BANKING FRAUD

PRESENTATION

SUMITTED BY: ASHWIN UDAYAKUMAR

COURSE: M.Sc. / M.Com FORENSIC ACCOUNTING &

FINANCIAL INVESTIGATION.

SUBMITTED TO: ANSHU SINGH

 INTRODUCTION:

 Modern advancements in the banking sector

have resulted in a rapid increase in volume,
as well as the ease with which financial

transactions are being carried out.

 Today almost all financial transactions

are being done via digital banking banking.

 However these developments comes

with its own set of limitations i.e.

increase in the number and types of internet

banking frauds taking place.

 REASON BEHIND INCREASE IN DIGITAL
FRAUD:
 Change in e-commerce landscape: Purchasing of goods and services
moving over to online platforms or marketplaces.
 Increase in the use of online payments services: The increasing use
of P2P and e-wallet apps has increased the chances of frauds taking
place.
 Increase in digital banking services: The demand of consumers for
more online and mobile services from financial institutions resulting in
banks going digital.
 More sophisticated fraud tactics: Due to an increasing number of
data breaches over recent years, fraudsters can more easily access PII
(personally identifiable information) and use it against consumers
 Unclear legal jurisdiction of cross-border fraud: Most large sum
transactions encompass multiple countries. Hence it is difficult for
individual jurisdictions to properly monitor for fraud risk.
 Technological advancements resulting in new sophisticated frauds:
The technologies that companies and banks to innovate, introduce new
products and services are also being adopted by fraudsters.
TYPES OF FRAUDS:
 WHATSAPP BANKING FRAUD:
• WhatsApp banking services, are used by
banks provide alert notifications from your
bank through WhatsApp instead of getting
them as SMS.

• The familiarity and simplicity of the

WhatsApp messaging makes it easy for
customers to interact with the bank and get
answers to queries in a seamless manner.
• However Whatsapp is being exploited by
scammers on the platform. Fraudsters send
text messages to Whatsapp users in order to
extract sensitive information such as bank
account details.
CONTD.

• WhatsApp scam makes use of working external links on the

platform. The scam, named "Rediroff.ru" is being circulated by
WhatsApp users themselves. The fraud involves the circulation of
the above mentioned WhatsApp link . As soon as a user opens the
link, they are redirected a web page which tempts them by
promising an assured gift or informing them about the prize of a
giveaway.
• The user opens the web page and fills a survey sheet, the page
collects vital information concerning the user including their IP
address, name of the device and other personal details such as name,
age, address, bank account details which can be then used to scam
the user.
 SIM SWAPPING:
• SIM swapping is a form of digital
identity theft which works on social
engineering. It is often the second phase
of a fraud attack, SIM swapping happens
when fraudsters take control of a victim’s
mobile number and from there obtain
verification codes like OTPs and URNs
that give them unrestricted access to
protected accounts.
• Fraudsters take get access to replacement
SIM that is replaced through methods
such as reporting a handset lost or stolen,
placing requests for SIM replacement, or
producing fake documents to get a
duplicate SIM.
COTD

• In April 2018, Gregg Bennett, an entrepreneur in Bellevue,

Washington, noticed something odd happening across his email
account, after which his phone connectivity immediately zeroed out.
Fearing a hacking attempt, Bennett, unfortunately, could do little as
the fraudsters took control of his phone number via his SIM, therein
gaining access to Bennett’s Amazon, Evernote, Starbucks, and even
his Bitcoin account, whereby he lost 100 Bitcoin.
PROCESSES OF SIM SWAPPING:
 WHALING:
• A whaling scam or attack is a method
used by cyber fraudsters to masquerade
as a senior player at an organization and
directly target senior officials of an
organization, with the aim of stealing
money or sensitive information or
gaining access to their computer systems
to carryout further criminal activities.
• These are mainly targeted towards
higher officials hence it is also known as
CEO fraud, whaling is similar to
phishing in that it uses methods such as
email and website spoofing to trick a
target into performing specific actions,
such as revealing sensitive data or
transferring money.
COTD.

• The major point of difference between whaling and spear-phishing

is that fraudulent communications is seem like it has come from a
senior officials. These attacks can be made all the more believable
when cybercriminals use significant research that utilizes openly
available resources such as social media to come up with a tailor
made approach for those target individuals.
• This could include an email that seems to be from a senior manager
and could include a reference to something that an attacker may
have got from online sources.
• The sender's email address typically looks like it's from a believable
source and may contain corporate logos or links to a fraudulent
website that has also been designed to look legitimate. Because a
whale or senior officials level of trust and access within an
organization tends to be high. Hence the attacker tends to put more
effort into the finer details in order to pull of a near perfect scam.
DIFFERENCE BETWEEN WHALING AND SPEAR PISHING:
COTD

• In 2016, the payroll department at Snapchat received a whaling

email seemingly sent from the CEO asking for employee payroll
information. Last year, toy giant Mattel fell victim to a whaling
attack after a top finance executive received an email requesting a
money transfer from a fraudster impersonating the new CEO. The
company almost lost $3 million as a result.
 CONCLUSION:

Online payments have made it easy to make financial transaction

anytime from anywhere in just a click. However it comes with its own
set of problems and risks. Whether you are regular with online banking
or feel skeptical about it, some safety measures while making a digital
transaction essential. Basic awareness about online scams can help one
avert a financial tragedy.
THANK YOU.