In an era of fast-paced technological advancements, financial literacy is crucial for every individual using digital platform for financing/transactions or investment. These days, several people are utilizing smart apps for financial transactions, such as availing online credits, online bill payments, ordering food from delivery websites, online shopping, and purchasing daily household items. This has also led to a significant rise in cases of cyber fraud, and there are several reports about people encountering online frauds and scams. Hence, it is imperative for individuals to focus on digital and financial literacy and educate themselves about these fraudulent activities.
While it may not be a silver bullet on its own to eliminate cybercrimes, it can significantly empower individuals and businesses to make informed decisions and take proactive measures to protect their financial assets and personal information. It’s important to note that while financial education is valuable, it should be part of a broader approach to cybersecurity. Cyber threats are constantly evolving, and even the most educated individuals and organizations can fall victim to sophisticated attacks.
In this article, we will explore key points highlighting the significance of financial literacy and how we can steer clear of scams and frauds.
Financial education in schools/colleges
Financial education should not remain an optional skill or subject in schools and colleges; it should be a mandatory part of the curriculum. Financial literacy empowers students to make informed choices about which financial services and products are suitable and reliable for them. Every student should have an awareness of essential concepts such as CIBIL score, investing, the role of AI in financial technology, cyber frauds, and more. Gaining financial knowledge at a young age will give students the wings to handle their finances safely in the future, especially when cyber frauds are on the rise.
Data protection
People with financial education are more likely to understand the importance of strong & unique passwords, two-factor authentication, and regular software updates. They are also more likely to use secure online payment methods and avoid risky online behaviours. Financial education can emphasize the importance of safeguarding sensitive financial and personal information. This also includes understanding data privacy laws and best practices for data protection.
Increasing
awareness of the
cybercrime report portal
After the pandemic, there has been a steep rise in the cases of cyber crimes; according to a recent report by PWC India, 52 per cent of Indian organisations experienced fraud or economic crime within the last 24 months. Cybercrime police can sensitise the public about a step-by-step guide to filing a complaint on the National Cyber Crime Reporting portal and preciously explain how easily anyone can reach out to the National Cyber Crime Reporting portal (Helpline Number -1930) to register any complaint about cybercrime.
Awareness
campaigns
The government should take the initiative to increase financial literacy by organizing awareness campaigns, and workshops focused on cyber fraud and online scams. Police and cybercrime agencies need to highlight major types of crimes through public awareness workshops, including interactive quiz activities and practical examples demonstrating how to deal with fraudulent calls and messages. Placing posters and flyers in public spaces and creating movies centred around cybercrime can also effectively raise awareness among citizens. During events like the G20 summit, the government should prioritize areas such as cyber security and digital skill development.
In a nutshell, the consequences of the financial scams are extremely dangerous. People need to remain cautious at all times and educate themselves about fraudulent activities to avoid falling victim to these kinds of frauds. In addition to financial education, it’s crucial to have robust cybersecurity measures in place, including regular security audits, employee training, and incident response plans. Also, the government needs to impose strict rules and regulations on organizations that provide financial services, including short-term loans and other financial products.
Mr Mahesh Shukla, CEO & Founder, PayMe