Wire Fraud: An Overview
Wire fraud is a type of financial crime in which criminals use wire transfers to steal money from victims. In many cases, the victim’s account information is compromised through hacking or phishing attacks and then used to initiate fraudulent wire transfers out of their accounts without their consent. Wire fraud has become increasingly prevalent as more people make financial transactions online, including cryptocurrency transactions.
How Does Wire Fraud Work?
In most cases, wire fraud begins with an email or text message containing malicious software (malware) that allows the hacker access to the victim’s computer or device. Once they gain access, they can monitor all activity on the device and will eventually be able to see any login credentials for bank accounts associated with it. They may also acquire personal data such as Social Security numbers, birthdates and addresses that can be used to open new accounts in the victim’s name. The hacker may then transfer funds directly from these accounts into a separate one controlled by them, bypassing any security measures in place at either end of the transaction.
How Can I Protect Myself From Wire Fraud?
Fortunately there are several steps you can take to protect yourself from becoming a victim of wire fraud when making cryptocurrency payments online:
• Be aware of phishing scams – Phishers often send emails pretending to be legitimate companies asking for your information; never click on links contained within suspicious emails or respond with personal information if asked via email/text message without verifying who sent it first!
• Enable two-factor authentication (2FA) – 2FA requires users entering passwords twice using two different methods such as SMS verification codes before being allowed access; this adds an extra layer of protection against potential hackers gaining access to your account information • Regularly update your passwords – Make sure you keep track of all passwords associated with your online payments and update them regularly so that no one else can gain access
• Use secure payment systems – When making cryptocurrency payments online always double check that you are dealing with reputable providers who have strong encryption protocols in place; look out for ‘https://’ rather than just ‘http://’ URLs too!
