Topics in AccountsScheme of work, Financial Accounting, SS1, Third Term Scheme of work, Financial Accounting, SS1, Second Term Scheme of work, Financial Accounting, SS1, First Term Bookkeeping and Accounting: Importance of Booking, Differences between Bookkeeping and Accounting Journal - Contents, Format, Characteristics and Advantages of Journal Bank Wire and Wire Transfer - Cyber threats to Wire Transfer Chart of Accounts Meaning, Importance, Processes, Examples and Steps in Balance Sheet Reconciliations
Academic Questions in Accounts
Let me begin by stating that a bank wire does not involve the transfer of money or payment.
Bank Wire is a messaging system that allows banks to communicate the various events occurring on a clients’ account.
As an instance, when your account is credited by someone, you may get a notification from your bank with details concerning such transaction.
Such notification(s) from the above instance is a function of bank wore
The term “wire” in a bank wire signifies a computer based programmed messages that are sent to the bank customers regarding their account information, transactions and other important financial notifications. These messages are always secured and may be encrypted along the wire.
Another important aspect of the bank wire is to inform the bank or financial institution about an event on a customer’s account. Now, let’s say for instance, someone debited your account from a different financial institution, your bank will be notified with the details of such deposits.
Your bank getting this notification is a function of the bank wire.
Have you ever transferred money to (or received money from) someone in another country without going to a bank. If yes, then you are very likely to do it over a network.
A wire transfer is simply an electronic transfer of money across a network.
We live in a digital age where millions of people safely send and receive money from the comfort of their homes. It is important to note that no physical exchange of money happens between the banks in wire transfer. Rather, there is transfer of information concerning the sender and the receiver. Such information entails the sender’s name, receiver’s name, bank account number and the amount of money sent or received.
The International Bank Account Numbers (IBAN) may be involved in some complex bank wire transfers.
Honestly, our lives have been made much easier with the introduction of wire transfer; but a major disadvantage faced is the involvement of cyber criminals whom may interfere with the processes of wire transfer, thus diverting funds into their own accounts.
Note: Cyber threats are on the high as many online financial services are negatively impacted daily.
Several methods have been implemented by cyber criminals to break into various wire transfers (online transactions). Some of these include:
Cross Site Request Forgery (CSRF or XSRF) or Sea Surf: In a CSRF attack, an attacker abuses the trust that a web application has with an authenticated victim’s browser.
Phishing: It occurs when an email with a clickable link is sent to a person or an organization. If the link within the email is clicked, a person may be redirected to a fake website and may enter his or her financial details into such criminal website.
Whaling: Whaling is similar to phishing but the difference is the target. In whaling, highly placed executives like the Chief Executive Officer (CEO) and Executive Director (ED) becomes the target of the clickable scam email.
Denial of Service (DOS): This attack will prevent the legitimate user from assessing an application or a system. One way the cybercriminals go about this is to enter the wrong password to an account many times until the legitimate user is blocked out of the account. Also, the criminals may block network connectivity to a legitimate financial website while simultaneously directing users to a fake website where they can collect the financial details of these users.
Please read more on Computer Networks here.
Backdoor attacks: These attacks can come in the form of keyloggers, trojan horses and viruses. One way an attacker uses a keylogger is by placing a small device on the client’s computer. The keylogger will capture every keystroke entered on such computer by whomever operates it. (The user may have entered financial details while using such computer). The attacker gets all the entered keys through a network backdoor created by the keylogger.
Direct Attacks: Includes malicious software like viruses and trojan horses that infects computer systems. These malware may copy or modify a system’s financial information after gaining access into it.
Note: Although individuals are target for cyber attacks, Large financial institutions are even bigger targets. Most financial institutions attempt to prevent financial fraud by employing Cyber Security Analyst (CSA and Certified Ethical Hackers (CEH)
In some advanced countries like the USA and Switzerland, it is very difficult to scam a person via wire transfer. This is the case because you must be registered by your bank and the law enforcement agency in order to run a wire transfer; so even when the scam transfer was successful, there is a 99% chance that such cyber criminals will be caught.
One has to be careful when a stranger intends to use his or her bank account for wire transfer because the funds intended to be transferred may be stolen.
Also, if money is wired to an institution that pays out money in cash, for instance, western union; it becomes somewhat difficult to verify whether the ideal recipient got the money because anyone with a fake identity card will be able to withdraw such money.
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Alfred Ajibola is a Medical Biochemist, a passionate Academician with over 7 years of experience, a Versatile Writer, a Web Developer, a Cisco Certified Network Associate and a Cisco CyberOps Associate.
Amazing facts in Accounts
It is believed that Bookkeeping is the only English word to contain three sets of double letters repeatedly.please read our article on bookkeeping vs Accounting here
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