In a world where the economy is slowing down and fraud continues to rise, it is vital for banks and financial industries, now more than ever, to use advanced security systems such as Skurio’s domain monitoring solution to keep themselves and their consumers safe from fraud.
With enhanced tools against cybercrime, companies in the banking & finance industry can monitor the web to see if there’s been any suspicious activity of their domain name being cloned or altered.
How are Escalating Fraud Rates Affecting the Banking and Finance Industry?
The banking and finance industry is still one of the most targeted industries by cybercrimes globally. This is because bank and investment scams are one of the top ways criminals can gain personal information.
Despite banks’ best efforts to tighten security measures to cope with this increase in fraud, criminals continue to find ways around these measures. Let’s have a detailed look into some of the reasons why:
1. The industry holds a large amount of money
With so much money being held by banks and financial institutions, it is no wonder that they are such a target for cybercriminals. There are many ways that these criminals can get their hands on this money, and they are always looking for new ways to do it.
The financial services sector contributes more than 8.6% to the UK economy, estimated to be worth £164 billion in 2020. This makes it an attractive target for criminals.
Furthermore, the banking and finance industry is global. This means that there are many ways to get access to money. Cybercriminals can target any number of banks and financial institutions worldwide to get their hands on this money.
2. The industry is constantly changing
Banking and finance are continually evolving industries. With new technology comes new ways for criminals to commit fraud. For example, the introduction of contactless payments has made fraudulent activity easier. No longer is the famous Ponzi scheme the most common type of fraud – much less glamourous but effective methods are now creating wealth for those with malicious intentions.
Contactless payments allow consumers to make purchases without entering their PIN or signing for the transaction, making it relatively easier for criminals to commit fraud without being detected.
3. Increased use of technology makes it easier for fraudsters
Another example of how the industry is constantly changing is how consumers are now using mobile banking. It includes transferring money, paying bills, and checking their balance. This trend has been on the rise in recent years, and it shows no signs of slowing down.
More people are using technology, but there are concerns that more should be done to ensure that consumers feel sake when banking online. A Natwest survey revealed that 50% of British adults online declared that they’ll be online victims of fraud, while only 33% said they’d be worried about being on the receiving end of a home burglary.
Additionally, only 52% of British adults would feel comfortable entering their bank details on a smartphone app or tablet, while 80% declared they felt safe in entering bank details on a desktop device. The best banking books have long supported the notion that customers will only migrate to online banking if they trust their provider to step in and protect them if things go wrong.
4. Access to the Personal Information
In the banking and financial industries, fraudsters can get access to a lot of personal information. This includes your social security numbers, credit card numbers, and bank account numbers. With this information, they can commit identity theft or even drain someone’s bank account.
Moreover, the banking and finance industry is not the only one at risk. Any business that holds personal information is at risk of being targeted by cybercriminals.
5. More transactions are being done online
Online transactions are convenient for consumers, but they also provide an opportunity for fraudsters. When a transaction is done online, it is difficult to know who you are dealing with and with the global digital payments industry having a 40% increase in value over the past 2 years, the opportunities for scammers to take advantage are endless.
For instance, criminals could set up fake websites that appear legitimate. They could then get people to input their personal information, such as their credit card number or bank account number. Once they have this information, they can use it to commit fraud.
Another way that criminals can scam people is through phishing emails. Criminals use phishing to send emails that appear to come from legitimate companies.
The escalation of internet fraud is a serious issue that the banking and finance industry must address. However, it is not an insurmountable problem. By taking proactive steps to protect customers and implementing additional security measures, the industry can fight back against online scammers.
Customers need to be aware of the dangers posed by cybercrime and take precautions to protect their personal information. By working together, we can keep our finances safe from online predators.