Achi news desk-
So far, e-commerce companies have used such tactics, but now it’s also happening in online banking and other financial services.
Most people think that online scams are only perpetrated by cybercriminals, but this is not always the case. In today’s age, people are cheated in different ways, and interestingly, the perpetrator of the fraud is not always an outsider. It is not necessary that only a thief will cheat you. Today, dark patterns are used to commit fraud. These are techniques used by large institutions to fit into their marketing tactics and take advantage of you. Until now, e-commerce companies used such tactics, but now it is also happening in online banking and other financial services. Here we look at how dark patterns are used in online banking, and how you can protect yourself.
The name “dark pattern” itself hints at its meaning. “Darkness” refers to darkness and “pattern” means a definite way of doing something. This is called a dark pattern when a customer is kept in the dark and provides incorrect or incomplete information. E-commerce companies have used this tactic a lot, but it is now being used in online banking as well. Sometimes loans are given and everything related to interest rates is not disclosed. Sometimes a long list of hidden charges are charged, but it’s all proven to be free of charge. Not only that, people are also trapped in receiving unwanted subscriptions. These are all dark patterns used to defraud customers.
Consumer survey platform LocalCircles revealed in a survey on dark patterns in online banking that about 63% of people had to pay hidden charges in online banking. Let’s explain this with an example. A person takes a personal loan of Rs 5 lakh. An executive at the bank calls him and offers to submit an online application quickly, and he will receive a loan at an interest rate of 11 percent, but it is not stated that he will have to pay an interest rate of up to 36 percent under different terms and conditions. . The person realized this when he started paying EMIs.
In a sample survey conducted in 363 districts by Local Circles, 41 percent of users said they encountered interface glitches. Online banking platforms are disruptive while the consumer is transacting. They drive customers to additional product or service subscriptions or purchases. For example, when you try to pay your credit card bill on the bank’s website, the bank starts sending pop-up ads for loans or credit card upgrades. This means that the customer cannot complete the task of paying the bill comfortably and in addition, they are forced to repeatedly close unwanted messages. This is called Interface Interference which means forcing advertisements on you, persuading you to purchase unnecessary services.
In the survey, 32 percent of users experienced subscription traps. Subscription traps occur when consumers easily sign up for a new online product or service, but are charged repeatedly for that service. They can’t cancel it easily even if they want to. To stop it, you have to go to the bank branch. Additionally, 39% of users have faced instances of Bait and Switch. It is about offering attractive interest rates on loans and deposits, but later it turns out that the interest rate is different. There are also many hidden charges to pay.
The government hits dark patterns consistently. However, it didn’t work. Last year, RBI Deputy Governor Mr. Rajeshwar Rao warned against the use of dark patterns in offering digital loans. He said people are misled towards expensive loans. In light of the increasing difficulties, in 2023, the Central Consumer Protection Authority or the CCPA, published a gadget notice to protect the rights of consumers. It’s called “Guidelines for the Prevention and Regulation of Dark Patterns.” It covers all platforms, advertisers and sellers providing goods and services in India.
Banking expert Amit Tanwar says almost everyone falls victim to dark patterns. People are cheated through SMS, WhatsApp messages, emails or direct calls. Sometimes customers are tempted by cheap loan offers, sometimes they are convinced to sign up for the service. This is presented as the most necessary factor. In this way, people sometimes pay hidden charges, and sometimes get caught in subscription traps. This problem is not very old as online banking has become popular in India only in the last two decades. On the one hand, online banking has made banking easy, on the other hand, these problems can undermine people’s trust in technology.
In view of this growing threat, it has been decided that RBI, banks and all stakeholders will have to be more proactive. Although there may be a delay, it is to be hoped that the government, just as it was strict with the e-commerce companies, will show the same strictness here as well. But, before loopholes in laws and regulations are fixed, it is also necessary for customers to understand this issue.
To avoid dark patterns in online banking, it is necessary for the customer to find out about all the charges when applying for the loan. They should ask what the actual interest rate on the loan will be, they should demand written information about the annual percentage rate. This includes all types of costs including interest, processing fees, etc. Read all terms and conditions. Many times, there is an asterisk along with the terms and conditions. Pay attention to this. If you become a victim of any dark pattern, you can also complain about it. You can complain to the National Consumer Helpline by dialing the number 1915. You can also complain via WhatsApp at 8800001915.
Posted: March 31, 2024, 1:11 PM IST
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