There has been a rise in the number of e- frauds because of the global pandemic.

Many
major markets have collapsed which have lead people to commit digital scams . ​It is when
a fraudster approaches a merchant and proposes a business transaction using
fraudulent means such as a stolen or fake credit card to pay for it. This leaves the
merchant without payment for the sale that was just made. There was a 121 % rise
in e frauds in India since the pandemic began ( March 11) in comparison to the
situation before the lockdown according to transunion . There have been 12 cases
of e frauds reported on a daily basis. However e frauds started decreasing after
shops and businesses started to open in person. From the second phase there was
a 21 % decrease in e - frauds . it had not stopped completely but eventually the
number of e - frauds kept decreasing as businesses and shops were opening up in
person basis. Using online payment methods such as debit or credit makes it easier
to commit such frauds , since everything became digital during the lockdown it was
easier to commit such frauds and that's why the number increased.

Frauds happen on a daily basis in one form or another and with the rise in
technology and online usage , e frauds are becoming more popular. It mainly occurs
when credit cards are stolen or lost , many e - commerce websites store your bank
account information such as card no , cvv etc and transact money from it or the bank
details are not secured. When one buys a product from the shop he/she will need to
use their credit or debit card while making the transaction but when one buys
something from a web shop they just need the card details which can be stored
digitally and may not need the card in hand. Many times people get calls from
fraudsters in the name of banks asking for account details after a purchase and if
one gives the details they can incur heavy losses. If one makes a purchase through
amazon which is a secure e- commerce website , they are less likely to get
scammed as on amazon as it is a secure e- commerce website and if one makes a
purchase thy are given a code via text , email or call with the price of the product
which they have to enter in the website so that they know that their bank details are
secure and are not getting scammed but many a times phony sellers, set up fake
accounts to lure buyers in and take their money, without delivering the goods that
were promised . if a person orders from an ecommerce website that is not so popular
or well known , it is likely that they will get scammed as it is not secure enough.
Many times there are advertisements on social media such as 1$ or a cheap rate for
a product so the customer will get excited and will tend to purchase it thinking its
genuine but it turns out to be a scama as the product is not delivered but the money
has gone to the fraudster. Hackers either use the data themselves or sell it to
cyberthieves to make fraudulent transactions. The customer often keeps the
purchased item, but gets a refund, because they falsely claim that the product does
not live up to expectations or because they claim payment was made with a stolen
card.​ ​Phishing takes place when a hacker pretends to be a known contact and
requests personal data, or tries to get you to install malware, which can then retrieve
the data itself. The main reasons why online frauds occur are -
1- it is easy for hackers to steal the needed data
2- it is easy to buy the information on the black market
3- lack of prosecution for these type of crimes

There are prevention measures as well such as

1-​ ​DUAL PROCESS MODEL  

This is a concept that individuals have two different sets of decision-making
processes. The first is impulsive, fast and acts without thinking but relies on past
experiences , so if one is getting scammed they can take action at the right time to
prevent it by thinking of a similar situation. If they think and take action to stop it they
can save a large amount of money or so. Slow thinking is more deliberate, requiring
attention to the effortful mental activities that demand it. So if one pays attention and
thinks over the situation rather than being impulsive can prevent getting scammed.
People should think fast in case of a caller by a scammer and slow if they are
purchasing a product from an e-commerce website.

2- ​THE ANCHORING HEURISTIC  

This is when humans will rely on the first piece of information received before making a
decision. Humans believe the caller if they ask for an otp or any bank account details but
they are actually fake employers trying to extract money but these calls make the customer
feel that it is a reliable source of information but get scammed. The government and many
other private companies put out announcements saying that they never ask for credit card
pins and otps so that the customer has information and will rely on it to avoid getting
scammed.
In such a situation one is being warned by the company so they will rely on this information
as it is first hand

3-​ ​NUDGE THEORY  

Nudge means picking someone to get attention​ . ​ Behavioural nudges​ ​are alternatives to
using standard government interventions in markets. The government makes
announcements about these frauds and offers prizes and subsidies to those who
catch the fraudster , this will be an incentive for one to become more aware and
catch the criminal.

4 - BOUNDED RATIONALITY 
This concept states that our decisions are rational but limited by our mental
capability. Citizens must be given information about e - frauds so that they have the
mental capability to defend themselves in any given situation . this information will
give them the capability to store this information and make a rational decision when
required.

One must look at these theories to avoid scams but there are many other theories
and concepts as well which one must not overlook such as keeping financial data
separate , being aware whether its a scammer or a genuine caller/seller , keeping
passwords , otps , atms pins , etc confidential and being aware of phishing. One
must look if it is certified by the bank or company and must crosscheck with them as
well . One must make a balanced use of e banking and cash as both have its own
advantages and disadvantages , so that we avoid frauds and use both at the right
time and place.