As of today, frauds continue to haunt the banking industry at an alarming rate. Without an immediate action against banking frauds, financial services can be in huge trouble that leads to their bankruptcy.
The bleak reality of digital banking is that it tends to attract cybercriminals. Based on Alloy’s 2024 Fraud Report alone, 35% of banks experienced over 1,000 fraud attempts last year, with 1 out of 10 receiving more than 10,000.
These numbers will unfortunately continue to rise, as long as there is no actual protection against these banking cyber threats. A financial service needs to know the best solution to detect and stop fraud from occurring.
Common Banking Fraud & Attack Types
There are many banking fraud types that can be done in the banking industry. However, account takeover (ATO) still remains the most common fraud being attempted on bank accounts, causing financial losses and reputation losses due to inaction.
To commit account takeover fraud, fraudsters steal the victim’s login credentials to gain unauthorized access to their account. They have various tricks up their sleeves to take over the victim’s account, such as:
Keylogging Attack
With spyware, fraudsters can easily perform keylogging, which is an attempt to steal sensitive data by recording keystrokes on the victim’s device. They can easily harvest passwords and PINs from doing this.
In order to do it, spyware needs to find its way to the victim’s device. Victims may unintentionally insert a keylogger into the device through the installation of an infected application or software.
Once installed, a keylogger monitors and records the keystrokes being made on the device, then sends the record to the fraudster. This is how a fraudster is able to access the victim’s account.
Man-in-the-Middle (MitM)
Fraudsters can also intercept the communication between the victim and the bank’s server. This banking cyber attack allows them to gain login credentials to access bank accounts. Here’s how it can be done:
- The fraudster set up a fake public Wi-Fi to trap the unsuspecting victim. Once the victim connects, the fraudster can intercept all the data that is being sent by the victim.
- The fraudster then steals information from the compromised communication. They may need to impersonate both sides to avoid any suspicions from the others.
- With the stolen information, the fraudster can finally access the victim’s bank account.
Overlay Attack
The next bank fraud scheme features a fake screen as a layer, known as an overlay attack. This banking cyber attack uses a malicious app that poses as a fake notification as a layer on top of a legitimate application.
By using this method, victims who may not have realized it will input their login credentials on the fake screen. The fraudster will again have unauthorized access over the victim’s bank account, as well as their sensitive data.
App Decompiling
More advanced fraudsters can commit an app forgery by reverse-engineering the banking app’s code to find vulnerabilities. Once they find the weak spot, they can exploit it to steal login credentials from anyone with the app.
This particular banking cyber attack is also dangerous due to its nature. It can silently destroy the trust and image that the financial services have built over time with their applications.
Keypaz: The Best Solution for Banking Fraud Prevention
Those fraud methods can bring a disaster to any financial services if left unattended. As frauds continue to evolve rapidly, financial services must stay prepared by having real-time banking fraud detection, such as Keypaz.
To combat these banking scams, Keypaz has not only real-time fraud detection but also device intelligence and biometric behavioral analytics. With such tools, Keypaz can help financial services combating frauds by:
- Identifying unusual activity patterns like sudden changes in login behavior or frequent location changes in login attempts, preventing ATO.
- Detecting rooted devices and malicious apps that could facilitate keylogging and overlay attacks by using screen sharing and debugging detection.
- Monitoring transactions like sudden large withdrawals from unusual locations and suspicious behaviors like multiple failed login attempts.
- Detecting code hacking like app tampering and app decompiling to prevent fraudsters from reverse-engineering bank apps.
- Creating automatic rules to flag and respond to potential attacks or suspicious device behavior. Keypaz has rule orchestration that allows financial services to respond to many banking fraud types automatically.
Without real-time protection and robust tools, financial services can’t withstand the frauds, thus facing loss and damaged reputation. Keypaz is the only thing that can stand between any type of business and this haunting disaster.
Key Takeaways
Keypaz can provide a solution to fight fraud in banking services with real-time detection that can prevent many types of fraud methods. With the right tools from Keypaz, financial services can stay in business for a long time.
However, you need to take immediate action before banking frauds begin to corrupt your financial service. Don’t wait until it’s too late by implementing Keypaz in your business now!