Chapter 7: Cybercrime in the Digital Finance Ecosystem: Typologies, Terminology, and Economic Cost

In today’s digital age, the significance of cybercrime is indisputable, as it directly undermines the interests of individuals, institutions, and even nation-states. Unauthorized access to sensitive information, assets, and systems, accompanied by acts of manipulation, theft, or extortion, has led to an increasing number of victims, particularly within digital financial systems. Such incidents erode trust in these systems and substantially threaten financial stability. As digitalization and internet-based operations expand within the financial sector, cybercriminals continuously develop new and sophisticated attack methods. This chapter categorizes cybercrimes within the digital finance ecosystem under six distinct typologies: (1) Identity Theft and Data Breach Based Cybercrimes, (2) Cybercrimes Targeting Banking Systems and Payment Infrastructure, (3) Social Engineering-Based Scams, (4) Crypto Asset and Blockchain-Based Crimes, (5) Extortion-Based Cybercrimes, and (6) Cyber-Enabled Money Laundering. By adopting a holistic perspective, this chapter aims to clarify key terms and concepts associated with cybercrime, raise awareness among stakeholders, and provide a comprehensive overview of the economic impacts of cybercrime in the digital finance domain.