Report Finds 93 Percent of Fraud Attacks Occur Online

By   ISBuzz Team
Writer , Information Security Buzz | Jun 02, 2021 04:12 am PST

Feedzai Financial Crime Report Q2 2021 Analyzes 12 Billion Global Transactions to Find Fraud Trends

  • Fraudsters Cash in on Lockdown Restrictions Lifting and Consumers’ Move to Internet Shopping, Banking, Payments
  • California Ranks as Top State for Fraud
  • Bank Fraud Attacks Increased 159 Percent from 2020
  • Android Mobile Users Experienced Nearly Twice as Many Fraud Attacks as iOS Users

 San Mateo, California – June 2, 2021 – Feedzai, the world’s leading cloud-based financial crime management platform, published its Financial Crime Report Q2 2021 today. The report is based on an analysis of more than 12 billion global banking transactions from January 2021 to March 2021. The report found fraud has dramatically increased as stay-at-home orders have lifted and transaction volumes rose up past pre-pandemic levels. The analysis highlights trends across geographies, banking, and mobile, but the central finding is clear: Fraudsters are finding their victims online. According to the report, U.S. consumers are beginning to spend more money in other countries and other states, indicating an increase in travel as pandemic restrictions loosened and vaccination rates increased. Combining the lift in travel with the trend in online attacks may shed light on why fraud hit some states harder than others, with a mix of top travel destinations and the locations of large eCommerce headquarters on the list.   The top five states with the highest rates of fraud were:

  1. California
  2. Florida
  3. Washington
  4. Arkansas
  5. New York

 Banking continues to be a primary channel for fraudsters to attack, across every platform. Online, in-person, or by phone, criminals are trying to gain access to Americans’ bank accounts. Banking fraud has increased by 159 percent since this time last year, with 93 percent of those attacks occurring online. With many bank branches closed or offering limited hours during the pandemic, banking has shifted primarily online. However, some scammers have taken the opportunity to launch attacks by phone, preying on the less technologically savvy. While the total number of telephone banking fraud attacks was small, they were up 728 percent since last year.  On mobile devices, Feedzai researchers uncovered that Android users are more likely to experience fraud. Android devices see 1.9 times more fraud than iOS devices, despite having only half the transaction volume of iOS. Mobile transactions are up since 2020, with more people paying businesses and peers via mobile payment apps. The report cites Android’s open approach as a possible cause, because it is more conducive to mobile malware, whereas Apple’s control of apps on the App Store makes it more difficult for malware to infiltrate that platform. “The world may have paused in 2020, but financial criminals did not,” said Jaime Ferreira, Senior Director of Global Data Science at Feedzai. “Reliance on digital forms of shopping, banking, and payments actually made it easier for fraudsters to attack more people, more quickly. As fewer consumers feel the need to walk into a bank branch or a mall we need to adapt financial services and payments to protect consumers. And as consumers, we need to continue to be vigilant and educate ourselves on how to stay safe.

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