Account takeover
Account takeover is a type of fraud where criminals gain unauthorised access to a customer’s account, typically through phishing scams, social engineering, or various forms of hacking to trick the account holder into providing sensitive information.
Once a criminal has access to an account, they can steal funds, make unauthorised transactions, or change the account details to lock the legitimate owner out of their account, causing significant financial losses.
Preventative measures include implementing strong authentication measures and security protocols such as multi-factor authentication, monitoring for suspicious login activity, educating customers, and having a response plan and a refined procedure in place for notifying affected customers and law enforcement agencies.
Cyber fraud
Cyber fraud refers to any fraudulent activity that takes place online and typically involves using the internet or technology to deceive individuals and organisations into providing sensitive information.
It includes phishing scams, identity theft, hacking, and malware attacks. Cyber fraud can be committed by individuals or organised groups who target vulnerable entities lacking adequate security measures.
Examples include email scams requesting, fake websites, and ransomware attacks, leading to financial loss, reputational harm, and legal consequences.
To prevent cyber fraud, keep software up to date, use strong and unique passwords, be wary of suspicious emails and messages, use two-factor authentication and keep sensitive information private.
CEO email fraud
CEO email fraud, also known as business email compromise, is a type of cyber fraud where criminals impersonate a CEO or another high-level executive to trick employees and partners into transferring funds or sensitive information, causing significant financial losses and reputational damage.
The fraudster creates an email address similar to the targeted executive’s by slightly altering the domain name, then requests urgent payment or transfer from the finance or accounting department, and uses various tactics to create a sense of urgency or authority by claiming the requested funds are needed to close a critical deal. The funds will then be sent to the criminal’s account through a series of intermediaries or shell accounts. These are often difficult to trace.
To prevent this fraud, payment firms should implement strict authentication protocols for all financial transactions including multiple levels of approval, educate employees, conduct regular security audits, and have a response plan in place for recovery of stolen funds and notifying law enforcement.