HomesecurityBank fraud: Increase by 159% from the last quarter of 2020

Bank fraud: Increase by 159% from the last quarter of 2020

Attempts at bank fraud increased 159% from the last three months of 2020 to the first quarter of 2021, as fraudsters tried to hide their attack on legitimate online activity, according to the Feed. The data used for banking fraud in the report Financial Crime Report Q2 2021 Edition of the company include 12 billion worldwide transactions between January-March 2021.

The overwhelming majority (93%) of bank fraud cases during this period were online. However, while the telephone banking transactions accounted for less than 1% of total transactions in the first quarter of 2021 rose fraud attempts through this channel against 728%, from the previous quarter.

Read also: Twenty-two Americans accused of card-skimming fraud!

Between basic tactics used by cybercriminals to defraud their banks and customers, including withdrawal of account (42%), followed by new account fraud (23%), on impersonation (21%), the shopping scams (15%) and Phishing (7%).

Bank fraud
Bank fraud: Increase by 159% from the last quarter of 2020

Η withdrawal of account is usually the result of a scam, in which a malicious agent acquires the online banking log-ins of a victim. In her case impersonation, a scammer pretends to be authorized to access a victim's bank account, of course without the other's knowledge.

Overall, the card-not-present (CNP) accounted for 83% of all fraud attempts despite 18% of transactions with cards. Part of this may be due to the availability of EMV cards, which has made in-person fraud more difficult with the use of cloned cards.

See also: Police arrest eight suspects in smishing scams!

This may also be responsible for POS malware distribution designed to steal card data as they are entered by customers in stores. This was especially common in the United States.

Bank fraud
Bank fraud: Increase by 159% from the last quarter of 2020

Feedzai linked the increase in fraud to the wider increase in trading volume worldwide. The company also said that the trading volume for all areas is now higher compared to before the pandemic.

Proposal: E-commerce: Fraud losses expected to exceed $ 20 billion in 2021

The company report states the following: "As more vaccinations are given, we expect that changes, e.g. more travel and a consumer base that looks more like a pre-pandemic world will be reflected in the countries. But that means the already high levels of fraud will continue to rise. "It is not just consumers who want recovery, but also fraudsters."

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