Financial companies Financial institutions have suffered more than 20,000 cyber attacks in recent decades; find out more
3 most common frauds in financial companies
The financial sector is a field full of 5 tips to be an excellent copywriter opportunities, but it is also susceptible to a number of ingenious scams. As the digital age progresses, criminals are finding increasingly sophisticated ways to bypass the defenses of financial institutions. Learn about the most common scams faced by the financial sector and examine best practices for preventing them.
The importance of cybersecurity in the financial sector
According to the International Monetary Fund (IMF), in a report published this year, banks, insurance companies and asset managers have suffered more than 20,000 cyberattacks digital recruitment management in recent decades, which have generated losses of US$12 billion to the global financial sector. In addition, the number of incidents has more than doubled since the pandemic and represents a growing threat to global financial stability.
Financial institutions are being attacked in many parts of the world. JPMorgan Chase, the world’s largest bank by assets, recently reported that it faces 45 billion cyber events per day and spends $15 billion on security technology each year.
A similar story follows the Commercial
Bank of China, which was hacked in bulgaria business directory November 2023 and disrupted trading in the US Treasury market.
According to the IMF, the size of losses from financial companies security attacks has more than quadrupled since 2017, reaching $2.5 billion. In addition, the sum of indirect losses is “substantially larger”, such as reputational damage or security updates.
Main fraud schemes suffered by financial institutions
There are many attempted scams that have affected the financial system around the world. However, the three most common are:
1. Phishing
Phishing is one of the most common cybersecurity schemes, in which fraudsters send fake emails or messages posing as legitimate financial institutions in order to obtain confidential customer information. With this information in hand, accounts are accessed and funds are transferred to the criminals’ bank accounts.
Identity theft
In this fraud scheme, criminals obtain customers’ personal information to carry out transactions in their names, compromising the security of accounts and data. With this data, fraudsters make purchases of goods in the victims’ names.
3. Credit card fraud
Scams involving credit cards are very common practices among criminals, in which card data is cloned or captured and several purchases are made, causing financial losses to institutions and customers.
Best Practices for Preventing Financial Fraud
What to do in the face of such a threatening scenario? Companies in the financial sector need to prepare themselves based on these premises:
Behavior analysis of suspicious people
Analyzing the behavior of suspicious individuals financial companies can be crucial in identifying fraudulent patterns. Using techniques such as OSINT and data analysis. Through tools such as Data Lake ClearSale. Can enhance the discovery and prevention of fraudulent schemes. Enabling the identification of suspicious activities and the taking of proactive measures to mitigate risks.