Deepak Chandnani
The world, especially in financial services, has been talking of fraud for quite a while now. Banks and other entities communicate with customers to educate and warn them of threats with the aim to mitigate fraud. The entire world was once again awakened to the reality of the threats to its digital world when the ransomware attack by the name of Wannacry (aka WannaDecryptor and WannaCryptor 2.0) hit around 150 countries with one of the most malicious cyber attacks in recent times. Taking advantage of vulnerability in Microsoft Windows, it affected more than 200,000 machines, demanding 300 bitcoins from each user to give back access of his/her machine and data.
Fraudsters on lookout
With this attack, a few facts about digital attacks and fraud are clear to the world. Most importantly, fraudsters are always on the lookout for a loophole or a flaw that others did not notice, in order to take advantage of the system.
Global syndicates
Second, attacks of this kind or magnitude are rarely by an individual, but by an organised group, very often global syndicates. These attackers meticulously plan the entire modus operandi to ensure they are not traced easily. It takes considerable investments to stay ahead of fraudsters and cyber criminals at every step.
Types of attacks
Thirdly, there are different types of attacks that can be launched targeting personal and financial information which was assumed to be safe or invulnerable.
Fraud is getting more and more sophisticated every day. Fraudsters don’t just hide behind multiple proxies anymore. In a recent case in Mumbai, a businessman lost Rs 1.8 crore to a Nigerian gang of fraudsters, masquerading as seed traders. This time, the swindlers went one step ahead and a “representative” even met the victim in real. Imposters are now willing to take the risk of physically exposing themselves when they know the victim is likely to fall prey to such tactics. Hence, there is an ever-increasing need for people to be aware of fraud and know how to tackle such threats.
Risk management
Any institution or business that is privy to confidential data must have sophisticated fraud and risk management processes and tools and keep abreast of the latest fraud trends. For the layman, there are a number of small precautions one can take to safeguard information. A certain amount of cyber hygiene should be practised by everyone to reduce the chances of fraud:
For example, the traditional magnetic stripe cards are being phased out and replaced with chip-and-PIN cards across the board. These cards are more secure and encrypted, reducing the chances of fraud vis-à-vis magnetic stripe cards. If you have not yet changed your debit/credit card, ensure you request for one from your card issuer.
Digital transactions are safe and convenient, letting people pay without using cash. However, some degree of care and precaution is necessary to keep oneself safe from new threats emerging on a day-to-day basis.
The writer is CEO, Worldline South Asia and Middle-East. The views expressed in this article are his own
2
4
5
8