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As the world evolves, so do the rate and frequency of our monetary transactions. Securing these transactions with diligence in the rapidly digital environment is more critical than ever. The following are frequent scam schemes to look out for:
Theft of Credentials — In these cases, the thief employs illicit methods to obtain information that uniquely defines a user. Using the widespread tactic of “phishing,” the hacker deceives the victim into divulging sensitive information. This could include an ID number, social security number, or even verification answers for resetting passwords.
Wire Fraud – This uses multiple channels of modern communication, such as the telephone, email, fax, and social media. They employ these strategies to persuade the bank that they’re obtaining large amounts of cash from a legitimate source while posing as someone else.
Account Takeover – Commonly known as identity theft, account takeover is a highly effective extension of credential theft. With so many firms storing their data on cloud-based platforms, it is easier now than ever for a single access point to provide total control. The greater our reliance on online services, the greater our vulnerability.
Accounting Fraud – Accounting fraud occurs in the business loan industry. With no intention of repaying the debt, the criminal will ask for a loan using fabricated bank statements using a fictitious firm. Once they obtain the money, they can simply vanish while the bank suffers the loss.
Money Laundering – Any funds obtained fraudulently or illegally must be “cleaned” or legitimized through money laundering. This procedure involves sending the currency through official channels and verifying it from multiple sources. Banks typically accomplish this because they can transfer enormous amounts of cash from one personal profile to another.