Dr Mohamed Hamad Al Kuwaiti*
Protecting financial information has become critically important in today’s digital age, as the risks of fraud and identity theft continue to rise, particularly with the widespread adoption of advanced technologies and artificial intelligence. These technologies have facilitated more sophisticated forms of identity theft, including financial fraud, as well as other types of cybercrime such as the theft of driver’s licence data, social security and tax information, medical identities, children’s identities and even digital identities, among others.
At present, cyberattacks represent a major threat to both individuals and organisations alike. Such attacks can lead to unauthorised access to information, data manipulation or deletion, ransom demands, or business disruption.
Cybercrimes range from identity theft and email and online fraud to banking fraud. The rapid digitisation of financial services has contributed to a surge in cybercrime, placing a responsibility on financial service providers to protect entrusted assets and safeguard their reputations, while customers themselves also bear responsibility for securing their financial safety.
These forms of cyber theft can result in significant financial losses and severe negative impacts on victims. Studies indicate that 73% of users have been affected by at least one data breach. Stolen information can be exploited to carry out unauthorised transactions, leading to direct financial losses, particularly amid the growing prevalence of online shopping, where credit card fraud has become a serious threat. Financial losses from fraudulent transactions have reached levels comparable to entire national economies. In addition, victims may incur further costs to recover their identities and funds, while also facing substantial psychological and financial stress.
To reduce the risk of falling victim to fraud or identity theft, individuals must adopt safer digital behaviours and follow sound cybersecurity practices. These include avoiding the storage of financial information on electronic devices, as the memory contents of computers and smartphones are highly valuable to cybercriminals. Accordingly, individuals should refrain from storing bank account numbers, passwords, credit card details, or any sensitive financial information on their devices.
Regular monitoring of account statements is also essential to enable early detection of suspicious activity. Individuals should routinely review bank and credit card statements to identify any unauthorised transactions. In addition, using secure payment methods helps mitigate risks within today’s digitised financial infrastructure. As digital payments continue to expand, the risk of financial fraud increases, with studies showing that more than 60% of financial attacks begin with the theft of login credentials. This underscores the importance of regularly reviewing privacy settings on personal accounts and digital platforms to ensure that sensitive information is not shared unintentionally.
Users should also delete untrusted applications, as such apps can serve as gateways for fraudsters to access personal data. Enabling two-factor authentication is equally critical, as it significantly enhances security and acts as a strong “protective barrier” against cyberattacks and impersonation attempts. Regularly updating software and operating systems is also vital, as security updates help close vulnerabilities that fraudsters may exploit. Moreover, individuals should avoid using public or free Wi-Fi networks when conducting financial transactions and refrain from entering sensitive information while connected to such networks.
In conclusion, despite the technological advancements offered by electronic banking services and mobile payments, these innovations have introduced substantial security challenges. These challenges include heightened risks of fraud, cyberattacks, and data privacy concerns. While artificial intelligence–based solutions contribute to strengthening cybersecurity in the financial sector by enabling faster responses and the detection of advanced and insider threats, machine learning models used in fraud detection are themselves vulnerable to attacks. This reality necessitates the development of effective defensive strategies and a more integrated approach. Awareness campaigns alone may not be sufficient to curb financial fraud; however, cybersecurity literacy plays a central role in protecting individuals from cybercrime and mitigating its growing risks.
*Head of Cyber Security for the UAE Government