Digital scams reported by banks during the first three quarters of 2024 have increased tenfold compared to the same period last year. and WWhile scammers are getting smarter, they’re not so much exploiting new technology as they are exploiting low-tech human error.
According to a recent report Cyber security firm BioCatch, who conducted the study Data from 170 banking institutions in the US and Canada.
The report, released last month, distinguishes between fraud and scams. While both are types of cybercrime designed to separate you from your dollars, fraud is characterized by an unauthorized user gaining control of your account and performing activity (such as purchasing items) without your permission or knowledge. . Scams occur when criminals trick people into making payments under false pretenses (such as by impersonating a friend claiming an emergency and needing money immediately).
So-called social engineering scams, when a fraudster tricks a victim into sending money, now represent 23% of all digital banking fraud. This category of digital crime includes phishing, vishing (using voice messages instead of email to lure victims) and phishing (using SMS or text messages for the same goals).
Tom Peacock, director of global fraud intelligence at BioCatch, said banking institutions have strengthened their cyber security infrastructure to the extent that criminals now find it easier to manipulate a person than a piece of computer code. told CNBC.
“Fraudsters have realized that humans are the weakest link,” he said.
Counterfeit scams and purchase scams are two particularly common ways victims are tricked, the report says. It says peer-to-peer network Zelle, whose corporate parent is owned by a consortium of big banks, is popular with crooks. (FTC shows the data PayPal and the Cash app are two other popular targets for scammers, so it pays to be vigilant no matter which service you use.)
Despite banks’ investments in technology to thwart bad actors, some regulators think they can do more to protect their customers from fraudsters. Consumer Financial Protection Bureau (CFPB) is watching How well banking giants JPMorgan Chase, Bank of America and Wells Fargo protect customers using Zelle. A Senate report Since July found that, while customers of these banks lost a combined $166 million to fraudsters last year compared to Zelle, Banks reimbursed only $64 million in fraudulent transactions. This is 38% of their losses.
How to protect yourself now
While lawmakers consider requirements for banks to improve customer protection, in the meantime you can help protect yourself from digital criminals.
The Cybersecurity and Infrastructure Security Agency, which is part of the US Department of Homeland Security, Recommends That people engage in due diligence before responding to unusual or unsolicited emails. You should also…
- Verify that the sender’s address is valid. Phishers often use email addresses similar to official addresses but slightly different. Small differences in spelling or company names in which letters are omitted may, at first glance, appear to come from genuine business accounts.
- Avoid clicking on suspicious links. If you hover over a URL in the body of an email and you see that the text doesn’t match the words printed in the body of the email, you’ve taken yourself to a fake company’s website and stolen personal information. Can be tricked into giving.
- Be skeptical of messages with generic greetings and signatures, or poor grammar and spelling.
- Do not download attachments sent in unsolicited messages. The agency says cybercriminals often use attachments to plant malware on victims’ computers.
The agency also suggests that any request for money or financial information be verified with the purported sender using separate means of communication; Say, search the Internet for a company’s billing department phone number instead of calling the number in an email.
A final word of warning: don’t rely on your phone to keep you safe.
BioCatch found that nearly a quarter of unauthorized-use fraud in North America is committed on “trusted” devices, meaning devices you use often (you usually have “remember me on this computer” or this will be asked to check a box like .Language to confirm the device status). When it comes to scams, the figure is much higher, with nearly three-quarters being committed on trusted devices.
