It is ironic to realize that while the latest advances in technology are being implemented to secure financial transactions and systems to a greater extent, cyber criminals and fraudsters, too, are adopting the latest technology for their heinous intentions. In recent times, some new trends have emerged alarmingly in investment frauds. Let’s look at them and learn how to stay safe from such new-age risks.

1. Identity Theft:

Also known as Account Takeover, this happens when some cyber criminal is able to obtain credentials for an account and thus take control of the same illegitimately. The fraudster will thus be able to make fraudulent transactions and even steal the rewards and gains that are originally meant for the owner of the account.

The best and most effective way to secure yourself from this is to ensure that your own account credentials are always kept secure and are also reset regularly.

2. Automation:

In an age when Artificial Intelligence looks primed to take over everything, it is completely plausible that cyber criminals might deploy automated applications or bots to hack into users’ accounts and thus place illicit transactions, resulting in significant loss or theft.

One would be advised to adopt the most thorough authentication practices to ensure that this does not happen.

3. New Digital Payment Channels:

Regular modes of payment, such as bank transfers, are being replaced with new-age modes such as UPI and e-Wallets. While these are usually secure, too, there is a greater risk of fraud as UPI and e-Wallet details are more susceptible to theft and abuse.

To prevent this from happening, kindly keep your UPI and e-Wallet details always secure.

4. False Identities:

With the proliferation of social media networks, your personal information is easily available to the most malicious fraudster or cyber-criminal. It can be used to create a false identity and thus cheat and defraud financial organizations and their customers as well.

To prevent this from happening, avoid sharing your personal or sensitive information on too many websites or social media forums.

5. Targeted Attacks:

With the latest technology at their disposal, cyber criminals are also able to conduct targeted attacks, which affect adversely the entire network or ecosystem of the intended target. Many organizations have fallen prey to such targeted attacks that are planned and executed meticulously, and it is not implausible that financial service providers are susceptible too.

To ensure that such targeted attacks are kept at bay, organizations must take up the initiative to secure their own systems and processes and also encourage the same for their customers.

Financial fraud will continue to be a hazard for companies and customers even with the advent of technology. Therefore, it is necessary for both companies and customers to always adopt the most stringent and secure precautions.