Earning your money takes effort and dedication, so it's crucial to safeguard it from scammers and identity thieves. The Canadian Anti-Fraud Centre reported a staggering loss of over $104 million by nearly 40,000 Canadians to fraud in 2020.

Surprisingly, only $7 million was due to COVID-19-related scams. This alarming statistic shows criminals' fraud skills are improving. Protecting your finances requires proactiveness. In this article, we have given the different forms of financial fraud and various solutions to save money. These methods are essential in the age of financial scams.

Different Kinds of Financial Cybercrime

Cyber Intrusions

Cyber attackers often infiltrate bank and payment systems using various hacking techniques. They exploit weaknesses in these systems to gain unauthorized access, posing significant threats to financial security.

Ransomware Attacks

This method involves cybercriminals encrypting a victim's data after stealing it. The attackers then demand a ransom, threatening to delete or expose the information if not paid.

Stealing Company Login Details

Cyber attackers may acquire login information from employees of financial institutions. They use these stolen credentials to illicitly transfer funds illicitly, posing a grave threat to company security.

Selling Stolen Data

Hackers often target companies to steal large volumes of user data, including emails and passwords. They then sell this sensitive information, which can lead to further financial crimes.

Illegal Online Transactions

Cybercriminals utilize the dark net and money laundering methods to spend or transfer their illicit earnings, often using complex schemes to avoid detection.

Deceptive Scams

Scammers lure victims into buying or investing in fraudulent products. They commonly use social media and private communications like emails or phone calls to spread these scams.

Phishing Deceptions

Fraudsters impersonate legitimate companies to steal money or account information. Since phishing scams use fake emails, victims should report them immediately to avoid further harm.

Money Laundering Schemes

Cybercriminals buy and sell untraceable assets like online gift cards, in-game currencies, and cryptocurrencies to launder money. These transactions sometimes involve unsuspecting consumers.

Malicious Software Threats

Cybercriminals also use malware. It helps steal financial data and commit other crimes when installed on devices.

Cryptocurrency Scams

Scams targeting cryptocurrency investors and trading platforms are increasing. Some cybercriminals prefer cryptocurrency because it's easy to move and hard to trace.

Here are some ways through which you can protect yourself against cybercrime:

Creating Strong Passwords for Account Security

Passwords should be complex to guess to protect financial accounts. Instead of a simple password, choose one with letters, numbers, and symbols. Many online services now display password strength when you set it up.

They may even require a strong password. This discourages easy-to-guess passwords and prevents phishing. Report the scam if you suspect a password breach.

Adding Two-Factor Authentication

2-factor authentication (2FA) significantly improves account security. You must confirm login attempts from your phone or email with this setting. So even if someone gets your password, they can't access your account without this second verification.

Almost all online services offer 2FA, some optional, some mandatory. Use 2FA to protect your accounts from phishing and fake email attacks. Always report suspicious account activity as a scam.

Update Your Devices and Software

Cyberattacks can be avoided by updating devices and software. Mobile, tablet, and computer system updates provide the latest security features. Also important is updating your browser regularly.

Both desktops and laptops need a virus scanner and anti-malware updates. Many systems download critical security patches automatically. These updates are essential to avoid phishing and fake email threats. If your system's performance or security alerts change, report a scam.

Exercise Caution with Email Attachments and Links

Maintaining vigilance when handling emails, especially those from unknown senders is crucial. Often, fake emails are easily recognizable, yet some phishing scams cleverly disguise themselves.

A 2020 Deloitte study shows that 91% of cyberattacks start with email phishing. Although many email services filter out report a scam emails into the spam folder, some might slip through.

Choosing Reliable Cybersecurity Software

In the realm of cybersecurity, opting for reputable software is critical. Brands like Avast and McAfee, often featured in trusted sources like Forbes, are reliable.

Remember, effective cybersecurity doesn't have to be costly; many free options are available. However, download these apps from credible sources to avoid falling prey to fake email scams or phishing attempts.

Stay Safe on Public Wi-Fi Networks

Be cautious when using public Wi-Fi, as these networks can be vulnerable to security threats. Attackers might set up fake Wi-Fi hotspots or compromise legitimate ones to intercept or alter your data.

This is particularly risky for sensitive activities like online banking. It's best to use your Wi-Fi, especially at home, for critical or to stay safe. Public networks, though convenient, are not always secure. Even trusted public Wi-Fi spots can be risky, so limit your use of them for significant financial dealings or sharing personal information.

Regular Data Backups

Backing up your data regularly is a crucial step in protecting yourself online. It safeguards against various cyber threats, including identity theft and ransomware attacks. Having a backup means you can restore your information if it's ever compromised or held hostage by ransomware.

Backing up your data doesn't just protect your files; it also gives you evidence to challenge any cases of identity fraud. It ensures that you can quickly recover and maintain access to your information, reducing the impact of potential cyberattacks.

Guidelines for Reporting Financial Crime

Report financial cybercrimes like phishing scams and fake email schemes to the authorities immediately. This helps catch scammers and prevent others from falling for them.

Contact the US FBI's Internet Crime Complaint Center (IC3). They handle various online frauds and can help you file a complaint.

UK residents should contact Action Fraud. The City of London Police and the National Fraud Intelligence Bureau run this organization. They help victims of scams and fraud.

EU residents should check Europol's reporting websites. So your complaint reaches the proper local authority, this list details how to report a scam in each EU country.

In Australia, the government's ReportCyber page is for reporting cybercrimes like phishing and fake email fraud. This platform collects and analyzes reports to fight cybercriminals.