Over the past 20 years, the banking industry has witnessed a dramatic shift. It’s time to say goodbye to long lines at the bank, complicated procedures, and physical transactions. Our financial system has made a seamless transition to the digital age. When it comes to banking, new methods like RTGS and NEFT have evolved, as well as ECS and EFT. NET BANKING has taken the place of bank passbooks. E-cheques have replaced the physical checkbooks. Our ability to make use of new technology is accompanied by an increase in fraudsters’ ability to take advantage of us and our hard-earned money.
Nearly daily, ATM clonings, phishing or fraudulently encouraging clients to give their own information and then stealing money from the account are occurring. These scams still focus on the individual and have little impact on the economy as a whole. As white ants and tumours consume our economic institutions, we need to pay more attention to the systematic and coordinated scams perpetrated in the business sector with the active connivance of bank officials.
Due to AI’s rapid rise in popularity, we must be prepared to deal with the threat of system hacking, otherwise, the banking sector might go down the same path as Nokia. Nokia used to be among the most prestigious brands in the mobile phone industry, but they were slow to adapt to the rapid changes in the electronics industry and were soon overtaken by APPLE, Samsung, and a slew of Chinese mobile phone manufacturers, all of whom had far more advanced systems and user-friendly interfaces. Every indication leads to an increase in online banking fraud in the future years. Banks must deal with the rising threat proactively rather than merely as another revenue loss item on their books because it has already become such an endemic concern.
Hacker gangs and multinational criminal organisations are no longer the only ones responsible for attacks on internet banking. Nowadays, we don’t run into the brilliant ’80s hackers, the computer geniuses who wreaked havoc on the world’s largest financial institutions. To carry out assaults, bad actors may now use a wide range of tools and data breaches available on the dark web, from state-sponsored groups to well-funded cybercrime syndicates. Illegal activity committed online has a far lower chance of being detected and prosecuted than traditional forms of criminal activity. Online banking fraud is viewed as a way of life by those who have no criminal ties or expertise in the world of crime. Additionally, many of today’s new breed of cybercriminals do not view their actions as anything more than an extension of their favourite video game.
Furthermore, the internet world has created a clear area for crime to be perpetrated with minimal constraints, a location just outside justice’s grasp, where interior problems like morality and honesty have either muddled or vanished entirely. Indeed, the growth and business volume of internet banking have exploded in the last several years. Because of the increased activity, it is only logical that criminal activity would increase as well. But is this all there is to it? We need to learn more about the psychology of fraudsters if we’re going to get to the bottom of this problem and stop it from happening in the first place.
This is what pushes someone to commit online fraud, whether it’s from within or without. A person who decides to steal at some time in their life isn’t a criminal by nature; rather, they are a person who, for whatever reason, has made the choice to steal. In other cases, this pressure stems from an internal desire to retaliate, a desire to acquire what they consider their own, or a desire to respond in some way to a sense of injustice.
In order to avoid seeing themselves as swindlers, the individual who conducts the fraud goes through an internal mental process of justifying their actions. People driven to perpetrate fraud will always exist. It is impossible to eliminate the human nature that makes someone decide to commit a crime; to cross the line into illegality, for that matter. This does not imply that this triangular component cannot be altered. It’s impossible that this is the case at all. There are several ways to alter or alter human motivation.
It is possible to perpetrate fraud because of this feature. Online banking fraud is made feasible by a breach in security, a flaw in the system, or an unlocked door. Hackers can take advantage of issues in user identity verification or the systems in place to ensure it. To put it another way, there will always be people motivated to perpetrate fraud, and while we can influence some of them, we cannot influence all of them. People that are highly driven appear to be lured to online banking fraud as a means of achieving their objectives.