Online Transactions: How To Keep Your Money Insured?

What are the classic signs of online fraud, how can you avert it and why invest in insurance for guaranteed returns?

Why multi-factor authentication is important to keep scammers from breaching your personal and confidential data.

Courtesy - iStock

From stolen payments, online money mules, fake recruiters, and offers to cyber-criminal rings – fraud is the biggest concern during online transactions. What are the classic tell-tale signs of online fraud, and how can you avert them?

The first step in preventing online fraud is being very careful in how you share your personal contact information – from e-commerce portals to local vendors. This helps you build a firewall that limits breaches of your privacy.

Multi-Factor Authentication (MFA) adds a second layer of security verification when logging in to your online or mobile banking account. First, you enter your login name and password and then you have to pass a second security test. It can be an OTP sent to your registered mobile number, an automated phone call, or biometric verification. This makes it difficult for a hacker or identity thief to unlock your account, even if they have your online or mobile banking password.

Most online verified services will immediately communicate with their customers about any activity in their accounts. It includes everything from alerting you about failed login attempts to password changes. They will also inform you about any payments made from your account, which can be supremely beneficial if you have fallen prey to fraudulent activity. It then makes it easier to report the instance and re-claim your money.

Cryptocurrency or online gaming holds the attraction of lucrative and fast returns for Gen Z. But, these are extremely volatile and risky investment categories without guaranteed returns. Meanwhile, HDFC Life Sanchay Plus is an insurance policy that guarantees returns for you and your family even during unforeseen circumstances.

The first step is to block your debit/credit card and change the passwords of your online accounts. You must immediately notify your bank or the concerned financial lending service and then proceed to report the online fraudulent activity to the National Cyber Crime Reporting Portal. This will help you recover your money within 3-7 working days after due diligence, according to the RBI.

There has been a sharp increase in online transactions with credit and debit cards and as more and more fintech organisations offer lucrative Buy Now Pay Later (BNPL) schemes. 

Transactions have become faster, easier, and more accessible with robust digital payment systems in place. But this has also increased phishing, hacking, fraudulent activities, and cybercrime. 

According to the RBI, the amount involved in such frauds has declined from Rs. 185 crore in 2019-20 to Rs. 128 crore in 2021-22. The RBI has also started taking strict measures to address online scams by encouraging consumers and victims to immediately alert and report such notorious activities. 

But the best way to keep your money safe in the online world is by building financial discipline, keeping track of your payments, and investing your money into shrewd, verified products. 

A common mistake that a newbie tends to make is to invest in “hot money”. It essentially means that they tend to follow the herd mentality and put their money into the trend of the day without understanding the pros and cons of such investments. Cryptocurrencies, NFTs, and stocks are some such investment categories.

But insurance is your best investment choice if you are only ever starting your journey into financial planning. The best part about an insurance policy is that it gives you tax benefits and guaranteed returns even during unforeseeable circumstances. 

The HDFC Life Sanchay Plus is a savings insurance plan that offers guaranteed returns for you and your family. It includes the following features:

• Guaranteed benefits – Rest assured of the returns

• Life Long Income option, which means guaranteed income till age 99 years

• Long Term Income option, which means guaranteed income for a fixed term of 25 to 30 years.

• Life Long and Long Term Income options return the total premiums paid at the end of the payout period

• Enhanced benefit for policies with Annual Premiums more than INR 150,000

• You can also select Optional on payment of additional premium

Visit here to know more about eligibility and how to get your HDFC Life Sanchay Plus policy.