Financial Frauds and How to Prevent Them

Class 7 Social Science · Chapter 20: Banks and the Magic of Finance · NCERT Exploring Society: India and Beyond section 20.6

Learn

Digital payments are easy, but fraudsters use fake calls and messages to trick people into downloading harmful apps or sharing bank details and OTPs (One-Time Passwords, temporary codes that approve a transaction). With these, criminals can take over a phone and empty an account. Never share your phone number, account number, address, passwords, PINs or OTPs with strangers; don't click unknown links or videos; don't store PINs or passwords on your devices.

Meher's grandmother got a call saying her account would close unless she shared an OTP. Meher reminded her that banks never ask for OTPs, and they reported the call. If fraud happens, report it at once on the helpline 1930 or the National Cybercrime Reporting Portal (cybercrime.gov.in). Together, banks, payments, stock markets and alert citizens make up financial infrastructure that encourages saving, credit and investment, boosting the economy and the nation's prosperity.

Explore: safe or risky?

1. Sort each habit.

Remember

• Never share OTPs, PINs or passwords; avoid unknown links and apps.
• Report fraud on helpline 1930 or cybercrime.gov.in; safe finance boosts the economy.

Quick check

A caller claiming to be from your bank asks for your OTP. You should …

1. refuse, hang up and report it
2. share it quickly
3. share half of it
4. send it by message instead

Think about it

How can we enjoy the convenience of digital payments while staying safe?

Practice

Practise with fresh questions at three levels (easy, medium, hard), some answered hands-on, with hints and worked answers. Get 4 of your last 5 right to finish the topic.