People have been gradually moving to a digital-first lifestyle for some years as online activities and transactions have become more accessible and simple. Financial institutions have put a lot of work into enhancing their digital customer experience to reach and attract new audiences online, notably during the COVID-19 epidemic.
On the other hand, fraudsters are getting more skilled as consumers and companies become more familiar with navigating the internet world. The financial sector, particularly the banking institutions, has been struck the hardest by online frauds, and the problem isn’t going away anytime soon. The theft of personal data gives criminals the ability to create new accounts, take over existing ones, and take out money, resulting in significant financial losses.
It’s time to take your banking to a more secure level!
Did you know?
In most cases, bank frauds are committed against the bank’s clients. However, Covid-19 has enabled an increase in internal financial fraud.
In 2020, identity fraud and scams caused $56 billion in combined damages, with a rise in identity theft schemes, according to a fraud study.
Account takeover, new account fraud, and money laundering are some of the most prominent bank frauds that can be seen recently around the globe.
When a cybercriminal gets access to a victim’s login credentials to steal cash or information, this is known as account takeover fraud (ATO). Fraudsters use several tactics to get control of a financial bank account, including phishing, malware, and man-in-the-middle assaults. The financial damages and mitigating measures required, ATO is a major danger to financial institutions and their consumers.
Transactions made on a bank account created solely for the purpose of committing fraud are referred to as new account fraud. Pretending to be a real client, the fraudster applies for an account with a financial institution. They might try to exploit a stolen identity, but nowadays, fraudsters are much more likely to utilize a synthetic identity.
Money laundering is the illicit process of turning money obtained via criminal actions into clean money, which may be freely utilized in normal company operations without having to be hidden from authorities. Money laundering operations handle trillions of dollars each year throughout the world.
There are some effective tools to prevent these frauds such as:
Advanced Authentication is a component of a fraud prevention platform, created to improve user experience, reduce the cost of second-factor authentication and identify suspicious activity in real-time, which results in more corporate growth and security.
Its functional components include:
Advanced Authentication’s Key Benefits:
Automated Fraud Analytics enables you to ensure that you learn about potential fraudulent behavior before it begins, that you have all of the data and analysis necessary to make correct and fast choices, and that you identify complex fraud situations.
Instruct employees not to retain sensitive files on mobile devices utilizing unprotected public Wi-Fi connections and to protect devices with multi-factor authentication (such as questions, one-time passwords, device ID, biometrics, etc.)
Never divulge your user name or password to a third party.
Avoid clicking on dodgy links or installing unauthorized software.
Educate staff on fraud awareness and prevention techniques to protect themselves from phishing attempts and malware infections caused by hazardous internet usage.
Set up rules for systematic and manual fraud protection across your company, such as restricting administrator rights and using tight password requirements.
Implement restrictions on the flow of funds, such as transaction limits and multiple approval processes, to prevent illegal transactions.
Avoid transmitting sensitive financial data over unencrypted email, which is unsafe and vulnerable to hacking. Accounts should be reconciled regularly, and notifications should be used to notify you when transaction status changes or unusual activity occurs.
Banking fraud is a widespread phenomenon. It has a significant and detrimental impact on every country’s financial industry. Therefore, Rewterz and Kaspersky have launched a Platinum Partnership to enhance effective security solutions and increase visibility.
Kaspersky offers fraud prevention solutions that assist in defeating frauds and ensures a flawless digital experience for their clients.
Kaspersky Fraud Prevention solution helps enterprises find the happy medium between the usability and security of digital services by defeating fraud and ensuring a flawless digital experience for their clients.