Financial literacy is the ability to understand and manage money well enough to make informed decisions. In cyber security, it matters because many attacks depend on confusing people about payments, accounts, and value. If someone can read a bank statement, recognize normal transaction patterns, and understand basic banking terms, they are less likely to approve a fake transfer or trust a fraudulent “urgent payment” request.
Attackers often target gaps in financial literacy with phishing, invoice fraud, payroll diversion, investment scams, and impersonation of banks or executives. The goal is to pressure a victim into moving money before they verify details. Defenders use financial literacy as part of awareness training: teach users how legitimate payment requests work, how to verify account changes through a second channel, and how to spot signs of fraud. Better financial knowledge reduces hesitation, improves verification, and makes social engineering harder to succeed.