An online financial crime is a type
of offense that deals with financial frauds, or online theft with the help of
the Internet, or online payment gateways. These crimes can cover a huge
assortment of offenses, and anyone who is caught doing so can suffer severe
consequences. The reason that financial crimes are a big deal is because of the
fact that they can severely impact large and renowned businesses,
organizations, and companies and can financially bring them to their knees.
These types of financial frauds can
cause more damage in the long run than other types of finance-related crimes.
The losses can amount to approximately £62B in a year – And that’s just in the
UK. According to the co-founder of anti-virus software firm Kaspersky Lab, the
amount of money stolen from financial institutions, banks, companies,
organizations, and basically the general public can go up to approximately
$100B every year. A cyber-security organization based in Russia has mentioned
that a couple of their citizens were hiring ‘cyber mercenaries’ – Hackers with
tons of experience who can easily swindle victims and steal loads of cash from banks through financial frauds. The money will be used to sabotage projects, or
to spy on high-profile individuals. There’s also the possibility of cyber
warfare, where attacks will be inflicted on power plants, factories, hospitals,
and public transport.
How
To Avoid Financial Frauds
1. Always verify your investment holdings independently
with a stockbroker, or an investment adviser. Don’t just depend on the
statements made by your advisor. Check your statements every month to verify
all of your purchases and withdrawals.
2. Plenty of purchases and fund transfers are now made
online, with the help of credit cards and online banks. Sometimes, people are
convinced that their accounts are safe, because these transactions are secured
by an SSL. However, hackers can actually break that SSL and grab their info.
Always secure your computer and Internet connection, instead of simply relying
on payment Websites for transactions.
3. When withdrawing from an ATM, make sure that nobody is
close by so they won’t see your PIN number. Cover up the numbers with your free
hand while logging in. Do not tell anyone what your PIN number is, or post it
online. It’s important to know that a real online bank won’t ask you for your
PIN number either.
4. Wiring money involves transferring cash from one
account to another, so be vigilant when doing so. A lot of scammers will
manipulate bank wires when a transaction is being made. Money transfers cannot
be reversed after they are done, so recovering your cash is a near impossible
task. Before wiring cash, check to see if the person or organization you’re
dealing with is 100% legitimate. Plenty of these online thieves turn to
Websites like Craigslist, telling potential victims to purchase a product or
service from them. Avoid these criminals at all costs.
5. Always check the receipt versus your statement. If you
come across an unfamiliar transaction, call your card company or bank right away.
Get rid of all documents that contain your personal information, and not
storing them in your bag or car is also a good way to prevent strangers from
stealing your info for financial frauds.
