When 58% of all digital transactions including logins, payments, and account creations are originated from mobile devices having a 44% rise a fraud attacks on mobile transactions an alarming statistic. This information coming from analysis performed by ThreatMetrix took a look at 17.6 billion transactions during the first half of this year.
Also according to ThreatMetrix, “Payments transactions continue to be the most vulnerable, however, with the percentage of financial services login attacks increased 40% since last quarter overall, and 200% for mobile transactions, indicating a potential focus on account takeovers using social engineering and remote access attacks.”
This analysis performed by ThreatMetrix also gives credence to a recent Mercator advisory report titled, Digital Banking: Improvements Needed to Compete with Fintech, by Karen Augustine that showed when it comes to mobile banking consumer confidence peaked in 2016 at 45% and today we’re back to 2013’s 33% consumer confidence.
One of the primary reasons for this increase in fraudulent attacks is the increase in bot usage. According to ThreatMetrix bot attacks had a significant rise in the second quarter of 2018 of 60% to 1.2 billion. This data is a fascinating statistic as it goes to show that fraudsters as well are using The same cutting-edge technology such as AI and machine learning applied to prevent fraud, to create it.
As fraudsters continue this cat and mouse game, it will be critical for financial institutions to either partner with an organization specialized and fraud prevention or implement cutting-edge machine learning fraud models as fraudsters will continue to test for vulnerabilities on a large an automated scale.