Why is financial cybercrime a problem, and how can it be stopped?
Last Updated: | July 9, 2022
Financial cybercrime can have severe repercussions and can impact businesses of all kinds and in all industries, as well as private individuals. But what kinds of attacks are driven by monetary gain, and how can we stop them from succeeding?
What exactly is financial cybercrime?
Financial gain through financially motivated criminal conduct, such as identity theft, ransomware attacks, email and internet fraud, and attempts to acquire bank account, credit card, or other payment card information, is known as cybercrime.
Theft of payment card data, gaining access to bank accounts to carry out unauthorised transactions, extortion, using a false identity to apply for financial products, and other actions fall under the category of financial cybercrime.
The growth of cybercrime has a significant influence on the financial services sector since it is a particularly profitable target. However, cyber financial crime also has an impact on a variety of businesses and gullible people like you and me.
Anyone could become a victim of software made to steal passwords, virtual wallet targeting, or credit card skimming.
What kinds of assaults are driven by monetary gain?
There's only one small snag: To get the payout, you must send money through Western Union for some bizarre and unexplained reason that you might not entirely understand. After that, things get tricky. Sounds familar? The story is well known, but the stories have evolved.
The most common social engineering tactics include tricking individuals into divulging sensitive information. This might include anything from fraudulent emails purporting to be from PayPal or iTunes reminding you of your monthly billing in an attempt to persuade you to click on a phoney link to phoney emails purporting to be from Netflix requesting you to pay your subscription invoice.
What negative effects do financial crimes have?
A successful attack can have severe impact on a firm and have dramatic consequences. Large sums of money lost can have a significant influence on a company's entire economy and, in the worst situations, even result in bankruptcy, especially if the business is small.
Another regrettable result is reputational harm in the eyes of stakeholders, clients, and the general public. Private persons who have had their identities stolen may endure having their accounts emptied, savings swiped, and obligations taken on in their names.
What can be done to stop financial cybercrime?
Exploits typically occur due to human error, hence education and awareness are obviously crucial.
In order to change these behaviors, it is crucial for businesses to emphasise awareness among their staff members. This will provide them the understanding of how they can be deceived. Additionally important are having a functioning threat intelligence system, regular vulnerability testing by the IT security staff, and strong online safety practices.
Consider the following when it comes to you as an individual:
Be constantly watchful and cautious when conducting online transactions, shopping, or logging into your online bank and government accounts.
Always use official websites to conduct payments and transfers, and think carefully about who you're giving money to and why.
Avoid clicking on shady links, always confirm the sender's identity, and, if in doubt, get a second view.
- ACCOUNTING FOR CPAs
- BOOKKEEPING SERVICES
- ACCOUNTS PAYABLE
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- TAX PREPARATION
- BANK RECONCILIATION
- FINANCIAL REPORTING
- PAYROLL PROCESSING