Thursday, May 24, 2018
To counteract the flood of attacks by fraudsters employing diverse and sophisticated tactics, financial institutions must be more nimble in addressing malware intrusions, exploitation of web-facing vulnerabilities and illicit access gained via third parties. That is according to a BAI Banking Strategies report, Fraud and cybersecurity: Staying steps ahead, which delves into the top cyber threats to FIs and strategies for diffusing them.
Among the threats cited, state actors, especially North Korea where state-sponsored hackers allegedly breached the SWIFT banking messaging system, are actively targeting victims in the Americas, Europe and Southeast Asia. Card skimming, and more recently jackpotting, threaten ATM security. Fraudsters posing as technicians are able to crack into ATMs using a generic key to retrieve cash at an estimated rate of 80 bills per minute.
Another serious threat is the exploitation of FI call centers, which handle approximately 36 billion interactions yearly and now account for nearly two-thirds of FI fraud. Last year, call center fraud represented $14 billion in fraud losses to FIs, the BAI noted, adding that in many of these incidents the contact centers were lightly defended.
Also on the rise is synthetic fraud, which involves fraudsters creating fake identities using untraceable Social Security numbers to defraud institutions. Rounding out the top five cyber threats is the exploitation of artificial intelligence, putting FIs on the defensive in terms of tracing and reacting to new forms of abnormal behaviors.
"It's a form of asymmetric warfare with the fraudster choosing the time, place and magnitude of their attacks," William Griffith, Senior Industry Consultant, Financial Services, Think Big Analytics, a division of Teradata Corp., wrote in the report. Thieves also create fake identities stringing together segmented information from actual people, such as date of birth from one person, the contact information of another, and so forth, the report noted.
In the BAI report, data security experts weighed in on how FIs can improve data security protection. One basic approach they suggested is to limit the amount of data used for analysis. Other measures included securing end points, constant surveillance of network systems and damage control once a breach has been detected.
The report also recommends eight steps designed to supercharge fraud detection techniques, which are summarized as follows:
To view the full report, visit info.bai.org/executive-report-fraud-cybersecurity.html?_ga=2.96692895.1629862793.1527095160-1136838619.1527095160.
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