.

Identity fraud and identity theft

The criminal uses the stolen identity of another person living or deceased to conduct unlawful activities like obtaining goods or services in another's name.

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