Protecting Your Lending Business: Insights from the 2024 IC3 Report

It has been well documented by now, cybersecurity threats are a growing concern, especially for private lenders in the construction sector. And it’s not slowing down. In fact, the latest report from the Federal Bureau of Investigation found a 33% INCREASE in losses due to fraud from 2023 to 2024 (see graphic below). The 2024 Internet Crime Complaint Center (IC3) Annual Report provides valuable insights into the current state of cybercrime, revealing trends that highlight the vulnerabilities many businesses face. In this article, we’ll summarize the key findings of the IC3 report and illustrate how Sekady can empower private lenders to protect their businesses through robust security measures.

"As nearly all aspects of our lives have become digitally connected, the attack surface for cyber actors has grown exponentially. Scammers are increasingly using the Internet to steal Americans’ hard-earned savings," Chad Yarbrough, the FBI’s operations director for criminal and cyber. "And with today’s technology, it can take mere taps on a keyboard to hijack networks, cripple water systems or even rob virtual exchanges. These rising losses are even more concerning because last year, the FBI took significant actions to make it harder, and more costly, for malicious actors to succeed."

The agency received 859,532 total complaints of scams and cybercrime last year. Losses could be even higher, as not all cybercrime is reported to the FBI.

Some Key Findings from the 2024 IC3 Report

The IC3 report outlines several alarming trends in cybercrime that are particularly relevant to private lenders:

1. Increased Incidents of Fraud: The report indicates a substantial rise in various forms of fraud, particularly in the realm of online transactions. With more businesses operating digitally, cybercriminals are exploiting vulnerabilities to steal sensitive information.
2. Phishing Attacks: Phishing remains one of the most common methods used by cybercriminals to gain access to personal and financial information. Attackers use deceptive emails and websites to trick individuals into revealing confidential data.
3. Ransomware Threats: The report highlights the growing threat of ransomware attacks, where malicious software encrypts a victim's data, with attackers demanding a ransom for decryption. These incidents can severely disrupt business operations and result in significant financial losses.
4. Gratification from Technical Support Scams: The annual report also notes a notable increase in technical support scams, where fraudsters impersonate legitimate companies, leading to potential data breaches and theft.

How Sekady Helps Private Lenders Safeguard Their Business

Amid these alarming trends, Sekady stands out as a technology solution designed to fortify private lenders’ security practices. Here’s how Sekady’s robust security processes can help mitigate these threats:

1. Comprehensive Data Encryption: Sekady employs advanced, 256-bit AES encryption (exceeding bank-grade standards) to protect sensitive information across all transactions. This ensures that borrower data and financial details remain confidential and secure from unauthorized access.
2. Routine Penetration Testing and Robust AML/KYC/SARS/OFAC Programs
3. Account & Entity Validation Services: Know who you are paying, when, and what for. Sekady’s validation services aim to reduce fraud by enabling
4. SOC2 Type 2 Certification: Sekady meets strict standards for trust principles including security, availability, processing integrity, confidentiality, and privacy are set and maintained.
5. Web Application Firewalls
6. User Education and Awareness Programs: Beyond technology, Sekady emphasizes the importance of educating users about cybersecurity risks, including how to identify phishing attempts and secure their accounts. This knowledge empowers private lenders to be the first line of defense against cyber threats.
7. Integrated Security Protocols with Partners: Working alongside reputable integration partners, Sekady ensures that security standards are upheld throughout its ecosystem, providing private lenders with a reliable platform that prioritizes their safety.
   
   

As highlighted in the 2024 IC3 report, the threat landscape is increasingly fraught with challenges, and private lenders must prioritize security to protect their businesses. Sekady offers a comprehensive risk management solution designed to safeguard sensitive information and enhance operational efficiency through draw and inspection management, lien waiver protections, and more. By leveraging Sekady's robust security processes, private lenders can focus on their core business activities, confident that they are minimizing potential fraud threats.