What is a significant cybersecurity risk when applying for credit online?

When applying for credit online, a significant cybersecurity risk is related to man-in-the-middle (MitM) attacks. In this type of attack, a malicious actor intercepts communication between the user and the credit application website. This can occur on unsecured networks, such as public Wi-Fi, where attackers can monitor and capture sensitive information, including personal data, Social Security numbers, and financial details.

MitM attacks exploit the trust a user has in the connection to the website. If successful, the attacker not only gains sensitive data but may also alter the communication to commit fraud or identity theft. This risk is particularly critical during financial transactions, where sensitive information is exchanged, making it essential to use secure connections (like HTTPS) and to be vigilant about the security of the network being used.

Other risks, such as data breaches, phishing scams, and software vulnerabilities, also pose threats in different contexts. However, MitM attacks are particularly relevant when the focus is on the communication channel during the application process, allowing unauthorized entities access to sensitive information at a critical moment.