As the banking industry’s digital transformation washes over the world at light speed, the dark underbelly of cybercrime is keeping pace, creating an urgent need for robust defense strategies.
BioCatch and our tightly integrated global network of fraud fighters stand at the forefront of this battle, offering a deep dive into the digital banking fraud trends that are shaping North America's financial landscape today and moving into 2024.
Understanding the Fraud Landscape
Our latest report serves as a compass to navigate the complex fraud dynamics of today's digital banking environment. It alerts us to a concerning 61% surge in mobile fraud incidents, reflecting the vulnerabilities that come hand-in-hand with increased mobile banking usage, which now stands at a staggering 73%.
This report also sheds light on the resurgence of check fraud. This trend is particularly perplexing given the decline in check usage, suggesting that fraudsters are exploiting less guarded channels as digital defenses tighten elsewhere.
Tackling Fraud with Behavioral Biometric Intelligence
One of the North America report's pivotal insights is the transformative role of behavioral biometric intelligence. Financial institutions are increasingly deploying our innovative technology to distinguish legitimate customers from fraudsters. By analyzing patterns in user behavior, BioCatch provides a sophisticated shield against the most devious of threats, ensuring a safer banking experience for customers.
A Closer Look at Case Studies
An in-depth case study featured in the report illustrates a critical shift in fraudster tactics, from using bots to employing mobile emulators. These advanced techniques allow criminals to bypass traditional security measures, creating fraudulent accounts to siphon unemployment benefits, stimulus checks, and other government assistance funds.
Key Report Highlights
Mobile Fraud on the Rise: Mobile banking rates increased from 54% in 2022 to 73% in 2023, leading to a rise in mobile fraud attacks from 47% to 61%.
Check/Deposit Fraud Takes the Lead: Fraud in deposit accounts is the #1 fraud type across North America (including fraudulent account openings and account takeovers), with one million cases seen across its customers in H1 2023.
Zelle Fraud Is Rising: Fraudulent transfers using Zelle® increased by 4% in 2023, with over 30,000 cases seen in H1.
Fraudsters Shift from Bots to Emulators: A BioCatch case study shows a decrease in bot attacks and a sharp rise in mobile emulators against five North American banks, with one bank reporting 1584 more emulator attacks in 2023 compared to 2022. The data indicates that fraudsters are quickly favoring emulators to evade traditional defensive controls, reinforcing the effectiveness of behavioral biometric intelligence.
Attack Differences in the U.S. and Canada: In the U.S., criminals favored bot attacks at account opening, check and deposit fraud, digital transfers, and mule accounts. Data from Canada shows a preference for voice scams impersonating government bodies, targeting mobile devices, investment and romance scams, phishing attacks, and mule accounts.
Embracing the Change
The 2023 Digital Banking Fraud Trends report is not just an aggregation of statistics and facts; it's a clarion call for adaptive change for the industry. To thrive in this new era, it's essential to stay informed and proactive. Download the report now to strengthen your defenses and tap into the collective power and insights of our global fraud fighters.