This week’s musings took root while leafing through an article in the esteemed French daily, Les Echos. It unveiled an alarming 9% surge in fraudulent bank transfers in France in 2022, as per the ‘Observatoire de la sécurité des moyens de paiement’. Intriguingly, debit/credit card fraud remained static, a testament to the evolving tactics of fraudsters.
The tools of deceit are advancing rapidly. With each passing day, a new, sophisticated weapon is added to the scammer’s arsenal. Whether it is refined malware sneaking past anti-spam barriers or cunning ‘romance scams‘ aided by online dating platforms, fraudsters are finding novel ways to con victims.
The Observatory underscored the resurgence of the ‘CEO Fraud‘, a type of scam where fraudsters impersonate a high-ranking executive, often the CEO, of a company. They use this perceived authority to trick an employee, typically in the finance or accounting department, into transferring money or revealing sensitive information. The scam typically involves sending an urgent and confidential request for a wire transfer or payment to a new vendor. As the request appears to come from the CEO or a trusted executive, it bypasses normal checks and procedures, leading to significant financial losses – tens of millions in certain cases. In this intriguing scam, the victim unknowingly becomes the perpetrator. Here, the fraud doesn’t lie in the technology but the human susceptibility to manipulation. No high-tech piracy needed, just an individual’s misplaced trust.
Looking ahead, we may face an even more complex battlefield as artificial intelligence is leveraged to bolster deception tactics. Using a short sample (no more than 3 seconds), AI can already mimic voices convincingly, rendering it nearly impossible to distinguish fiction from reality. Such sophisticated ‘impersonation scams’ and ‘identity thefts’ are likely to multiply, with every nugget of personal information shared on social media becoming a potential weapon against its author. And the consequences of these latter scams can often prove long-lasting and very damaging.
Contemplating the potential of quantum computing, supposedly poised to break even the most sophisticated of today’s encryption models, further heightens concerns. Could our reliance on electronic communication be a ticking time bomb? And could this signal a renaissance for the humble paper mail?
Despite a significant decline over the past 15 years, only partially offset by the rise of eCommerce and parcel services, the traditional mail system may be due for a revival. It has withstood the test of time, with mail companies and post offices diversifying their services to survive.
The shortcomings of paper versus electronic communication are naturally evident: reduced speed, limited information capacity, risk of loss, and cost. However, paper mail is inherently detached from vulnerable IT networks, which significantly reduces the risk of interception. Your physical mailbox isn’t as susceptible to hacking as, say, your Gmail account. This principle explains why some entities, including those with malicious intentions, have preferred paper communication over its digital counterpart.
Could there thus be a middle ground, a hybrid model that combines the safety of paper with the convenience of electronics? My bank, for instance, occasionally sends me a list of codes via post that I need to input for specific transactions. This physical security measure complements the usual electronic validation measures by smartphone. In a world where ‘CEO Fraud’ is prevalent, a handwritten code shared on a simple piece of paper could be the deciding factor.
As we continually upload our lives onto virtual clouds, we place unwavering faith in systems, and perhaps more importantly, ourselves to safeguard our data. But given recent technological advancements, isn’t it time we reassess this belief and we reconnect with tangible means before we lose grip on our entire safety?
