Financial firms are a key sector of every economy in the world.
Companies in the finance world offer a large number of services to businesses and clients. A big amount of value running into trillions of dollars exchanged each day is facilitated by the finance sector. Financial institutions are considered the rock on which industrialization was built.
Firms in finance make use of information technology to transmit data.
A single breach in the system utilized in transmitting this information could lead to the closure of businesses, profits, and reputation. The fact that banks, insurance companies, and other financial institutions handle a lot of money is what makes them targets for most cybercriminals. Most attacks on banks’ systems are focused on swindling people of their cash.
Below, you’ll see the numerous cybersecurity issues that currently plague financial firms.
1. Identity Theft
Studies have shown that on average $10 million is lost annually by banks due to identity theft. In fact, intensive research revealed that as much as 15 million people in the U.S. have lost money one way or the other from identity theft. The way identity theft is carried out by these cyber-attackers is by utilizing the personal and credit data of an individual to collect a loan. This data could be gotten from hacking Wi-Fi security.
This loan is usually used to make a purchase. Furthermore, these malicious hackers make gain from their victims by selling sensitive data on the dark web for other cyber-criminals to use.
Finance has remained the sector worst hit by ransomware. Ransomware works by holding the data of the victim ‘captive’ requiring remuneration to be received from the victim before the release of the data. Ransomware is usually in the form of software that is activated when a person accesses a link in an unsecured email.
3. Synthetic Fraud
Synthetic fraud entails the use of a fake identity. The hacker creates numerous social security numbers and identification numbers, all of which are fake to request loans from the bank to make purchases online. During audits, the social security number would not be able to be found in the system because it never existed in the first place. It has been projected that over $300 million have been lost by various banks to synthetic fraud because of the non-existence of identity numbers.
Jackpotting is prevalent in the U.S. and European nations. The cybercriminal dresses like a maintenance uniform to gain entry to an ATM. The hacker uses a key that cracks the ATM and is able to leave the area without being suspected of foul play. It takes several days for the bank to detect the loss of the money. Frequently, these cybercriminals that deal with ATMs fix in skimmers that can steal the data of individuals that use the ATMs.
Although the finance sector is one of the most important aspects of the economy, it is frequently hit by hackers who want to make money through illegal means. Some of the most commonly used methods of these cyber criminals include identity theft, jackpotting or ATM malware, ransomware, and synthetic fraud.