Stolen device fraud trending upward
MEXICO CITY (Sept. 25, 2024) — A new report released today shows cases of malware used to execute digital banking fraud more than doubled in Latin America in the last 12 months, costing victims hundreds of millions of dollars. The findings illustrate how quickly malware developers can evolve and adapt their programs to evade bank defenses.
“What’s surprising isn’t necessarily the spike in malware-driven fraud cases in the region,” BioCatch Director of Global Fraud Intelligence Tom Peacock said, “but the volume in which these spikes occurred. We saw cases climb drastically in January of this year, taper off as banks sniffed out and shut down these attacks, and then explode again in June.”
In its 2024 Digital Banking Fraud Trends in Latin America report, BioCatch – the global leader in digital fraud detection and financial crime prevention powered by behavioral biometric intelligence – also shows a continuation of the stolen-device fraud trend it’s observed since at least 2018, as reported cases of digital banking fraud across the region grew by 32% in the first half of 2024 compared to the same period in 2023.
“Scams in Latin America continue to evolve in both scope and scale,” BioCatch LATAM VP Jorge Aguilar Perez said. “Receiving suspicious phone calls, texts, and emails is now the norm, but even when we know these attacks are coming, the relentless innovation and persistence of scammers convinces more and more of us every year to share the personal or financial information these bad actors need to steal our hard-earned money.”
Other key report findings:
• Grandoreiro wreaking havoc: This 7-year-old banking malware trojan keeps returning, targeting more than 1,500 financial institutions in the last year—more than 20% of which are located in Latin America.
• Regulation is coming: Chile and Colombia have already passed laws requiring banks to repay certain customers who fall victim to a scam, and Mexico and Brazil appear poised to do the same.
• Account takeover still a concern: While social engineering attacks are on the rise nearly everywhere, BioCatch still sees a substantial amount of account takeover in countries where regulation is less advanced, and fraudsters find it easier to compromise accounts.
Click here to access BioCatch’s complete 2024 Digital Banking Fraud Trends in Latin America report.
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 interactions to support a digital banking environment where identity, trust, and ease coexist. Today, 32 of the world's largest 100 banks and 210 total financial institutions rely on BioCatch Connect™ 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, 92 registered patents, and unmatched expertise, BioCatch continues to lead innovation to address future challenges. For more information, please visit www.biocatch.com.
PR contact:
Mac King
BioCatch senior comms manager
Mac.King@BioCatch.com
