Affirms Increasing Sophistication and Aggressive Nature of Cyber Attacks by Fraudsters Post-Global Pandemic; Confirms Mounting Challenges Facing Banks and Consumers.
Mexico City, Mexico & Tel Aviv, Israel – September 27, 2023 — BioCatch, a global leader in digital fraud detection powered by behavioral biometric intelligence, today unveiled its anticipated 2023 Digital Banking Fraud Trends in Latin America (LATAM) report. The report offers an in-depth understanding of the latest risks and prevention strategies for the banking industry in the region, specifically how and where cybercriminals are using social engineering tactics, including voice and investment scams, to defraud victims.
"In our EMEA and APAC fraud trend reports this year, we've observed an increase in social engineering scams. The data from our latest report for the LATAM region confirms this as a global trend. Cybercriminals increasingly target humans as the weakest link rather than technological systems. Playing on a victim's emotional state, such as loneliness, panic, or greed, can often be more effective for fraudsters," stated Tom Peacock, BioCatch Director of Global Fraud Intelligence. "This highlights the importance of fortified security measures that defend not only against standard Account Takeovers, including RAT and malware attacks, but also detect behavioral abnormalities indicative of social engineering."
Key Report Findings:
- Social Engineering Attacks Surge: A concerning 33% of all fraud cases in 2023 can be attributed to social engineering attacks. Sharp rises were particularly evident in Mexico, Brazil, Chile, and Argentina.
- Stolen Device Cases Almost Double: The first half of 2023 saw a shocking 90% surge in stolen device cases compared to the same period in 2022.
- Mule Accounts Double in Number: BioCatch observed a 100% spike in reported mule accounts, emphasizing the mounting financial crime challenges facing the retail banking sector.
- Wide-Ranging Scamming Techniques: The report highlights novel scams such as the "WhatsApp family scam" and "Investment scams" that are rapidly gaining traction in LATAM.
- Innovative Criminal Methods: Unconventional methods like "Shoulder Surfing," and "Facial Recognition Bypass" have emerged, further complicating the security landscape.
- Banks Adopt Advanced Security Measures: With the accountability often falling upon banks for customer losses, there's a marked shift towards adopting state-of-the-art solutions like machine learning and behavioral biometric intelligence.
BioCatch's timely report underscores the urgent need for banks to bolster their fraud defenses. With victims increasingly looking to their banks for compensation and protection, it's paramount for financial institutions to integrate advanced solutions that not only detect but also prevent these ever-evolving threats.
“The landscape of cyber threats, particularly in Latin America, mirrors broader global challenges faced by almost every retail bank worldwide," remarked Jorge Aguilar Perez, VP LATAM at BioCatch. "To navigate this complex terrain, it's vital to couple a deep analysis of these threats with actionable insights." Our latest report sheds light on these challenges – notably the surge in voice scams and the rise of mule accounts – and emphasizes the need for financial institutions to stay ahead of these evolving threats."
Click here to access the full report and learn more about how to safeguard your financial institution against these rising threats.
BioCatch stands at the forefront of digital fraud detection, pioneering behavioral biometric intelligence grounded in advanced cognitive science and machine learning. BioCatch analyzes thousands of user digital interactions to support a digital banking environment where identity, trust, and ease coexist. Today, more than 25 of the world's leading 100 banks and >100 of the largest 500 rely on BioCatch's solutions to combat fraud, facilitate digital transformation, and grow customer relationships. BioCatch's Client Innovation Board, an industry-led initiative featuring American Express, Barclays, Citi Ventures, HSBC, and National Australia Bank, collaborates to pioneer creative and innovative ways to leverage customer relationships for fraud prevention. With more than a decade of data analysis, over 80 registered patents, and unmatched expertise, BioCatch continues to lead innovation to address future challenges. For more information, please visit www.biocatch.com.