Online Banking Fraud

What is Online Banking Fraud?

Online banking fraud is a type of cybercrime where criminals use various techniques to illegally access and manipulate online banking accounts, often resulting in financial losses.

How Online Banking Fraud Occurs?

1. Phishing
   • Credential Theft: Fraudsters trick users into providing online banking credentials through deceptive emails or messages.
2. Malware
   • Keyloggers: Malware installed on a user’s device captures login information for online banking accounts.
3. Man-in-the-Middle Attacks
   • Intercepted Communications: Attackers intercept communication between the user and the bank to steal credentials or alter transactions.
4. Credential Stuffing
   • Reused Passwords: Using stolen credentials from other breaches to access online banking accounts.
5. SIM Swapping
   • Phone Hijacking: Fraudsters take control of a victim’s phone number to intercept SMS-based authentication codes.

What are the Impacts of Online Banking Fraud on Businesses?

1. Financial losses
   • Unauthorized Transfers: Direct financial losses from fraudulent transfers and unauthorized transactions.
2. Customer Trust
   • Erosion of Trust: Loss of customer confidence in the security of online banking services.
3. Increased Security Costs
   • Fraud Prevention: Higher costs to implement advanced security measures and fraud prevention technologies.
4. Regulatory Consequences
   • Compliance Issues: Potential fines and regulatory actions for failing to protect customer accounts adequately.
5. Operational disruption
   • Support Burden: Increased demand for customer support to address fraud incidents and secure accounts.