ABSTRACT:
Economic cyber crime has emerged as one of the most serious threats to the global financial system in the digital age. With the expansion of online banking, mobile payments, and interconnected financial technologies, criminal actors now exploit digital platforms to conduct fraud, extortion, identity theft, and large-scale financial manipulation. This paper examines the growing phenomenon of economic cyber crime and its evolving impact on financial institutions worldwide. It explores the major forms of cyber enabled financial crime, the techniques used by cyber criminals, and the economic, operational, and systemic risks posed to banks and other financial entities. A comprehensive review of existing literature highlights the transformation of cyber crime from individual hacking activities to highly organized transnational criminal enterprises.Through qualitative analysis and documented case evidence, the study demonstrates that economic cyber crime is no longer a technical issue alone, but a fundamental economic and national security concern. The paper concludes with policy recommendations and strategic measures necessary for strengthening cyber resilience in financial institutions.
INTRODUCTION:
The rapid digital transformation of financial services has fundamentally reshaped how money is stored, transferred, and managed in the global economy. Internet banking, mobile payment platforms, automated trading, and digital wallets have enhanced efficiency and financial inclusion. However, this technological progress has also created new opportunities for cyber criminals to exploit financial systems with unprecedented speed and scale. Economic cyber crime refers to criminal activities conducted through digital means with the primary aim of obtaining financial gain. These activities include online fraud, identity theft, ransomware attacks, unauthorized fund transfers, market manipulation, and digital money laundering.
Financial institutions have become the primary targets of cyber criminals due to the immense concentration of financial assets, sensitive personal data, and critical infrastructures they manage. Unlike traditional crimes, cybercrime transcends national borders, operates anonymously, and evolves rapidly with technological advancements. A single cyber attack can cause billions of dollars in losses, destabilize markets, and undermine public trust in financial systems. The World Economic Forum consistently ranks cyber crime among the top global risks facing economic stability.[1]
The purpose of this research is to examine the rising threat of economic cyber crime to financial institutions by analyzing its causes, typologies, impacts, and regulatory responses. The paper further evaluates existing cybersecurity frameworks and proposes strategies for risk mitigation. The study is significant because economic cyber crime is no longer an operational nuisance but a systemic threat capable of triggering financial crises if left inadequately addressed.
[1] World Economic Forum, Global Risks Report 2023 (18th ed. 2023)