Digital banking has made our lives more convenient and hassle-free. With a few clicks on our smartphones, we can pay bills, transfer money, and perform various other banking transactions. However, with the increasing use of digital banking, the cases of digital banking frauds are also rising at an alarming rate. In this article, we will discuss the increasing trend in digital banking frauds and how you can protect yourself from becoming a victim.
What are Digital Banking Frauds?
Digital banking frauds are the fraudulent activities that take place in the digital banking world. These frauds include stealing someone’s banking information, accessing someone’s banking account without authorization, and performing unauthorized transactions. Digital banking frauds can lead to financial losses and can also compromise your personal information.
The Increasing Trend in Digital Banking Frauds
The number of digital banking frauds is increasing day by day. According to a report by the Federal Reserve System, the number of fraudulent transactions in mobile banking has increased by 24% from 2018 to 2019. Another report by the Federal Trade Commission (FTC) states that the number of fraud reports related to online and mobile banking has increased by 50% from 2019 to 2020.
The COVID-19 pandemic has also contributed to the increase in digital banking frauds. With the lockdowns and social distancing measures in place, more and more people have shifted to digital banking. This has given fraudsters more opportunities to carry out their fraudulent activities.
Types of Digital Banking Frauds
There are various types of digital banking frauds. Some of the most common ones are:
Phishing Scams
Phishing scams involve fraudsters sending emails or text messages that appear to be from a legitimate source, such as a bank. These messages usually contain a link that takes the victim to a fake website that looks like the legitimate one. The victim is then asked to enter their banking information, which is then stolen by the fraudster.
Malware Attacks
Malware attacks involve fraudsters sending malicious software to the victim’s device, such as a smartphone or computer. The malware can then steal the victim’s banking information and other personal information.
Identity Theft
Identity theft involves fraudsters stealing the victim’s personal information, such as their name, address, and social security number. The fraudster can then use this information to open a bank account in the victim’s name and carry out fraudulent activities.
ATM Skimming
ATM skimming involves fraudsters installing a device on an ATM machine that can steal the victim’s banking information when they use the ATM.
How to Protect Yourself from Digital Banking Frauds
Here are some tips that can help you protect yourself from digital banking frauds:
Use Strong Passwords
Always use strong passwords for your banking accounts. A strong password should be at least 8 characters long and should include a combination of upper and lower case letters, numbers, and special characters.
Use Two-Factor Authentication
Enable two-factor authentication for your banking accounts. Two-factor authentication adds an extra layer of security by requiring you to enter a code sent to your phone or email in addition to your password.
Be Wary of Suspicious Emails and Text Messages
Be wary of emails and text messages that ask you to click on a link or enter your banking information. Always verify the authenticity of the message before clicking on any links or entering any information.
Keep Your Devices Updated
Keep your devices, such as your smartphone and computer, updated with the latest security patches and software updates. This can help protect your devices from malware attacks.
Monitor Your Bank Account Regularly
Monitor your bank account regularly for any suspicious transactions. If you notice any unauthorized transactions, report them to your bank immediately.
Conclusion
The increasing trend in digital banking frauds is a cause for concern. However, by following the tips mentioned in this article, you can protect yourself from becoming a victim. Remember to always stay vigilant and keep your banking information safe.