We often write about the prevailing risks and cyber threats faced by the ordinary man. These reminders are necessary as cyber criminals evolve and become increasingly cunning in their deceptive methods to mislead and profit from unsuspecting victims.

During the global COVID-19 pandemic there was a spike in cyber-attacks as people worked remotely from home and spent far more time online than usual, performing day-to-day tasks such as shopping, banking, and socialising.

Vodacom reported a 40% jump in data usage during the lockdown. Fraudsters used this extraordinary time to escalate their attacks.

The financial impact of cybercrime is substantial. It is estimated that the world economy loses close to $500 billion every year to cybercrime.

In 2018, the South African Banking Risk Information Centre, a non-profit company formed by the four major banks to combat organised bank-related crimes, reported that cybercrime in the financial sector accounted for losses amounting to R2.2 billion in South Africa every year.

There are several scams that are often utilised by cybercriminals to elicit confidential information or payment. These include:

• Identity theft:where criminals obtain information about you to convince a bank or a customer service representative that they are you.

• Phishing:where criminals attempt to trick unsuspecting individuals into clicking on a malicious URL link or e-mail attachment to steal login details which can then be used to gain unauthorised access to the victims' financial accounts.

• Ransomware:where a hacker encrypts files on your computer. The only way to get the files back is to pay the hijacker in crypto currency, like Bitcoin.

• Spoof emails: attempt to trick individuals into revealing their personal information through bogus emails.

It is important that individuals familiarise themselves with these possible threats and remain vigilant whilst working online. Individuals are encouraged to do the following as advised by Dialdirect:

• Read about cybercrime. The more you know, the more likely you are to spot a con.
• Do not use your social media profiles to log in to other accounts.
• Use strong passwords, with a variety of upper case and lower-case letters, symbols, and numbers. Never write them down where other people can see them. You should also try to change them occasionally.
• Only use reputable online shopping sites - look at the URL of the website, if it begins with “https” instead of “http” it means the site is secure. Also check with friends if they have heard of it or used it before.
• Be extra cautious when using Wi-Fi hotspots. Some scammers falsify popular hotspots.
• Do not click on random links.
• Use good quality security software and a firewall on your computer and update them regularly.
• To protect against identity theft, take care not to reveal too much about yourself on social media networks.
• Back-up the data on your computer daily.
• Do not respond to emails claiming that you have won a prize or inherited money.
• Keep an eye on your monthly statements to identify unusual/unauthorised transactions or behaviours.

Source: https://saiia.org.za/research/cybercrime-and-covid-19-a-concern-for-financial-stability-during-the-pandemic/

Aneesa Khan | Finance Manager