Saturday, 21 April 2012

Sharing banking details online fraught with risks


Most individuals would have encountered a situation where there are emails and messages sent to them asking for personal information and they constitute an effort to commit a fraud. While many routes can be clearly identified as belonging to this category, often the situation is such that the position is not clearly distinguishable.

In many cases there is a fear created in the mind of the individual and they results in giving up some details that proves to be a costly mistake. Here is a way in which this happens and ways to tackle this effectively.

Tax department route: While there are various routes by which the individual is asked for personal information, one common way is to lure them with the promise of a prize or large sums of money. This makes various people greedy to get the amount, and hence, they give information about their bank details. In many cases they also end up transferring money to the people asking for the information as an initial payment to release the so-called prize.

Having heard a lot of such cases, people now know that this is something that is to be avoided. Now another route that is being used is to make it seem as if the information requirement is coming from the income tax department. On hearing the details of the income tax department, there is a fear that spreads through many people and they readily part with the asked information.

No information asked: One of the things that have to be understood is that there is never any personal information that is asked by the income tax department through emails and phone messages. Many people say that the received email asked for their bank information for transferring refunds.

It has to be known that the details about the refund are taken at the time of the filing of the income tax returns. There is space in the income tax return form where all the details about the bank have to be given, and hence, same information is never required again.

Overall policy: One way in which this situation can be avoided is by ensuring that you do not share any sensitive information with anyone. Once it is decided that there will not be any information given, there has to be a study of what is being required and who is actually asking for the information. When this is done, it will be seen that the email from which the information is being desired is not an email ID of the tax department but one that actually makes it look like that.

The other thing to see is that the income tax website specifically warns that they do not ask for any information, and hence, any such details required are actually a fraud that is being perpetuated.

Intimation: There are several incidents when the authorities ask the individuals to give them details about some specific activities so that they can take action on the same. This is usually done in the form of a written communication sent to their home address or address mentioned in the income tax records.

This is a part of the income tax assessment process and meant to be submitted to the tax department for enabling them to complete their work. This has to be considered separately from the financial records that are demanded. Being clear on this point and by undertaking adequate due diligence, it will also clear the situation as to which of the requirements is genuine and which needs to be avoided.

### Do you share any such information online? ###


1 comment: