How To Prevent Online Banking Fraud

Guardian of the Internet Safe: One guide for not succumbing to online banking scams.

Convenience banking via the internet almost made checks obsolete: entering them into the system for payment. Convenience reached the point where it can be seen as a better improvement to cyberspace where fraudsters are going to enjoy the biggest fruit of exploiting new ways of making money through loopholes to forfeiting profit realized. Internet banking fraud protection is not luxury but a necessity for personal and business. This in-depth analysis describes in detail multi-dimensional process of cyber wealth protection based on technological standards, behavioral change, and futurist thinking mindset.

– The Unpacking the Topography of Online Banking Fraud.

As a precaution, to implement countermeasures, a sufficient awareness regarding different forms of internet banking fraud should be attained. The most predominant are two.

A. Phishing Attacks:

-Definition: Fakes, SMS, or web duplicates, copies of actual financial institutions, intending for misleading clients into revealing their private information, e.g., login passwords, pin codes, or card numbers.

Forms:

-Spear-Phishing: Very targeted and highly advanced attacks against individuals or corporations where personal information of victims is not ordinarily used.

-Whaling: very advanced targeted attacks on very high-profile targets whom are typically CEOs or executives.

-Spoof SMS.

-Vishing: Phone-phishing attack.

These are red flags:

-Blanket greeting as in Dear Customer.

-Threat and/or sense of urgency message.

Ask for personal information over phone or email.

Link or attachment which is suspended.

B. Malwares and Key loggers.

-Definition of Hackers: Viruses which, in turn, steal all vital data from your computer which includes bank names, bank passwords and such logins.

-Keyloggers: Record all keystrokes with all associated passwords and other sensitive information including that what has been particularly and specifically designed to monitor.

-Trojan horse: Such as an ordinary program works, but undergoes sometimes even secret malicious code.

-Crypts your documents and only will decrypt them for you when you pay.

-Observes and relays the activity of the user to the hacker.

-Infection may occur through infected web pages, email attachments, or programs downloaded.

C. Account Takeover (ATO) 

– Preliminary injunction: An online bank account can easily be opened by a fraudster after being hijacked with the aid of the user to accomplish the illegal transaction, transfer, or modification of account details.

– Modes:

– Hacked passwords (malware and phishing).

– Bruteforced (Repeated login attempt).

– SIM swapping: Substituting an unsuspecting individual’s number in a simulator’s SIM card. Social engineering.

– Consequences: Financial loss, issuer damage credit record, and identity theft.

D. Man-in-the-Middle Attacks:

Definition!: Interception of communication between a customer and his bank to make interception and alteration of information being communicated by fraudsters.

-Methodologies Under MitM:

-Compromised Wi-Fi networks.

-Malicious proxies.

-DNS spoofing (leading users to clone websites).

Effects: Hijacking login details and transaction data online.

E. Card-Not-Present Fraud:

Definition: Transactions processed using stolen credit or debit card numbers that don’t necessarily need physical possession of the card.

Means:

-Data breaches.

-Obtaining (purchasing stolen card information).

-Card not present transactions.

-Challenges: Difficult to track and trace because there is no need for physical card verification.

F. Authorized Push Payment (APP) Fraud:

Definition: Scheming individuals into sending payments to the fraudster’s account through social engineering.

Types:

-Impersonation scams (acting as legitimate organizations).

-Investment scams.

-Romance scams.

Vulnerability: Trust and consent to authorize payments in the victim’s name.

G. Insider Threats:

Definition: Insider or contract employee frauds who have access to confidential banking systems and customers’ information.

-Motivations: Revenge, financial gains, or spying.

-Impact: It can cause widespread data theft and losses in terms of millions of dollars.

II. Firm Security Measures:

Technological Defences. The war against internet bank fraud must begin with robust technological defenses with a multi-layer structure.

A. Strong Passwords and Multi-Factor Authentication

-Password Security: Have a solid, different password for every online banking account with upper- and lower-case letters, numbers, and special characters.

-Password Managers: Utilize established password managers to make strong passwords and store them.

-MFA-Multi-Factor Authentication: Leverages MFA when it is supported in order to provide that a second authentication process (such as SMS Code, authenticator app, or biometric availability) should be activated in addition to the password when trying to log into an account.

-Implement fingerprint or facial recognition as an additional security feature.

B. Protect devices and software:

-Operating System and Software Updates: Regularly update your computer’s operating system, browser, and antivirus to implement the newest security patches.

-Antivirus/Anti-Malware: Install good antivirus and anti-malware and keep it up to date to identify and remove malicious threats.

-Firewall: Activate firewalls to block access from unauthorized users to your devices.

-Don’t Use Public Wi-Fi: Don’t even attempt to attempt online banking while on public Wi-Fi networks since those are usually unsecured by and large. Utilize a virtual private network (VPN) to provide security against potential unwanted access into information.

-Secure Your Home Network: Secure your home Wi-Fi with a solid password and encrypting with WPA2 or WPA3.

C. Browser Security:

Employ known browsers that are updated in standard cycles; i.e., Safari, Firefox, and Chrome.

-Pop-Up Blockers: Prevent malicious pop-ups.

-Check for Secure Connections: Look for the padlock which will be shown in the URL address bar to judge whether the connection is secure, and also ensure that the address URLs of web sites begin with “https://”.

-Empty Browser Cache and Cookies: Clear your browser cache and cookies occasionally as they hold data that might be exploited.

D. Email Security:

-Email filtering: Use email filtering to block spam or phishing emails.

-Don’t Click on Links in Emails Do not click on any link or open any attachment in the emails coming from an unknown source or from unidentified sources.

-Verification of Sender Address: Strict sender address verification to make sure that sender addresses are good enough to establish authenticity.

-Reporting Phishing Emails: Report phishing emails to your bank and email provider.

E. Mobile Banking Security

-Download Apps only from Official App Stores: Download mobile banking applications from the official app stores like Google Play or Apple App Store only.

-Enable Lock: High screen lock on your cell phone.

-Update Your Apps: Mobile banking apps must be updated periodically to plug the loopholes in security.

-No Jailbreak or Root: Don’t jailbreak or root your phone; it will make your phone vulnerable.

-Mobile AntiVirus: Mobile anti-virus software can be utilized.

Bank Security Characteristics:

-Transaction Alerts: Obtain a notification for any transaction done on your account with a transaction alert.

-Control Audit: An audit of your account monitoring at regular intervals for fraudulent transaction activities.

-Virtual Keyboard: Use the virtual keyboard to type in sensitive information so key loggers do not have a way of capturing your typing activity.

-One-Time Password (OTP): An additional means of securing transactions should be OTP.

-Card Controls: That can limit spending, restrict on particular types of transactions, and also freeze the card whenever needed.

III. Behavioral Changes-Human Factors Fraud Prevention

There is huge importance of the technology security; from there on there are huge human errors. Not just sufficient pressure, rather a person must also learn and practice secure online banking.

A. Awareness and Education 

-Keep Updating: Come back periodically to learn about more recent techniques and trends in online banking fraud.

-Teach Fam/ Friends: Just educate your family and friends to keep them safe.

-Attend Security Workshops: Learn security from security workshops or webinars.