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Combating cybercrime and online fraud: are your finances
protected?
With instances of online fraud totalling 4.7 million in the year to September 2017, it is vital that you safeguard your
business and personal finances. From phishing to identity fraud, we examine some of the most common types of
cybercrime, and consider ways in which you can minimise the risk.
Types of cybercrime and online fraud
Every year, millions of businesses and individuals are caught out
by a range of different types of online fraud, some of which are
outlined below.
Phishing
Phishing refers to the practice whereby a criminal poses as a
recognisable company or brand (including major banks, HMRC
and telecommunication companies), and contacts an individual or
a business, requesting them to provide personal information or
payments, or to allow them remote access to their computer.
Victims are often contacted via telephone, email or text message,
and are urged to supply sensitive data, including banking and
credit card information and account passwords. Criminals then
take advantage of this, or take the opportunity to install malicious
software onto the victim’s computer.
Action points:
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Exercise caution when it comes to responding to phone
calls, text messages or emails asking you to make a payment,
or log in to an online account. The government, banking
institutions and large organisations will never email you to
request access to your account, or to request that you send
them personal information
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Be wary of clicking on links within emails – if in doubt, visit
the company’s official website separately and log in to your
account from there.
Mandate fraud
Mandate fraud involves a criminal posing as a banking organisation
or other financial body and requesting their victim to change a direct
debit, standing order or bank transfer mandate.
Action points:
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If you notice unusual activity on your account, inform your
bank immediately
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Ensure that bills and other financial documents are stored
safely and in a secure manner to prevent them from falling
into the wrong hands.
Identity fraud
Identity fraud occurs when criminals garner sufficient personal data
on an individual to assume their identity. Most then open bank
accounts, order goods, obtain credit cards and take out contracts in
the victim’s name.
Action points:
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Be wary of emails claiming to be from your bank or finance
provider: never give out your account information or your
personal details. Your bank will never ask you for your PIN
number or account password
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Check any financial statements carefully – suspicious activity
should be reported to your bank.
Investment fraud and land banking scams
This type of fraud involves a criminal offering their victim the
opportunity to invest in a range of schemes or products which
typically tend to be of little value, or which do not actually exist.
The criminal’s aim is to make you ‘invest’ as much as possible, and
subsequently disappear with your funds.
Action points:
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Never give out your financial or personal information
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Ensure that you carry out thorough research into your
potential options before you decide to invest – avoid taking
up offers of investments on the spur of the moment. If you
are unsure about an offer, check with the Financial Conduct
Authority whether the seller’s activities are legitimate.
Ensuring that you have the basics covered is the first step to helping
to protect your business and personal finances. As a business
owner, it is also advisable to train your employees on the best
ways to deal with cybercrime and matters of fraud. Instances of
online crime or suspicious communications should be reported to
www.actionfraud.police.uk.
Taking appropriate action now will help to safeguard
your business and personal finances against the risk
of fraud.