Cyber Criminals Impersonating Banks to Steal Money: How the Scam Works and Tips to Stay Safe

Cyber fraud is becoming a serious threat across India, with scammers posing as bank officials, RBI representatives, or even government agencies to trick people into sharing sensitive details. Recently, a major case came to light in Uttarakhand, where fraudsters attempted to extort ₹1.5 crore from a retired Vice-Chancellor. Fortunately, the cyber cell intervened in time, preventing a major loss.

These scams highlight how criminals are constantly coming up with new methods—fake transaction screenshots, UPI refund tricks, and even professional call-center-style setups—to cheat unsuspecting individuals. If you have ever received a call claiming to be from your bank regarding “suspicious activity” or “refund verification,” it’s time to be extra alert.

How Do Cyber Criminals Operate?

Cyber fraud through phone calls, also known as “vishing” (voice phishing), has become increasingly common. Here’s how criminals typically carry out the scam:

1. Pretending to Be Banks or Government Agencies

Fraudsters call victims claiming to be from their bank, the Reserve Bank of India, the police, or customer care. They create panic by saying that unauthorized transactions have been made from your account and immediate action is required. Under pressure, victims are tricked into sharing OTPs, debit card PINs, or UPI credentials. In some cases, criminals convince users to install remote access apps, which allow them to control the victim’s phone and siphon money directly.

2. Fake Transaction Screenshots

Scammers often send fabricated bank transaction messages or screenshots to victims. For example, they may claim that a large payment has been made from your account and then ask for urgent action to “stop the transaction.” In reality, the screenshot is fake, but the panic it causes often makes people fall into the trap.

3. UPI Refund Trick

One of the most common tricks involves small test transactions. Criminals may deliberately send a small amount of money and then claim that they accidentally transferred a much larger sum. They then ask you to “refund” the excess amount. During this process, they manipulate victims into sharing sensitive details like OTPs or authorizing fraudulent UPI requests.

4. Call-Center-Style Operations

Investigations have revealed that many fraud gangs operate like professional call centers. They have agents, scripts, and automated calling systems to make their scams appear legitimate. Once money is stolen, it is quickly moved through multiple accounts (known as money multi-hopping) to make recovery more difficult. Several police raids across India have exposed these networks and led to arrests.

Safety Tips to Protect Yourself

With cybercrime cases rising, awareness is the strongest defense. Here are some essential safety guidelines:

• Never share OTPs, UPI PINs, or passwords over the phone. Banks and government agencies never ask for such details on calls.

• Avoid installing remote access apps at the request of a caller, no matter how genuine they sound. If in doubt, visit your bank branch directly.

• Do not trust caller IDs. Fraudsters can spoof numbers to make it look like the call is coming from an official source. If you receive a suspicious call, hang up and call your bank’s official number from their website.

• Report suspicious activity immediately. If you notice an unauthorized transaction, contact your bank’s official customer care or use internet banking to block your account. The faster you act, the higher the chances of recovering your money.

• Stay updated on the latest scams. Cybercriminals constantly change tactics, so being aware of new fraud methods helps you recognize red flags early.

Conclusion

Cyber fraud is no longer limited to phishing emails; phone-based scams have become just as dangerous. Criminals use fear and urgency to manipulate victims into handing over their hard-earned money. The case of the retired Vice-Chancellor in Uttarakhand is just one of many examples showing how even educated individuals can be targeted.

The golden rule is simple: be cautious, verify every call, and never share confidential details. If something feels suspicious, it probably is. Staying vigilant can save you from becoming the next victim of these increasingly sophisticated cyber scams.