Evolution Of Fraud And Financial Crime In The Era Of Cybersecurity

Today, the world is adopting the Internet of things for growing their businesses. Everything from finances to data is available on the Internet. More than one billion individuals use the Internet, which also increases the chances of cybercrime. 

Cybercrime is torturing someone for financial gains using their social media profile, images, looting their money online, etc. Simply put, Earlier cybercrime involved a computer, but the crime rate has exploded with the advent of the Internet. This article mentions the evaluation of financial crime and fraud in the era of cybercrime. 

Are fraud, financial crime, and cybercrime the same? 

When you hear fraud and financial crime, you may consider using them interchangeably. Many institutes like to distinguish between these terms. It helps them categorize the offense and make laws to protect people’s privacy. The difference between these terms is blurry, but essential understanding can help you save yourself from the loss. 

  • Financial crime: As the name suggests, financial crime is any crime related to finances. It includes money laundering, bribery, tax evasion, and using finances to sponsor criminal activities. 
  • Fraud: It is a bigger umbrella of crimes. It includes forgery, scams, insider threats, money laundering, deception of services to commit crimes, etc. 
  • Cybercrime: Is any crime committed using a network and computer. It includes misusing someone else’s personal information, hacking accounts, withdrawing money falsely from people’s budgets, etc. 

You’d be surprised that cybercriminals attack your system and private information on the Internet using phishing techniques and can commit any crime. In the end, you will be at a loss. The anonymity of the Internet allows cybercriminals to create fraudulent web pages similar to the original web pages of business entities. In many cases, some people are falsely accused of cybercrimes because the criminals use techniques where the place or person committing the crime points to somebody else. In such cases, you can always confer with a criminal defense lawyer to discuss the issue and exercise your right to justice. Criminal defense attorneys understand the different methods cybercriminals use to attempt fraud on other people. 

Types of financial cybercrimes 

The Internet has widened the horizons for criminals. Earlier, the number of financial crime cases was less, but with the advent of the Internet, the numbers have been rising profusely. Cybercriminals use different techniques to commit various crimes, such as: 

  • Identity theft: One of the major crimes on the Internet is identity theft. Criminals use phishing emails and chatrooms disguised as premium business entities. They use technology to steal your personal information such as credit card numbers, DL numbers, etc. They use these to open bank accounts, make huge purchases, and commit fraudulent transactions. 
  • Online Auction Fraud: The most alleged sites for online economic frauds are auction webpages. The sellers and bidders have a huge scope for commenting on crimes on online auction sites. Nobody knows what happens behind the screens. Sometimes bidders use technology to show their money has been deducted, whereas it is not. In other cases, sellers may send fraudulent and phishing links to transact huge amounts and steal personal data from the bidders. 
  • International cybercrimes: You may have heard people speaking about getting invites for international lotteries, financial giveaways, participating in events that promise huge cash rewards, etc. Cybercriminals use phishing links to send out invites to people. The information on the invites seems so real that nobody can think of it as a phishing mail. People use sympathetic events in the world to crawl money from people’s accounts. The information you enter on such links is stored in their network, and they later use it for a fraudulent transaction on your account. 

Tips to prevent financial cybercrimes 

There are several cybersecurity laws enforced worldwide to protect individuals from any crimes. The banks and business firms use the unified model to prevent financial crimes. Individually, you can do your bit to protect yourself from online frauds and financial crimes. You can follow the tips below: 

  • Keep your information private: You should avoid disclosing your information about credit cards, debit cards, driver’s license numbers, etc., on the Internet. Always use a protected website for transactions. Do not enter any information on pages you may find misleading or confusing. 
  • Look out for unusual transactions: You need to be vigilant about unusual transactions on your account. Generally, cybercriminals send text messages considering information about bill payments, so you do not feel suspicion. You can do this by not giving access to auto-debit for any bill or expense from your account. 

Final words

The increasing use of the Internet and access to the network has resulted in a rise in cybercrimes. The cybersecurity laws are in place, but the technology aids financial crimes to evolve. The criminals use unique methods to draw out money from people. It can be a sympathetic reason, fraudulent transaction, mimicking a business entity, or insider threats.