As Cyberattacks Accelerate Globally, Financial Services Take the Biggest HitDuring the first quarter of this year, 210 million cyberattacks occurred globally – a rise of 62 percent year-over-year. Attacks like that have left billions of records open to compromise as hackers use the so-called “dark web” to share personal identification information (PII), including social security numbers and payment card numbers. Unfortunately, financial services suffer the highest cost of cybercrime, according to a joint Accenture/Ponemon study. Most costly are denial of service, phishing, social engineering and insider attacks – the latter often engineered through phishing or social engineering that cons unsuspecting employees.
Card Fraud Migration Threatens Banks’ ReputationsFor every action, there is an equal and opposite reaction. - Sir Isaac Newton Fraudsters seem to live by a version of this rule as they continually discover new ways to circumvent roadblocks. In response to diminishing transactional card fraud opportunities at POS, fraudsters have eagerly pursued card application fraud. A recent Javelin report sponsored by FIS says the problem costs $1.7 billion worldwide. The number of victims of fraudulent card accounts also has exploded, growing 78 percent YOY to reach $1.6 million globally in 2017. Meanwhile, the time taken for consumers to resolve fraud more than doubled to 100 million hours between 2015-2017. With no liability protections, consumers spend the most time – 17 hours, on average – to resolve card application fraud. As a result, its victims are most likely to flee from their financial institution to another provider.
Account Takeover Fraud Rises RapidlyWhat happens when billions of records exposing PII are sold on the dark web? Account takeover attempts rise to astounding levels – increasing tenfold in 2017.
Invest Wisely in PreventionFinancial institutions cannot afford to take on the role of the “weakest link” for hackers. When it comes to card customers, fraud protection is the most influential driver of top-of-wallet status. Overall, cybersecurity investment is projected to rise by nearly 10 percent annually between 2015 and 2020 to reach $120 billion globally. Although financial institutions are increasing investment in security, it’s critical to use resources where they count most today while recognizing that cyber fraud is dynamic. Solutions to consider for the remainder of 2018 and 2019 include ones that:
- Help eliminate authentication risks associated with compromised credentials to mitigate account takeover and new account fraud
- Enable consumers to make secure transactions across multiple online accounts through a single registered identity, thereby providing better identity protection
- Enlist cardholders in the fight against fraud and protection of their payment data with real-time transaction alerts
- Use machine- learning technology to differentiate fraudulent from non-fraudulent transactions
- Provide keyword alerting when information relevant to the financial institution is discovered on the deep web.