Scams: 4 in 10 Brazilians have been victims; see how to protect yourself

O Digital Identity and Fraud Report 2024a survey conducted by Serasa Experian, indicates that 42% of Brazilians have been victims of scams and financial fraud in the country, which amounts to 4 in 10 Brazilians. The types of scams most reported by consumers were the use of credit cards by third parties or counterfeit cards (39%). Financial fraud came in second place (32%) – including payment of a fake bill or Pix.

Financial scams and fraud cause losses to consumers. According to the study, of the 42% of Brazilians who have been victims of scams, 57% suffered financial losses of R$2,288 on average, which is equivalent to almost a month and a half of work for someone who earns the minimum wage.

The study also mapped out the scams most feared by consumers. In first place is the fear of payment fraud, which involves credit cards, at 36%. Next comes the fear of Pix transfer scams and data leaks, both at 21%. Only 2% of respondents said they were not afraid of being scammed.

Check out tips on how to avoid credit card scams:

Use virtual card for online purchases;

Make purchases in official stores;

Adopt some security measures, such as: activating transaction alerts (whether by SMS or email) at your bank;

Avoid accessing the bank app and carrying out financial transactions while connected to public Wi-Fi;

Make a habit of checking your bank statements;

Never provide personal or credit card information;

Discard documents that have your card information correctly;

Create strong, unique passwords and avoid using the same password for multiple accounts;

In the online environment, promotions can be tempting to consumers. However, it is necessary to be careful and attentive in these situations, as highlighted by lawyer Mozar Carvalho, founding partner of the Machado de Carvalho Advocacia law firm.

“Always be wary of tempting promotions that seem great, they usually only seem that way. They are not, so be careful with this because it is a way of cheating, of capturing your card number, your CPF number, your identity number and your information, your data in general to be able to get you into trouble later with fraud”, points out Mozar.

Consumer specialist Renata Nicodemos, partner at the Ernesto Borges Advogados law firm in Campo Grande (MS), mentions other precautions that people can take, especially with regard to payments not only online, but also in person at ATMs.

“Be especially careful with ATMs. Check for any strange devices attached to the ATM before inserting your card. Choose ATMs located inside bank branches. When making purchases online, make sure the website is secure. Use virtual cards, because they have a temporary number that expires after the transaction, which reduces the risk of fraud. It is also important to keep your contact information updated with the financial institution so that you can receive notifications and security alerts,” warns Renata.

If you are a victim of a scam or financial fraud, you have several rights before the courts. According to Renata, consumers who are victims of fraud have the right to dispute fraudulent transactions with the financial institution, receive assistance and support during the process, and request immediate blocking of their card.

For her, access to information is crucial to avoid these problems. “Awareness is a powerful and necessary tool in preventing fraud and helps control risks and protect both individuals and companies,” emphasizes Renata.

Psychological damage

Regarding the differences in the index by age group, the study found that those over 50 years old appear to have the highest rate of having suffered fraud (48%). Also according to data from the study, after suffering fraud, 87% of respondents said that their concern about the issue “increased”. The percentage increases to 91% when considering the group of people who suffered financial loss.

According to neuropsychologist Aline Gomes, when a person is scammed financially, they go through different stages of emotions and sensations. In the short term, anger, sadness, shame, helplessness and even guilt. In the medium term, anxiety and fear come.

“This situation puts Brazilians in a state of alert and anxiety that ends up consuming more energy than they should or need. It means that Brazilians will have to dedicate part of their attention and focus to something that indicates alert and danger, when this attention and focus could be directed to something more edifying and productive. Depending on the individual’s health history and the impact that the blow had on their life, there may be an aggravation of phobias and disorders”, warns the neuropsychologist.

Companies

In the scenario of scams, companies are not exempt from danger. The survey shows that companies’ concern about the recurrence of scams increased by 58% in one year. The increase was even greater in terms of company size, with the rate rising to 68% for large companies. These companies are also more aware of the importance of preventing criminals.

Tips for companies to avoid falling for scams:

Businesses can reinforce security by implementing advanced technology to protect data and transactions;

Promote employee awareness with regular training so that they know how to identify and react to fraud attempts;

inform customers about the company’s official communication and transaction channels to prevent consumers from falling for scams.

In 2024, “Protection from Fraudulent Transactions” is the second focus of companies (35%), behind only “Gaining More Customers” (45%).

Professor and lawyer specializing in Digital Law, Lucas Karam, highlights that to mitigate potential losses for businesses caused by credit card fraud, it is necessary, above all, to pay attention to the choice of payment intermediary.

“This intermediary needs to have high technology and an effective flow to carry out the credit analysis to verify whether the person who is making the purchase is actually the owner of the card,” says Karam.