What is technology-based fraud?

Technology-based fraud refers to any type of deceptive activity that uses technology, digital tools, or electronic systems to commit fraud — that is, to steal money, information, or assets through dishonest means.

Here’s a clear breakdown 👇

🔹 Definition

Technology-based fraud is the use of computers, the internet, or other digital technologies to carry out deceptive schemes aimed at financial gain, identity theft, or data manipulation.

🔹 Common Types of Technology-Based Fraud

1. Phishing:
   Sending fake emails, messages, or websites that trick people into revealing personal or financial information.
2. Identity Theft:
   Stealing someone’s personal information (like passwords or banking details) to impersonate them online.
3. Online Banking Fraud:
   Hacking into bank accounts or tricking users into transferring money to fraudulent accounts.
4. Credit Card Fraud:
   Using stolen card details to make unauthorized purchases online.
5. Ransomware and Malware Attacks:
   Infecting a computer system and demanding payment (ransom) to restore access.
6. Investment or Crypto Scams:
   Fake investment platforms or cryptocurrency schemes promising high returns.
7. E-commerce Fraud:
   Creating fake online shops or using stolen payment information for online purchases.

🔹 Key Characteristics

• Relies on digital communication (emails, websites, apps, etc.)
• Involves deception or manipulation for profit
• Targets individuals, businesses, or governments
• Can occur across borders, making detection and prosecution difficult

🔹 Example

A person receives an email from what looks like their bank asking them to “verify their account.” They click a link that leads to a fake site and enter their login details — which the fraudster then uses to access their real bank account.