BioCatch releases comprehensive analysis of digital banking fraud trends in India
MUMBAI, INDIA & TEL AVIV, ISRAEL (Feb. 21, 2024) — In a report released today, BioCatch – the global leader in digital fraud detection powered by behavioral biometric intelligence – released findings showing account takeover represents more than half of all fraud cases for its customers in India. The findings come on the heels of a recommendation by the Reserve Bank of India (RBI) that financial institutions in that country abandon text-based one-time-passcodes as a method of secure authentication.
“The existing OTP-based authentication doesn't protect customers against new-age frauds, including customer-initiated fraudulent transactions,” counter-fraud expert and former Head of Group Fraud Risk and Investigations at First Abudhabi Bank Charanjeet S.Bhatia said in response to the RBI recommendation. “With the right technology and implementations, banks can do a lot more than what they are currently doing to protect customers.”
BioCatch’s much-anticipated 2024 Digital Banking Fraud Trends in India report – the company’s first ever focusing solely on any one nation – offers an in-depth look at the latest fraud risks and prevention strategies for banks in the country as they rapidly employ digital transformation strategies.
The report notes a concerning bump in mule accounts in India, in line with what BioCatch data shows as a growing global threat. At one partner bank in the country, BioCatch found nine out of every 10 mule accounts went undetected.
“The prevalence of mule accounts potentially represents the most under-the-radar trend in the entire fraud space,” BioCatch Director of Global Fraud Intelligence Tom Peacock said. “The mule accounts banks succeed in identifying almost certainly represent just the tip of the iceberg. Indian financial institutions must employ more robust security measures to both detect and then shut down these sprawling mule networks.”
Key India Report Findings:
- Account takeover attacks still dominate: Accounting for 55% of all fraud in India, third-party account takeover fraud still represents a bigger slice of the fraud pie than the social engineering scams BioCatch sees exploding elsewhere on the planet.
- Mules a massively underreported plague: Every device found to participate in mule activity in India logged into an average of 35 accounts each.
- Fraudsters likely accessing Indian mule accounts from outside the country: While 86% of the first session of documented mule account activity came from within India, after a month that number fell to just 20% – and 16% of those sessions used a VPN.
BioCatch's report underscores the urgency with which Indian banks must bolster their fraud defenses. Financial institutions in the region that are successfully detecting and preventing an ever-evolving array of threats have adopted integrated advanced solutions – like BioCatch’s next-generation financial crime detection and prevention portfolio powered by behavioral biometric intelligence.
“The fraud threats we see in India are a mix of both common threats seen globally and unique threats we find only in this region,” BioCatch’s APAC Vice President of Sales Richard Booth said. “All around the world, we’re seeing explosive growth in mule activity, fraud attacks, and scams that grow more sophisticated by the day. To combat this onslaught of fraud and financial crime, BioCatch continues to believe that banking and financial institutions need as much intelligence on the criminals, their tactics, and their fraud arsenals as possible. Our India report provides much-needed intel, and hopefully spurs these banks to rapidly adopt advanced defenses to stay ahead of a ceaselessly innovating group of fraudsters and criminals operating domestically and around the globe.”
BioCatch Global Advisor Edgar Zayas will discuss the report’s findings at the BFSI Fraud Detection & Management India Summit 2024 at the Raddisson Blu Mumbai International Airport, Feb. 27 and 28. To register for this event co-hosted by BioCatch, click here.
To access BioCatch’s 2024 Digital Banking Fraud Trends in India report and learn more about how to safeguard your financial institution against an ever-expanding array of fraud threats, click here.
About BioCatch
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.
Links:
BioCatch’s 2024 Digital Banking Fraud Trends in India report
BFSI Fraud Detection & Management India Summit 2024
Account Takeover: From Bollywood to Hollywood, Even Celebrities Are Not Immune from Fraud
