Why Online Finance Is More Secure Despite Rising Cybercrime

In the discourse of the internet in 2022, Web3 drowns out almost everything else. Columns dedicated to finance speak almost solely about cryptocurrencies. The richest people in the world are constantly asked about the concept, specific currencies, and the future of that kind of finance. However, when you look at the real world, we are still stuck using traditional currencies.

Cryptocurrencies have captured our imagination and had an impact on our wallets, but to get around in the world, we use 'real' money like we always have. The difference is that we almost never touch cash. The money we use is digital, although it is based in a traditional concept.

This begs the question of why cryptocurrency even needs to exist. Of course, the answer has to do with decentralization and security. And it is the latter that is most pressing in today's world. Cybercrime is on the rise, putting our money more at risk than ever before.

That has not stopped online finance tools from becoming our primary way of making transactions. We can now pay all of our bills online, shop online, invest online, and even buy homeowners insurance online. In the light of rising cybercrime, is this a good thing? Should we be sticking to traditional ways of making financial transactions? Alternatively, could it be that our money is more secure than ever before?

The Perks of Online Security

On a societal level, our economic system stands on a foundation that could collapse with a massive cyberattack. Mr Robot was premised on that very idea, with a group of hackers trying to take down the biggest credit corporation in their fictional world.

However, on an individual level, we are more secure in our transactions than ever. The end of a cash-based world is part of it. In the past, we could lose money simply by misplacing it. Someone could come into our homes and steal large amounts of cash from us, leaving us in major financial difficulty. These days, few people keep any amount of cash worth stealing.

There is also the benefit of having access to our accounts at all times. We can see if any transactions have taken place, whether they occurred at an ATM or through an electronic device. In the past, someone could have taken money from your bank account without you knowing about it for days or weeks. That is no longer possible.

If we look at online finance on this very fundamental level, we can see that it is more secure, even with cyberattacks becoming a reality. There is another aspect that makes our own finances more secure.

Financial Service Providers and Accountability

Cybercrime is indeed used on a daily basis to steal money from people. And you could fall victim to it as well. If you fall for a scam and send money to a thief, or if you have an easily hackable password and your account is broken into, you could lose a lot of money. However, any other attacks on your account have very little to do with you.

On the contrary, if someone attacks your bank and gets access to your money, accountability falls on the bank. It does not matter that they took money from your account because it was the bank's services that were broken into. They are therefore required to pay you back.

The same is true if your money was stolen because of a breach of a Fintech company that provides a secure payment portal. Paying money to online stores with your credit card is not all that risky because the security is provided by the Fintech company and they are on the hook if they make you vulnerable. Ts&Cs can only go so far in protecting them from liability.

We live in an increasingly online world, and that has made our finances more secure, at least on an individual level. You don't have to worry too much about cybercrime against your bank. Be alert for scams and update all your passwords to ensure they cannot be easily hacked, but don't hesitate to carry out transactions through legitimate secure portals.

(Devdiscourse's journalists were not involved in the production of this article. The facts and opinions appearing in the article do not reflect the views of Devdiscourse and Devdiscourse does not claim any responsibility for the same.)