How Sophisticated Fintech Upgrades Can Lead To Financial Scams And Trading Fraud

Republished By Plato

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For the most part, fintech
innovations are enhancing the efficiency, usability, and security of the
financial sector.

However, it wouldn’t be true to say
that new technologies are creating a perfect world, and – as ever – there are
those with bad intentions who can leverage fintech developments for their own
nefarious gain.

Data breaches, identity theft, and
scams continue, and while fintech has slammed the door on some of those
potential avenues for hackers to explore, new loopholes are constantly emerging.

So how do you minimize your risk of
being scammed? In this article, we take a peek at techniques you can deploy to
ensure your payment apps are hack-proof and methods of how to spot forex fraud in your trading activity.

In 2021, online fraud attempts were up a staggering 25%. Don’t add to the statistic
– follow these simple rules instead.

Locking down

You may be sick of the word ‘lockdown’
given the past couple of years’ events, but this is what you need to do with
your computers and mobile devices when sending payments online.

Whether it’s a banking app or a
trading platform, there are ways that you can secure your device against scams
and fraud. Like roots breaking through the pavement, hackers need a crack into
which they can squeeze – usually, that will be in learning the login details to
your account.

Two-factor authentication is the
easiest way to combat a hack. This requires the user, i.e., you, to log in
using a username and password but adds a second layer of security – often a
passcode sent to you via text message or email. Without this code, you simply
cannot log in, which halts many forms of online fraud in their tracks from the
get-go.

Although generally less of an
issue, hackers can also penetrate Bluetooth connections to steal data. You
should consider turning off Bluetooth when you aren’t using it and only use
this method for transferring payments as a last resort.

Update your apps

It’s always tempting to ignore the
latest downloadable updates to your app, isn’t it?

The problem with that is that,
occasionally, the updates are to repair weaknesses in an app that can otherwise
be exploited by fraudsters.

Faults in apps can become public
knowledge, and hackers are ruthless in diving into these vulnerabilities.
Updating your apps can help to ensure you don’t become their latest victim.

A similar train of thought exists
with your smartphone or tablet’s operating system. Again, the temptation is to
turn a blind eye to any available OS updates. Still, these may also fight off
known threats that could otherwise potentially see your device’s security
compromised.

Every cent counts

Hacks that revolve around online
trading tend to be all or nothing – that’s why vigilance is essential,
particularly in securing your login credentials. There have been instances of data breaches at trading brokers in recent times.

But our personal bank accounts can
be hacked without our knowledge, and days, weeks, and even months can pass
before we notice the issue.

Some fraudsters are clever and only
make tiny payments from your compromised account – hoping to avoid detection by
assuming you won’t check your account statements with absolute diligence.

So always check every single
transaction that passes through your bank account via any payment method – you
might just spot a pattern that unearths a hacker who has already slipped past
your defenses.