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June 15, 2017 Fraud Prevention Elliott

Digital Banking Fraud – What You Need to Know

A business owner sued his financial institution after hackers submitted a substantial fraudulent wire transfer from his account to an international account. He thought the bank should reimburse the funds since they processed the transaction; however, upon investigation it was determined that his computer was infected with a virus that enabled fraudsters to retrieve his online banking credentials. He claimed that the bank was negligent because they had not informed him that this particular malware was a risk. The courts ruled in favor of the financial institution, stating that the customer had neglected to take the necessary basic precautions to protect his information.

With scams like the one cited above becoming more and more prevalent, consumer education is of utmost importance when it comes to preventing fraud. Are you aware of the risks and how to prevent yourself from becoming a victim?

Malware & Keylogging

Keylogging is a method by which fraudsters record your actual keystrokes and mouse clicks. Keyloggers are software programs that target your computer’s operating system and are installed via a virus. These can be particularly dangerous, as the fraudster is able to capture your user ID and password in addition to anything else you have typed. If you are like many other end-users and have the credentials for several different accounts online, you’ve essentially granted the fraudster access to your other online accounts. What’s worse is since they now have your login credentials, they appear to be a valid user.

Here are some crucial things you can do to prevent yourself from being a victim of keylogging:
  • Use Anti-Virus Software. This is the most important thing you can do to protect your computer from viruses. There are many options on the market today – some at a cost, while others are free. If you opt to use a free version, be sure to research the company to confirm it is being offered by a reputable business.
  • Keep your Operating System up-to-date with the latest security patches.
  • Workers suggests that online users install a software called Trusteer Rapport that provides online transaction protection and protection from online identity theft for consumers. You can use it to protect your web browser sessions with any website that contains private or personal information. Visit our website for additional information and to download.