Digitalization has come with a plethora of benefits, such as quick payments and managing money directly from your phone, but also with corresponding risks. Most often, you risk losing control over your bank account and the money in it if you are the victim to a scam or malware attack or simply get caught in the trap of fake news.
Another risk is identity theft, through which you can lose not only the money in your account but also your identity. It can be used to engage in other financial activities and beyond (for example, sending messages to your loved ones on your behalf) without your knowledge.
"It's like someone knocking on your door and telling you they're from the homeowners' association in your building and that you need to update your details. But the building manager is a bit sick and can't come today. And you, in good faith, give them a copy of your ID, your card PIN, and other details," explains Dragoș Stanca, entrepreneur
The truth is that fraud attempts are not something new, but what changes today is the technological advancement and the fact that the digital space provides malicious actors with many more tools.
There's no need to be scared, just make sure you are informed, when navigating and interacting online.
How you can be tricked online
Phishing is a very common type of scam where you're asked for personal data or confidential information (such as card details, app passwords, email, etc).
Later, using this information, those who obtain it can get their hands on money from your account by transferring it to their accounts.
Many such messages are received via email, but you can also receive them via SMS, social media, or phone calls. Messages become even more believable if you receive them on multiple communication channels, right? Because, yes, they can be personalized and sent simultaneously through multiple communication channels. This phenomenon is called Spear Phishing or Whaling.
What you should do to avoid being tricked online
Always read carefully the email addresses and names of those from whom you receive emails or messages that you wouldn't normally receive.
Check the URL to see if it's your bank's address or the institution you intend to access.
Another thing you can do is to establish a codeword that you use when you have the slightest suspicion. With loved ones, for example, you can set a keyword that you always use when talking about money over the phone. This way, you can tell if it's a voice simulated by artificial intelligence or if it's your son, for example, on the phone.
Why should you be careful with the advice above? Precisely because one of the most common scam attacks involves processing the voice of a loved one who calls you to ask for money because "something happened." This type of fraud increasingly replaces the predecessor where, through a phone call, you were notified that a relative had an accident and urgently needs money.
From job offers to the "Nigerian prince"
- The more informed you are, the better protected you are. That's why you need to know the most common types of scam attacks so you can recognize them when you encounter them. These include:
- Donating money to causes that don't actually exist (associations and charitable causes, business ideas, innovative projects)
- Renting apartments that don't actually exist
- Offer for a fake antivirus program
- Invitation to participate in a fake MLM (multi-level marketing) scheme
- The "Nigerian prince" scam - where someone poses as an aristocratic, trustworthy person who has inherited significant sums of money and wants you to be their co-heir after donating a sum of money Offer of a work-from-home job in addition to your current job for which you have to pay some fees
Next level: Think twice before clicking
Criminals cannot access your money unless you allow them to. And, usually, this happens in a moment of carelessness: it takes just one click.
Such behavior is called "Malware" and is an attack where users receive an email containing a corrupted file attachment.
The user is tricked into downloading and opening the attachment, which may be disguised as a common file (a CV, a PPT presentation, a document, a photo). In reality, the file contains a hidden program that corrupts the software where it is downloaded.
Sometimes emails contain subject messages like "Extremely Important Message" or messages that can alert you, such as "Error," "Test," or "Mail Delivery System," etc.
If you access the link, you may unintentionally allow programs like Any Desk to reach your device and steal confidential data, passwords, or banking credentials.
Of course, there are several types of Malware, from viruses (which self-replicate and contaminate systems), to Trojans (which mimic software you already know well - you think you're downloading an application but you're actually downloading something that looks very similar, but steals data from your card), to spyware (which spies) or ransomware.
Ransomware is an attack where, by opening an attachment or accessing a link received through a message or pop-up banner, a program is installed on the victim's computer. The program will completely take control of the data on the affected device. Those who initiated the attack will contact you and request, as an unlock fee, a sum of money to be transferred to a certain account. If you refuse to make the payment as instructed, those requesting the fee threaten the risk of losing all data on the affected device.
However, be careful! There is no guarantee that simply paying the money will result in total recovery of the money and the phenomenon won't repeat itself in a few weeks. In fact, most of the time, payment is not the solution, but emergency blocking of cards and accounts at the bank, followed by contacting the authorities.
Of course, the best solution is not to click on any unsolicited link or received out of nowhere, even from acquaintances.
And yet, how do you keep your money safe? The solution is by no means to isolate yourself from today's technological advancement but to be skeptical, without falling into extremes.
Here are some tips to keep in mind:
- Never disclose your personal data.
- Whenever possible, always use two-step authentication for any email platform or social media.
- Do not respond to messages or emails asking you for personal information related to accounts, cards, data by unauthorized persons.
- Do not use the same password for multiple accounts.
- Do not store passwords and other personal information on your computer/phone.
- Use specialized programs - antivirus - to protect your computer, phone, tablet.
- Pay attention to Fake News and misinformation: Be skeptical, always ask questions, read everything twice, especially if you receive messages by email or SMS.
- Don't believe stories that are too good to be true.
- Always rely on real and verified sources of information.
- Immediately call the bank if you receive messages asking for your account details: account number, card number, holder, CVC, username for online applications, passwords, even if the request seems to come directly from the bank.
Ultimately, information is the most powerful weapon we have against the risks that new technologies bring. Get informed as accurately as possible and make sure not only to save, borrow advantageously, and invest but also to protect your money accordingly.