Cyber-Enabled Fraud and Money Laundering: Current Trends and Threats

Abstract

Cyber-enabled fraud represent illegal activities by which fraudsters use digital tools such as online platforms, internet, e-mail, mobile telephony to obtain sensitive data, money or access to different systems. The money obtained from fraud are laundered via different channels. In this article are analyzed the current trends of cyber-enabled fraud, the ways how the money obtained from fraud are laundered and how to protect the customers in order not to become victims of fraudulent activity. The author analyzes the most frequent types of fraud: phishing, social engineering, card frauds, online transactions frauds, crypto investments scams, online shopping fraud and preventive measures necessary to be applied by financial institutions to protect their customers. In the article are highilighted the role of developing robust internal controls combined with educational programs for customers to prevent cyber enabled frauds. UDC: 343.37:004.056; JEL: K42, G18, M42