How sophisticated fintech upgrades can lead to financial scams and trading fraud

For the most part, fintech innovations are enhancing the efficiency, usability, and security of the financial sector.

However, it wouldn't be true to say that new technologies are creating a perfect world, and – as ever – there are those with bad intentions who can leverage fintech developments for their own nefarious gain.

Data breaches, identity theft, and scams continue, and while fintech has slammed the door on some of those potential avenues for hackers to explore, new loopholes are constantly emerging.

So how do you minimize your risk of being scammed? In this article, we take a peek at techniques you can deploy to ensure your payment apps are hack-proof and methods of how to spot forex fraud in your trading activity.

In 2021, online fraud attempts were up a staggering 25%. Don't add to the statistic – follow these simple rules instead.

Locking down

You may be sick of the word 'lockdown' given the past couple of years' events, but this is what you need to do with your computers and mobile devices when sending payments online.

Whether it's a banking app or a trading platform, there are ways that you can secure your device against scams and fraud. Like roots breaking through the pavement, hackers need a crack into which they can squeeze – usually, that will be in learning the login details to your account.

Two-factor authentication is the easiest way to combat a hack. This requires the user, i.e., you, to log in using a username and password but adds a second layer of security – often a passcode sent to you via text message or email. Without this code, you simply cannot log in, which halts many forms of online fraud in their tracks from the get-go.

Although generally less of an issue, hackers can also penetrate Bluetooth connections to steal data. You should consider turning off Bluetooth when you aren't using it and only use this method for transferring payments as a last resort.

Update your apps

It's always tempting to ignore the latest downloadable updates to your app, isn't it?

The problem with that is that, occasionally, the updates are to repair weaknesses in an app that can otherwise be exploited by fraudsters.

Faults in apps can become public knowledge, and hackers are ruthless in diving into these vulnerabilities. Updating your apps can help to ensure you don't become their latest victim.

A similar train of thought exists with your smartphone or tablet's operating system. Again, the temptation is to turn a blind eye to any available OS updates. Still, these may also fight off known threats that could otherwise potentially see your device's security compromised.

Every cent counts

Hacks that revolve around online trading tend to be all or nothing – that's why vigilance is essential, particularly in securing your login credentials. There have been instances of data breaches at trading brokers in recent times.

But our personal bank accounts can be hacked without our knowledge, and days, weeks, and even months can pass before we notice the issue.

Some fraudsters are clever and only make tiny payments from your compromised account – hoping to avoid detection by assuming you won't check your account statements with absolute diligence.

So always check every single transaction that passes through your bank account via any payment method – you might just spot a pattern that unearths a hacker who has already slipped past your defenses.