Financial Risks of Malware
Malicious software’s goal is often financial fraud. Learn the most common ways malware can put your finances at risk, and how to protect yourself.
Staying safe from the financial risks of malware.
Malware, short for “malicious software,” has hundreds of thousands of known variants and is a pervasive threat. To avoid becoming a victim of these disruptive software attacks, it’s crucial to know what malware is, how it works, and how to safeguard your devices, your data — and most important, your finances.
What is malware?
Malware is software designed to damage, exploit, or otherwise compromise computers, networks, or mobile devices, often with the intent of stealing sensitive information to commit financial fraud.
Types of malware
- Ransomware — Denies you access to data files or systems until a ransom is paid.
- Spyware — Secretly monitors and collects your information then sends to a third party without your consent.
- Trojan — Disguises itself as legitimate software and then performs harmful actions.
- Virus — Attaches to software on your device and then replicates itself when that software is run by inserting harmful code into other programs.
- Worm — Self-replicates and spreads independently across computers and networks without attaching to an existing program, typically exploiting vulnerabilities of a device’s operating system and damaging data files.
How does malware work?
Typically, malware installs itself onto a device when a user performs a specific activity. The following examples are common ways people unwittingly allow malware to be installed.
- Downloading unreliable software from the internet.
- Opening email attachments from unknown senders.
- Clicking on links from malicious senders.
- Inserting infected removable media, such as discs and USB drives, into the device.
- Downloading and using pirated software, movies, or music.
- Neglecting to install the latest software updates.
- Visiting malicious websites, where malware is installed unknowingly in the background.
- Accepting harmful prompts, such as pop-up alerts.
What financial threats does malware pose?
In some cases, malware is intended purely to inflict damage on data and files. However, the end goal is often financial fraud.
Here are the most common ways malware can put your finances at risk:
- Identity theft – Malware can steal sensitive information, like Social Security numbers, and then use the data to open credit cards, loans, or other accounts in your name.
- Account hijacking – Banking trojans can capture your financial credentials and then make unauthorized transactions or even drain your accounts entirely.
- Ransom demands – Ransomware encrypts your important data files and then demands you pay a ransom to have them restored.
- Payment scams – Malware can direct you to fake pop-up ads or fraudulent websites that sell nonexistent goods or services.
- Phishing – Malware can be used to trick you into divulging your banking credentials or other sensitive information that can lead to financial theft.
Protect your data, devices, and finances from malware.
Protecting yourself from malware involves a combination of awareness, smart online practices, and proactive measures.
- Stay informed: Ensure everyone in your household knows the signs and risks of malware. Discuss how to recognize phishing emails, suspicious downloads, and unsafe websites. Make sure everyone uses secure Wi-Fi and downloads apps only from official app stores.
- Read all prompts carefully: Always read on-screen prompts thoroughly before clicking any links or installing software. If you encounter a questionable prompt, exit the installation process immediately.
- Click with caution: Don’t click on pop-ups, ads, links, or email attachments that appear suspicious or if you don’t know the source.
- Secure your accounts: Create strong passwords with 15 or more characters and use a mix of upper- and lowercase letters, numbers, and symbols. Use two-factor authentication whenever possible.
- Implement anti-malware measures: Install antivirus software, enable automatic updates for operating systems, browsers, and applications, and frequently back up important data to secure locations to mitigate the impact of potential ransomware attacks.
Be aware. Remain alert. Stay secure.
By understanding how malware works and following the recommended prevention strategies, you can help protect your computer systems and your bank accounts from this pervasive threat.
Learn more about fraud prevention and cybersecurity at key.com/consumer-security.
What to do if you become a victim of fraud:
If you think you’ve been a victim of fraud, contact KeyBank as soon as possible. We can check your accounts to see if they’ve been compromised and take measures to help prevent further fraudulent activity.