Digital payments have increased significantly since the advent of the internet. The majority of customers on the planet are most likely online. More people are shopping online for items such as clothing, furniture, cosmetics, shoes, fast food, and other items previously purchased in-store.

We gathered some information while speaking with Raghib Khan, co-founder of Phonato Studios, a gaming and tech expert. He suggested that the risk of scamming activities has also become more common. With so many customers using digital payment and storing card details and other critical information online, scammers can’t help but take advantage, resulting in the rapid growth of digital payment scams, spam, and fraud.

Any fake or fraudulent transaction completed by a hacker or cybercriminal is considered digital payment fraud. As technology advances, so does cybercrime. The attacker steals money, private property, interest, or confidential information from the victim via the internet. These activities include unauthorized transactions, merchandise loss, false refunds, and so on.

Types of digital payment scams

It is best to be aware of these to stay safe and avoid scamming. Only by remaining alert and aware can you protect your information and avoid such frauds in the first place. Some of the most common digital payment frauds are listed below:

• Identify theft

As pointed out by Raghib Khan, this scam typically involves a cybercriminal stealing your personal information by spoofing your system, and the hacker then uses your information to conduct illegal online payment transactions. Because cybercriminals have all of the necessary information, they can circumvent fraud detection restrictions and firewalls.

• Phishing

You’ve probably come across several email subscriptions and websites urging you to sign up for updates and notifications. In most cases, these sources will request personal information, including your credit card information. Your information will be compromised and used to conduct fraudulent e-commerce transactions if the email is not from a trustworthy source.

• Merchant identity fraud

As highlighted by Raghib Khan, scammers often create a platform similar to the merchant account platform. The attacker then proceeds to make fraudulent payments and charge fees on stolen credit cards.

• Securities fraud

Speed, easy access, and anonymity all create an ideal environment for securities and stock market fraud. The most common is providing misleading or false information about a specific stock to increase its price. Investors accept this information as true and begin purchasing the stock, causing the price to rise. When they realize the information is false, the stock price falls, and the investors lose money.

There are some very effective rules that you should follow to avoid being cheated or scammed online. RNF Technologies’ co-founder Raghib Khan also recommends verifying every detail, not sharing sensitive information via phone, mail, or text, conducting a background check on your agents, and understanding the actual procedure for loan and insurance application and approval are just a few things to keep in mind. Only by remaining vigilant will you be able to protect yourself from these fraudsters and their scammy tactics. Make sure that you follow cyber hygiene best practices on the world wide web as well.