How to Avoid FD Fraud and Secure Your Investment

While booking Fixed Deposits (FDs) has become easier due to digitalisation, fraud has become more common. Falling prey to a fixed deposit fraud can lead to the loss of your hard-earned savings.

 

To avoid such circumstances, verify all information about FDs on the official websites of banks and NBFCs regulated by the RBI.

Technological advancements have made lives easy as you can now perform any transaction from anywhere. However, this convenience has led to increased cases of digital fraud, with fixed deposit frauds being one of them. 

 

A fixed deposit fraud is any fraudulent activity affecting your fixed deposit investment. Though state cyber crime cells are committed to stopping such frauds, you should be wary of fraudulent fixed deposit options.

 

Stay one step ahead to avoid losing your savings or letting fraudsters get hold of your personal or sensitive information. By being cautious while doing transactions or starting an FD, you can avoid being a victim of any fixed deposit fraud. 

By understanding the risks and taking proactive steps, you can reduce the chances of falling prey to fraudulent schemes. Given below are some of the ways how you can avoid this type of fraud and keep your money safe:

• Use the Right Internet Service

Digital fraudsters can steal and misuse your information if the transactions don’t occur through a secure network. Public networks often have weak security, which makes it easy for scammers to hack into. 

 

Always use a secure network if you deposit your money or get FD interest income through net banking. 

• Be Cautious While Using Your Card

Never disclose details about your credit/debit card with anyone while depositing your money in a fixed deposit. You may receive a call from an unknown number claiming to be a representative of a reputed company. They may offer assistance with depositing your money in a fixed deposit.  

 

In such a scenario, ensure you get the caller's complete information and do not share details about your card like CVV or OTP. In case of any suspicious activity, talk to your state’s Cyber Cell immediately.

• Keep Changing Passwords

For digital fraudsters, hacking passwords is an easy task. To prevent this, use strong passwords for all your financial accounts. Combine letters, symbols, and special characters and do not use your name or birth date. 

 

Do not keep the same password for a long time, and keep changing it to avoid falling prey to hacking. 

 

Here are some other dos and don’ts you need to follow while applying for an FD online:

 

Dos

• Download apps only from legitimate sources like the Google Play Store and verify URLs.

• Fill in the nominee section with the correct details and keep it updated.

• Meet representatives in person at the bank to ensure you are speaking with a legitimate person.

• Maintain an up-to-date correspondence address and mobile number. The bank will send important messages about FD liquidations through these channels.

 

Don’ts

• Never issue a blank cheque for fixed deposits; always specify the bank's name and include "account payee" markings.

• Beware of unknown callers impersonating well-known companies offering fixed deposit assistance. Banks do not conduct such transactions over the phone.

• Do not give your smartphone to third parties for financial transactions or KYC requests.

• Avoid sharing your banking or credit card details with third-party representatives. Their identities cannot be verified. Whenever possible, conduct transactions in person.

• Do not pay anyone in advance for fixed deposit bookings.

• Never share your OTP with anyone, even if they claim to be a bank representative; legitimate banks will not ask for it for KYC changes or transactions.

Online fixed deposits and digital transactions provide convenience. However, they also heighten your risk of fraud. Cases like fixed deposit frauds are likely to increase in the future. Being careful and alert is the most important solution to avoid them.

 

If you feel you have been a victim of an FD fraud, contact the concerned bank and legal authorities immediately. Early reporting improves your chances of recovery.