US and Canadian banks face tenfold rise in digital scams, new report reveals

US and Canadian banks face tenfold rise in digital scams, new report reveals
фото показано с : invezz.com

2024-11-13 18:23

Digital scams have surged tenfold this year in the US and Canada as fraudsters increasingly leverage social engineering to deceive customers, according to cybersecurity firm BioCatch.

This rise highlights the shift in criminal tactics that exploit human behavior rather than bypassing technology, posing significant challenges for financial institutions.

BioCatch’s latest analysis revealed a dramatic increase in digital scams reported by banks during the first three quarters of 2023.

As financial institutions implemented stronger technological controls to prevent account takeovers and other types of fraud, scammers adapted, using psychological manipulation to trick customers into transferring money themselves.

The Tel Aviv-based BioCatch, known for its use of behavioral data to identify fraudulent activities on banking platforms, compiled its findings from 170 US and Canadian institutions.

Prominent financial firms such as American Express, Barclays, and HSBC are among BioCatch’s clients.

Banks are under increasing pressure from regulators to prevent digital fraud and compensate victims.

This regulatory focus has intensified as digital payment networks like Zelle become key targets for scammers.

In 2023 alone, customers at JPMorgan Chase, Bank of America, and Wells Fargo reported combined fraudulent Zelle transactions totaling $166 million.

The Consumer Financial Protection Bureau (CFPB) has indicated potential penalties for these banks regarding their role in the Zelle network.

Social engineering scams, where criminals use manipulative tactics to persuade victims to transfer funds, have been on the rise over the past five years.

However, the trend has accelerated over the past 18 months. Zelle, favored by fraudsters due to its quick and efficient payment system, has been central to this uptick. “When social engineering scams really started to take off in the US, it kind of coincided with Zelle,” Tom Peacock, BioCatch’s Director of Global Fraud Intelligence said.

“Platforms like Zelle are enabling fraudsters to be a lot quicker and more successful.”

In response, Zelle’s owner, Early Warning Services, stated that while overall transaction volumes increased in 2023, reports of scams and fraud fell by nearly 50%. They emphasized that only a small percentage of transactions are disputed as fraudulent.

Peacock pointed out that part of the rise in reported scams is due to better detection by banks, spurred by heightened regulatory pressure.

A shift in criminal strategies is also evident in the decline of fraudulent new account openings, which fell by 59% among BioCatch’s clients.

Instead, scammers have turned to taking over existing accounts, with reported cases of such fraud tripling in 2023.

This change underscores the evolving nature of cybercrime, where fraudsters continuously adapt their methods to bypass enhanced security measures.

As digital fraud continues to evolve, US and Canadian banks face mounting challenges to protect their customers and maintain trust amid increasing scrutiny from regulators and lawmakers.

The post US and Canadian banks face tenfold rise in digital scams, new report reveals appeared first on Invezz

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Digital Rupees (DRS) на Currencies.ru

$ 6.38E-5 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $6.38E-5 - H: $6.38E-5
Капитализация $32.611k Rank 99999
Доступно / Всего 510.803m DRS

digital scams rise tenfold biocatch exploit human

digital scams → Результатов: 113


Seized Alameda Funds On The Move: US Gov’t Shifts Additional Crypto Assets

The US government has swapped its ANT tokens for more liquid Ethereum ahead of a planned crypto phaseout. Related Reading: Did YouTuber MrBeast Make $23 Million From Crypto Scams? Shocking Allegations Emerge The government-controlled crypto wallet that holds nearly $974,000 worth of digital assets has, for the first time in almost 24 months, been activated, […]

2024-11-2 19:30


Swipe Right For Scams? Canadian Authorities Warn Of Rising Crypto Frauds On Dating Apps

As summer heats up, so does the activity of crypto scammers on Canadian dating apps and websites. The Canadian Anti-Fraud Centre (CAFC) has reported a troubling rise in romance and investment scams, also known as ‘pig butchering’ targeting individuals on dating platforms, involving sophisticated schemes that leverage cryptocurrencies.

2024-5-30 03:00


Chase to block UK customers crypto-related transactions from October 16

Digital banking giant Chase U. K. said it will “decline” crypto-related payments made by its users starting October 16. In emails sent to customers and obtained by CryptoSlate, the bank stated that its decision would help its users keep their “money safe from frauds and scams” as fraudsters increasingly relied on cryptocurrencies to steal from people.

2023-9-27 17:00


Facebook Thailand Operations In Jeopardy Due To Claims Of Crypto Scams, Deceptive Ads

To take action against crypto scams, Thailand is on the brink of unleashing a dramatic move against tech titan Facebook. The Ministry of Digital Economy and Society (MDES) has unveiled a formidable plan to obtain a court-issued shutdown order against Facebook, unless the social media giant takes swift action to quell the surge of fraudulent […]

2023-8-22 20:00


Twitter Scam Infestation: How AI Tracked 95,000 Crypto ‘Free Giveaway’ Schemes

Crypto and Twitter scams have met their digital match as a team of researchers hailing from San Diego State University in California unveils an ingenious artificial intelligence (AI) tool.  Crafted with precision, this innovative system, which they call GiveawayScamHunter, is capable of ferreting out, monitoring, and laying bare the intricate web of free cryptocurrency giveaway […]

2023-8-12 13:55


Today’s Unprecedented Happenings in the World of Digital Assets

“Crypto Chronicles Unveiled: South Korea Enacts New Law to Safeguard Investors, Australia’s Crypto Association Urges Collaborative Efforts against Scams, and UK Crypto Bill Nears Final Approval” South Korea Takes a Stand: New Crypto Legislation Passed to Safeguard Fair Trading In a bid to shield cryptocurrency investors from potential setbacks like the recent Terra ecosystem incident […] Сообщение Today’s Unprecedented Happenings in the World of Digital Assets появились сначала на Coinstelegram.

2023-7-1 16:40


REV3AL – NFT and Digital Asset Authentication Technology Launches on KuCoin June 30th

REV3AL, a new and innovative cryptocurrency project, comes at a critical time in the crypto sector when scams and fraud are on the rise. As a solution to the hindering growth of the digital media market, REV3AL offers digital copyright protection and anti-counterfeiting solutions for artists, creators, and intellectual property owners.

2022-6-29 13:15


UAE Introduces New Law to Combat Crypto Crime, Allows Licensed Cryptocurrency Offering & Promotion

The United Arab Emirates (UAE) is introducing new rules to promote cryptocurrency development while curbing digital currency scams targeting investors in the country. Under the new rules, crypto scammers will face prison time for up to 5 years and a penalty of up to AED 1 million (just over $272k), starting January 2, 2022.

2021-12-30 20:14


Фото:

Popular Browsers Like Google Fail to Catch Copycat Crypto Sites, Scams Make the Top Results

As the digital asset economy grows popular and a number of crypto companies become well known, copycat scammers appear in greater numbers. There are a number of websites that are clones of the official web page from companies that provide mining device sales, wallets, full nodes, paper wallet tools, and popular trading platforms.

2020-12-13 09:00