In many countries, financial crime involving identity theft is increasing. What are the causes of this trend, and what effect does identity thief have on the victims involved?

Thanks to technological advancements, financial crime rates are nowadays inclining.

This

trend is happening due to the less protected credit or debit cards circulated by the banks and financial institutes as well as online advancements to withdraw cash easily.The Victims are often affected by two main factors.

Firstly

, since technology is evolving

every day

Replace the word

everyday

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banks have started giving fewer encryption to

bank

account cards. Pin based system has been replaced by only swipe and leaves function which allows an opportunity for thieves to steal the money

Furthermore

, online UPI based apps can do transactions with the mobile OTP or a secret number sent to the phone.

This

allows a greater threat of financial crime as most of the institutes have given functionalities that are not protected from

theft

.

For example

, many people lost their money due to a scan QR code scam where they have scanned a QR code to receive the amount whereas the entire cash from the

bank

gets deducted.

Thus

, reduced encryption-based cards and online advancements are the main culprits of identity

theft

.

On the other hand

, the main factor the victim of financial

theft

needs to combat is huge financial loss apart from that, mental pressure to recover the amount. Many individuals become depressed and suicide as they can't keep up with the fact that their hard-earned wealth has been lost. To illustrate, In the USA many people have committed suicide due to financial loss and depression caused by the circumstances.

Thus

, people should give empathy to the victims and try to help financially. To conclude, only when the

bank

and financial institutes increase their security level on the

bank

account, the financial crime rate of identity

theft

will be reduced.