Remote access scams are circumventing traditional fraud controls, including device identification, IP geo-location and two factor authentication. In this article, we explore the attributes of these scams, the size of the problem, trends in scam losses and the new mitigation controls that are helping solve the problem.
New account fraud is one of the largest and most dangerous threats that businesses face when processing transactions online. According to an analyst from Javelin Strategy & Research, it’s the “most expensive form of identity fraud for businesses and consumers alike.”
In 2018 alone, new account fraud caused $3.4 billion in losses, an increase over previous years. The steady leak of personally identifiable information (PII) is largely responsible for the upward trend. The amount of PII exposed in data breaches — such as social security numbers, emails, addresses, phone numbers and device and network attribute — grew by 126 percent between 2017-2018. Hackers use the information to forge stolen identities and open fraudulent new accounts.
Why is new account fraud spiraling out of control? Because you can’t teach an old dog new tricks.
Out with the Old
Traditional methods for fraud detection and the safeguarding of digital identities are outdated and lacking. Advanced fraudsters are constantly finding new ways to steal identities or create synthetic ones, handedly sliding past these systems of defense.
Today’s detection tools also cause friction in the account opening process. And as any organization knows, friction is the number one reason customers will walk away from doing business with your brand. Online transactions should be seamless, not full of frustrating roadblocks to opening an account.
In with the New
The missing piece to the puzzle is behavioral biometrics. Powered by artificial intelligence and machine learning, behavioral biometrics works behind the scenes to monitor a user’s online behavior. By analyzing thousands of behavioral patterns specific to how a user acts during an online session, the technology can verify that the individual opening an online account is legitimate, and not a fraudster. Users are kept secure without having to take additional steps. It’s a seamless process.
In this infographic, we highlight the most alarming new account fraud trends and statistics, explain why traditional fraud detection methods fall short and examine how BioCatch’s behavioral biometrics technology closes the gaps.
Last month, Forrester issued a report commissioned by Visa entitled “Understanding the Evolving Payments Landscape.” The purpose of the report was to evaluate how financial institutions and eCommerce merchants are protecting themselves from fraud in a rapidly changing world, both in terms of consumer attitudes toward online transacting and fraudsters’ use of ever-more sophisticated tactics.
Well – maybe I’m a bit biased as I’m chair of FraudCON, but I think all who attended FraudCON 3.0 held June 27th as part of Tel Aviv Cyber Week 2019 would agree it was an amazing event. Over 800 people have registered, the hall was packed with fraud fighting professionals, and the content was truly inspiring.
I don't know anyone who hasn’t received at least one scam call already this year — I received two yesterday alone. In the past two weeks, I've had scam phone calls from Belgium, Uganda, Senegal, Cuba, and Estonia and multiple from Australia. It’s not surprising, then, that phone scams are receiving increased mainstream media coverage, and increased focus from regulatory bodies.
Business email compromise (BEC) and remote access trojan (RATs) attacks are two of the top threats for companies to keep an eye on in 2019.