The most recent “Global Banking Fraud Index” from fraud protection software supplier SEON shows that banks are gradually becoming more in control of fraud, yet attacks remain a serious danger.
Fraudsters continue to develop new strategies to assist financial attacks and get around security measures as banking transactions become entirely digital. The cost of this fraud to banks and other financial institutions worldwide in 2023 was examined by SEON in its most recent research.
It has been discovered that the number of monthly fraud assaults on banks with yearly revenues of more than $10 million has steadily climbed year over year. The survey also notes that more than 100 payment accounts were targeted by fraud in the past year at 84% of businesses with revenues of $1 billion or more.
In contrast, card fraud affected almost 36% of all financial institutions in 2022, a 26% increase from the previous year. Consumer phishing-related fraud losses were for 75% of all losses recorded by US lenders, compared to 66% reported by other financial services.
Even though so many accounts were attacked, just 65% of businesses reported fraud in 2023, the lowest percentage since 2014. This means that, even though the numbers are still high and significant progress has yet to be made, we may be witnessing the start of banks tightening their grip on fraud. However, it is obvious that fraud-related issues are still far from being resolved, and losses may continue to afflict banks and other financial institutions for a very long time.
Despite 2022 being a particularly challenging year for the banking industry, the value of the worldwide neobank market increased by almost $20 billion.
“An ever-present threat” is fraud
The CEO and co-founder of SEON, Tamas Kadar, provided his opinion on the report’s conclusions. It’s been an intriguing year for the banking industry, but despite a few hiccups, there is undeniable evidence that the sector is progressing in the right path, according to Kadar. However, in order for this momentum to continue, employees employed by traditional banks as well as neobanks must exercise extreme caution over the rising risks of fraud.
Institutions run the danger of financial loss and brand harm due to fraud if this doesn’t happen. 71% of financial institutions reported a security breach via a compromised corporate email just last year, demonstrating the persistent nature of this problem. Fortunately, organizations like SEON are available to give firms in the banking and neobanking sectors additional tools to combat fraudsters in addition to developing an index of today’s fraud pain issues.