Logistics and Fraud Prevention: Cybercrime and Cyber Security
Logistics involves planning, determining, executing, and controlling the physical movement of materials from the sources of supply such as manufacturers to the points of consumption such as warehouses. Logistics range from traffic, physical distribution, management of supply chain to transportation. People who work in logistics are included at all levels of the activities of a company. People with logistical experience and background are much in demand these days.
Companies are establishing logistics departments under the control of one manager. This is meant to create a competitive situation. This way, companies can ensure quick material flow inbound and outbound, low cost, and high customer satisfaction.
Logistics are needed to eliminate waste, reduce costs, and satisfy customers. Companies prefer dependable inventory management programs and reliable suppliers and movers.
Importance of Logistics
A lot of money is spent on logistics in most organizations. Logistics costs cover inventory carrying costs, inbound and outbound transportation cost, and administration costs.
Globalization of businesses and outsourcing brought new suppliers, markets, accommodations, systems, business practices, and time zones to different businesses in different regions of the world. New business practices such as Six Sigma developed. Six Sigma is a set of tools and techniques to improve processes.
The current global health crisis has underlined the complexity of coordinating an operation involving many people spread across various geographical areas and times zone, facilities, and/or suppliers.
Increased computer usage meant greater logistics capabilities. In the financial services industry, the logistics of cyber security and fraud prevention are considered critical to protect the interests of the customers.
Cybercrime or computer-oriented crime involves a computer and a network. A computer may be used in committing a crime, or it may be the target. Cybercrime is a threat to the security and financial health of a person, groups, businesses, or nations.
Cybercrime is a growing threat facing individuals, businesses, and governments. We see new business opportunities with the digitization of businesses and the growth of internet usage, but these bring with them new exposures, cyber-attacks being one of them.
Digitization is the process of converting information into a digital format with technology and computing.
Financial services institutions are usually the leaders in the prevention and detection of cyber security threats. They work with other financial services institutions through idea sharing to accomplish a common goal. They also work with regulators, law enforcement and all levels of government to share best practices and other information to address the growing challenges posed by cybercrime.
A cyberattack is any attempt on computers and computer networks to uncover, modify, deactivate, destroy, steal or get unapproved access to or make illegal use of an asset that does not belong to the individual or group behind the attack.
Even powerful people are not immune to cyber attacks. Twitter accounts of Barrack Obama, Joe Biden, Bill Gates, and Jeff Bezos were hacked on July 16, 2020, in a prominent cyber attack linked to Bitcoin scam.
The growth of banking transactions, or transactions done online, means a greater number of individuals are doing their banking online or through their mobile devices. A transaction is a business event that has a monetary outcome on an individual's finances such as buying clothes or gadgets online.
Cyber security is the method used to protect systems, networks, and programs from digital attacks[i]. Cyber attacks usually aim at accessing, changing, or destroying sensitive information; wringing money from users; or disrupting normal business operations.
Implementing effective cyber security measures is challenging today because there are more devices than people, and attackers are using more advanced and sophisticated tactics.
"The burden of responsibility for successful hacks still falls largely on chief information and security officers, rather than chief executives. But experts say the issue of cyber security is now front-and-center for the senior most corporate ranks."[ii]
Risk to Health Organizations and Research
Health and research organizations must remain alert and make sure they are engaged in cyber defense best practices, including continuous and improved monitoring of network logs, training employees to be aware of phishing, and ensuring that servers and critical systems are patched for all identified security vulnerabilities.
This advice applies to other businesses as well, especially those with employees working from home or other locations through Virtual Private Network (VPNs). Companies and organizations must apply patches and improvements for critical vulnerabilities as soon as they are noticed and caught.
VPN software creates an encrypted connection, known as tunnel, between your computer and a server controlled by the VPN company and filters all network activity through the protected tunnel. This hides your online activities from everyone, including your Internet Service Provider (ISP). ISPs are now allowed to sell your information even if it is supposed to be anonymous.
Everyone is at risk of becoming a victim of fraud. It is not only seniors, women or new immigrants who are vulnerable. Scammers are clever and can adapt with no trouble. Staying informed helps to avoid being scammed and victimized
I have more than seven years’ experience working in the financial services industry in Canada. I have seen the due diligence efforts made by financial services institutions to protect their interests and the interests of their customers.
Organizations become vulnerable if they do not have adequate IT security measures. Company or personal information can be stolen, reputations can be harmed, and resources can be wasted.
- Be aware of relentless phishing activities related to COVID-19 or your personal and/or company information. Phishing is a type of social engineering attack often used to steal user data, including login credentials and credit card numbers. In this ccase, an attacker pretending to be someone who can be trusted dupes a victim into opening an email, instant or text message.
- Small organizations that do not have a strong cyber defense capacity would benefit from consulting private vendors of this kind of services.
- Companies must put in place suitable security policies, and monitor logs for malicious activity.
- On a personal level:
- Protect your computer and online activities with a reliable security software.
- Before you buy, look for well-known, independent, credible sources of information.
- Consult a healthcare professional before you try a new treatment.
- Know that some websites create fake success stories to make their products or services appear more desirable.
- Be aware that a doctor on a website recommending a health product or medical treatment could in fact be an actor.
[i] Cisco website.
[ii] “Chief Executives Face Rising Accountability for Cyber Lapses.” James Rundle and Catherine Stupp. (Sept. 3, 2020). WSJ PRO.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.