Cyber fraud is a blanket term for any crime or deception that uses the internet, computers, or other digital technology to trick or manipulate victims into revealing sensitive information or sending money/assets for the purpose of financial gain.

Essentially, fraudsters carry out traditional fraud by using the cyber realm as their primary tool or medium.

Key Characteristics

• Digital Medium: Criminals commit crime using digital devices like computer, smartphone and communication networks like the internet, email and SMS.
• Deception/Trickery: It involves tricking the victim into voluntarily providing information, access, or money, often by exploiting human trust and psychology.
• Financial Gain: Fraudsters almost always pursue the ultimate goal of stealing money, property, assets, or information that they can monetize.

Common Forms of Cyber Fraud

Cyber fraud takes many forms, often blending technical attack methods with psychological manipulation:

Phishing

Sending deceptive emails, texts, calls that impersonate legitimate institutions (bank, Amazon, government agency) to steal login credentials and financial details.

Example: An email from “your bank” claiming your account is suspended. The email further ask you to click a link to “verify” your details on a fake website.

Vishing/Smishing

Vishing is voice phishing (phone calls), and Smishing is SMS phishing (text messages). Both are used to trick the victim into giving up personal information or OTPs (One-Time Passwords).

Example: A phone call claiming to be tech support. They insists you have a virus and needs remote access to your computer.

Ransomware Attacks

Type of malware that encrypts a victim’s files, making them unusable, and demands a ransom to restore access.

Example: A business finds that a hacker has locked all their internal documents. A pop-up demands a Bitcoin payment to decrypt them.

Business Email Compromise (BEC)

Highly targeted attacks where a scammer hacks or spoofs a company email account (often impersonating a CEO or a vendor) to trick an employee into making an unauthorized wire transfer.

Example: A finance department employee receives an urgent-looking email from the “CEO” instructing them to immediately wire a large sum of money to a new supplier’s account.

Identity Theft

By stealing and misusing an individual’s personal identifying information such as Social Security numbers, bank details, or passport copies fraudsters commit illegal activities, including opening new accounts or applying for loans.

Example: A scammer uses stolen credentials from a data breach to open a credit card in your name.

Online Shopping Scams

Creating fake e-commerce websites or classified ads to sell non-existent, counterfeit, or inferior goods, collecting payment without delivering the product.

Example: A professional-looking website sells a highly discounted, in-demand item, but disappears after you complete the payment.