This ppt is related to cyber security information and laws.

1. Team - Achivers
College - FORE School of Management (FSM), New Delhi
Team Member
Ramlala
Mahtab Hashmi
Topic - Security and fraud risk

2. Introduction : Security and fraud risk
Security risk refers to the potential for a security breach or unauthorized access to occur within
an organization or system. This can include risks associated with cyber attacks, data breaches,
and other types of malicious activities that can compromise the security and integrity of an
organization's systems, data, and assets.
Fraud risk, on the other hand, refers to the potential for fraudulent activities to occur within an
organization or system. This can include financial fraud, identity fraud, or other types of
fraudulent activities that can result in significant financial or reputational damage to an
organization.
Both security and fraud risks are an important concern for businesses and organizations of all
sizes, as they can have significant consequences if left unmitigated. To minimize these risks,
organizations typically implement a range of measures, including security protocols, fraud
prevention strategies, and training programs to educate employees about how to identify and
prevent security and fraud risks.

3. Key reasons why security and fraud risk management is important :
1. Protecting sensitive data: One of the main reasons why security risk management is important is that it helps to protect
sensitive data from unauthorized access or theft. This includes data such as financial information, customer data, and
intellectual property.
2. Maintaining trust: Another reason why security risk management is important is that it helps to maintain trust between an
organization and its customers, employees, and other stakeholders. If a security breach occurs and sensitive data is
compromised, this can result in a loss of trust and damage to an organization's reputation.
3. Avoiding financial loss: Security and fraud risks can also result in significant financial losses for an organization. For
example, a cyber attack could result in the theft of valuable data or the disruption of an organization's systems, which can
result in lost revenue and increased expenses.
4. Complying with regulations: Many businesses and organizations are subject to various regulations that require them to
implement certain security and fraud prevention measures. Failing to adequately address these risks can result in non-
compliance and potential fines or other penalties.
5. National security: Security breaches and fraud can also have national security implications, as they can be exploited by
foreign governments and other malicious actors.

4. What are the different categories and types of security and fraud risks
that organizations may face:
Some common categories of security risks include:
● Cybersecurity risks: These are risks associated with the unauthorized access or attack of an
organization's computer systems or networks. This can include threats such as malware,
ransomware, phishing attacks, and other types of cyber threats.
● Physical security risks: These are risks associated with the physical security of an organization's
facilities, assets, and employees. This can include risks such as theft, vandalism, and workplace
violence.
● Data security risks: These are risks associated with the unauthorized access or misuse of an
organization's data. This can include risks such as data breaches, insider threats, and data theft.

5. ● Financial fraud: This refers to fraudulent activities that involve the manipulation or
misuse of financial information or transactions.
Examples include embezzlement, accounting fraud, and money laundering.
● Identity fraud: This refers to fraudulent activities that involve the use of someone else's
personal information for illegal or nefarious purposes. This can include identity theft,
impersonation, and other types of identity-related crimes.
● Other types of fraud: There are many other types of fraud that organizations may face,
such as procurement fraud, insurance fraud, and healthcare fraud.
Some common types of fraud risks include:

6. ● Regular monitoring: Regularly monitoring for suspicious activity or anomalies can help to identify potential security
or fraud risks. This can include monitoring for unusual login attempts, unusual financial transactions, or other unusual
activity that could indicate a security or fraud risk.
● Risk assessments: Conducting periodic risk assessments can help to identify and assess potential security and fraud
risks. This can involve analyzing past security incidents, performing vulnerability assessments, and reviewing existing
security protocols and procedures.
● Employee training: Educating employees about security and fraud risks and how to identify them can help to raise
awareness and encourage employees to report any suspicious activity or concerns.
● Security tools and systems: Using security tools and systems, such as intrusion detection systems, firewalls, and
access controls, can help to detect and prevent security and fraud risks.
● External audits: External audits and assessments can provide an independent review of an organization's security and
fraud risk management practices and identify any areas of concern.
How to detect Security and fraud risk ?

7. ● Implement strong security protocols: This includes things like using strong passwords, implementing two-factor
authentication, and regularly updating software and systems to protect against vulnerabilities.
● Train employees on security and fraud prevention: Educating employees about security and fraud risks, and how to
identify and prevent them, is an important part of any risk management strategy.
● Monitor for suspicious activity: Regularly monitoring for suspicious activity, such as unusual login attempts or unusual
financial transactions, can help to identify potential security or fraud risks and allow for timely intervention.
● Use secure communication channels: To protect against data breaches and other types of cyber attacks, it is important to
use secure communication channels, such as encrypted email and secure messaging apps, when transmitting sensitive
information.
● Conduct regular risk assessments: Periodically conducting risk assessments can help to identify and assess potential
security and fraud risks, and allow for the implementation of appropriate risk mitigation measures.
● Implement robust security measures: This can include things like installing firewalls and intrusion detection systems,
implementing access controls, and regularly backing up data to protect against data loss in the event of a security breach.
Best practices that businesses and organizations can follow to minimize
security and fraud risks :

8. Some examples of security and fraud risks that have affected businesses and
organizations around the world:
Yahoo data breaches: In 2013 and 2014, Yahoo suffered two major data breaches that resulted in the theft
of sensitive data belonging to billions of users. The breaches had significant consequences for Yahoo,
including a significant drop in stock price and legal settlements.
Target data breach: In 2013, the retail giant Target suffered a major data breach that resulted in the theft of
sensitive data belonging to millions of customers. The breach had significant financial and reputational
consequences for target.
Equifax data breach: In 2017, credit reporting agency Equifax suffered a data breach that exposed the
sensitive data of 147 million individuals. The breach had significant consequences for Equifax, including
legal settlements and a drop in stock price.
Capital One data breach: In 2019, Capital One suffered a data breach that resulted in the exposure of the
sensitive data of more than 100 million individuals. The breach had significant financial and reputational
consequences for the company.

9. Some example of Laws on Security and fraud risk in India:
1. The Information Technology Act, 2000 is the primary law in India that deals with issues related to electronic
transactions, cybercrimes, and the protection of personal data. It includes provisions related to the protection of
sensitive personal data, cyberstalking, and unauthorized access to computer systems.
2. The Prevention of Money Laundering Act, 2002 is a law that aims to prevent money laundering and the
financing of terrorism. It includes provisions related to the reporting of suspicious transactions and the freezing of
assets.
3. The Consumer Protection Act, 1986 is a law that provides protection to consumers against deceptive and
unfair trade practices. It includes provisions related to false advertising and the sale of faulty or defective goods.
4. The Companies Act, 2013 is a law that regulates the incorporation and operation of companies in India. It
includes provisions related to corporate governance and the prevention of fraud.

10. Some example of Laws on Security and fraud risk internationally:
1. The General Data Protection Regulation (GDPR) is a European Union law that regulates the collection, use, and
protection of personal data. It applies to any organization that processes the personal data of EU citizens, regardless of
whether the organization is based in the EU or not.
2. The Health Insurance Portability and Accountability Act (HIPAA) is a US law that sets standards for the protection of
personal health information. It applies to healthcare providers, health plans, and other entities that handle protected health
information (PHI).
3. The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards that apply to
organizations that accept, process, store, or transmit payment card data. It is designed to protect against cardholder data theft
and fraud.
4. The Sarbanes-Oxley Act (SOX) is a US law that sets standards for corporate governance and financial reporting. It
includes provisions related to the protection of financial information and the prevention of fraud.
5. The Federal Trade Commission Act (FTC Act) is a US law that prohibits deceptive and unfair practices in trade and
commerce. It includes provisions related to false advertising and consumer protection.

11. Conclusion :
● Security and fraud risk are important considerations for businesses and individuals alike. Ensuring that systems
and processes are secure can help prevent the unauthorized access, use, disclosure, disruption, modification, or
destruction of information and assets. This can involve a variety of measures, including implementing strong
passwords and authentication protocols, using encryption to protect data, regularly updating software and
security systems, and training employees on security best practices.
● Fraud risk, on the other hand, refers to the likelihood that an individual or organization will engage in
fraudulent activities, such as embezzlement, identity theft, or false advertising. To mitigate fraud risk,
businesses can implement internal controls and monitoring processes, conduct background checks on
employees and contractors, and establish clear policies and procedures for reporting and addressing suspected
fraud.
● Overall, it is important for individuals and organizations to be proactive in addressing security and fraud risks,
as the consequences of a breach or fraud incident can be significant, including financial losses, damage to
reputation, and legal liabilities.