As the Coronavirus spreads across developing countries, financial scams are on the rise

Internet fraudsters have infected vulnerable people in the Philippines, Peru, India, Kenya, South Africa, and several other developing countries who are still dealing with the health effects of the coronavirus pandemic. These scams have the potential to erode confidence in emerging technology, which is proving to be critical in keeping people safe.

Confidence in digital finance systems, which have been helpful in promoting financial inclusion programs, might be harmed only as they have proved to be a successful way of getting payments to vulnerable people effectively and efficiently.

Virus-related scams

• During the lockdown in India, a phishing attack is offering housebound people a free Netflix subscription if they click on a survey connection and forward the message to 10 WhatsApp users.
• Emails purporting to be from the World Health Organization, the United Nations, and the Centers for Disease Control and Prevention have also been sent with mysterious connections.
• Scammers have been going door to door in South Africa, claiming to have "recalled" banknotes and coins that they claim are infected with the coronavirus and offering vouchers for "new" cash that is never shipped.
• In India, phony emergency money deals for necessities have been registered.
• According to INTERPOL, suspects have been contacting victims posing as clinic or hospital employees, claiming that a family has contracted the virus and demanding payment for medical attention. Fake medical devices, such as masks, vaccines, and diagnostic kits, are being sold to people looking for protection.

There have also been reports that the coronavirus is linked to emerging technology exposure (such as 5G, which can be used to deliver money mobiles services). Authorities should take steps to help defend customers as a result of this. Consumer enforcement authorities, regulators, and providers should all alert customers of the dangers. Providers should ensure that appropriate customer complaint processes are in place, and law enforcement should organize concrete action across borders as well as throughout the region.

Possible Actions

INTERPOL has aided national authorities in the blocking of some of the transfers, helping with about 30 COVID-19-related fraud scam incidents. A big portion of the transfers could not be blocked due to the blockchain technology that was used during the process. This means that a lot of people were scammed by the brokerage companies that were trying to make them believe that during the economic crisis and job shortage due to the covid, forex or crypto was the best option to generate financial profits. The thing that people kept forgetting was to check out the reviews about the brokerage company they were contacting with, reviews that had detailed information about the important characteristics of the company, for example, such as Milton Prime review that provides us with thorough information about the company and its technical tools. Perhaps a bright side to the current situation will be to encourage such cross-border consumer security activities where reciprocal arrangements between countries do not occur.

It is unconscionable to prey on vulnerable people in developed nations during a period of crisis. A multi-pronged initiative is required to prevent more patients from becoming victims at a time when many are suffering financially as a result of being forced to stay at home to fight the disease. Customers must be protected by a joint campaign between the public and private sectors, including outreach programs and high-profile law enforcement actions. In the short term, education is critical, and policymakers are frequently in the right position to lead. The South African Banking Risk Information Centre (Sabric), for example, has been advising bank customers of offenders using the virus to conduct phishing attacks.

Similarly, the Philippines Department of Information and Communications Technology has warned Filipinos to be cautious when using the internet and to be careful of COVID-19 websites or apps that ask for personal information. Governments must continue to recognize consumer security risks, beginning by contacting banks, microfinance institutions, fintech, NGOs, and other organizations to learn about what they are seeing in their markets. Then efforts should be taken to educate people about how to spot possible scams.

The South African Central Bank has confirmed that neither banknotes nor coins have been removed from circulation, so anybody offering to "recall" currencies should be viewed with suspicion. While it is normal to want to help friends and family who are in need of emergency attention, it is critical to heed INTERPOL's warning and ensure the anonymous callers are working on their behalf. Consumer alerts could be sent via SMS, WhatsApp, or in conjunction with other official communications.

During the crisis, the private sector must also play a vital part in defending customers. Trusted companies should advise consumers on how to prevent pitfalls, such as responding to malicious emails, when delivering financial services. Customers who have issues with automated financial management providers should be able to reach out to successful client complaints and mediation centers.

Summing It Up

Finally, to sum up, the defeat of the outrageous efforts by others to profit financially from the crisis if the society works together. Of necessity, many individuals would need additional medical and financial assistance in order to survive, not just advice on how to prevent scams. Many nations have launched massive recovery operations. Digital financial systems, such as mobile money, have been seen to be effective at providing financial assistance to the weakest and most vulnerable people in times of crisis. Let us take action right now to ensure that new infrastructure is used for good.