Cyber Defense eMagazine July 2021 Edition

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Banking Fraud up 159% as Transactions Hit Pre-Pandemic Volumes Organizations and users should aggressively embrace passwordless authentication methods to establish a strong un-phishable relationship. By Rajiv Pimplaskar, CRO, Veridium The latest Feedzai Financial Crime Report Q2 2021 Edition which factors in some 12 billion global transactions between January-March 2021, shows that bank fraud is up 159%, including internet, telephone, and branch banking. Card-not-present (CNP) transactions were just 18% of all transactions, but drove 83% of all fraud attempts. The five most commonly attempted scams were Account Takeover (ATO)-up 47%; account opening identity theft-up 23%; impersonation scams-up 21%; purchase of goods that never arrived-up 15%’ and phishing scams-up 7%. A cyber and passwordless authentication expert with Veridium offers perspective. Cyber Defense eMagazine – July 2021 Edition 108 Copyright © 2021, Cyber Defense Magazine. All rights reserved worldwide.
The recent Feedzai report confirms several points regarding the industry’s hypotheses on financial fraud. First, as transaction volumes reach all-time highs, banks and insurance companies should brace for higher fraud volumes and proactively bolster their risk processes and customer identity and access management systems. Second, fraud vectors should be increasingly assumed to be multi modal as bad actors will often exploit channels with weaker Know Your Customer (KYC) verification processes, such as telephone banking or contact center, as seen by the high surge in fraud attempts from these channels. Sometimes even bank card fraud via traditional mail can manifest within the branch and digital channels for impersonation and Account Takeovers (ATO) scams. Finally, various forms of phishing, social engineering and Man-in-the-Middle (MITM) attacks can be highly effective at overwhelming a vast majority of conventional safeguards currently in place by the financial institution. Organizations and users should aggressively embrace passwordless authentication methods to establish a strong un-phishable relationship between the user’s designated authenticator and the bank systems. As identity becomes the new perimeter, strong customer authentication solutions such as Phoneas-a- Token and FIDO2 security keys are increasingly gaining popularity. Also, such authentication methods offer lower friction and can improve user experience and productivity. Fraud is Multi-modal, Constantly Evolves and Gravitates to the Weakest Channel With fraud costing the global economy over $5 trillion, financial services firms worldwide are focused on fraud prevention in a big way. In countries like the UK, fraud is currently the #1 crime – far outpacing all other crime categories! With cost containment being very important in driving shareholder value, fraud is a key area, which if not managed carefully, can quickly erode the bank’s earnings. Consequently, hundreds of millions of dollars are being invested and fraud defense systems are getting increasingly sophisticated. Customer education is also at an all-time high to ensure fraud awareness is top of mind, much like conventional wisdom of locking the front door to your house or not leaving valuables left in plain sight within your vehicle. However, fraudsters are also evolving at an alarming rate and continuously devising new approaches. For example, improved defense against ATO scams is being circumvented by a rise in authorized push payment fraud where an impersonator convinces the legitimate account owner to authorize a payment for a fake crypto currency investment, or a fake invoice. Often the account owner is coached regarding what to say if the bank’s fraud department contacts them and many times winds up taking sides with the fraudster against the bank’s investigators! From a bank’s perspective, this complicates matters significantly as apart from their usual screening, they must now also verify the legitimacy of the safe account where the payment is being wired. First party fraud is also on the rise. In several countries “money mules” are systematically recruited by organized gangs using a cover story promising quick monetary gain via social media with the objective of fraudulent account opening and laundering crime money. While several of the victims are college students and teenagers getting scammed, many do it for money. As controls over mobile and digital channels have strengthened, fraud has also shifted into the contact center where social engineering and MITM attacks can be highly effective at compromising traditional KBA (Knowledge Based Authentication). Cyber Defense eMagazine – July 2021 Edition 109 Copyright © 2021, Cyber Defense Magazine. All rights reserved worldwide.
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Colonial Key Business Pipeline, Les
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Ransomware, the Ultimate Cyber Thre
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@MILIEFSKY From the Publisher… Ne
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Welcome to CDM’s July 2021 Issue
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Cyber Defense eMagazine - July 2021
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Colonial Pipeline, JBS Cyber Attack
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is clear: Cyberattacks will continu
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of management complexity for any bu
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Flipping the Cyber Script Getting A
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Trust strategies, they will prevent
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The growing threat In the last 12 m
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Common Sense Cybersecurity Steps fo
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The next big thing: addressing remo
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Applying PR tactics is a new page i
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NATO to Consider Military Response
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The number of open positions in var
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3. Delivery - Transmission of the p
Page 57 and 58: Uncovering the Dark Side of the Col
Page 59 and 60: Energy and Utilities - You Have No
Page 61 and 62: a cyberattack that shut down approx
Page 63 and 64: Ransomware and the Cybersecurity In
Page 65 and 66: About the Author Jack Blount is Pre
Page 67 and 68: The airline industry’s poor recor
Page 69 and 70: Ransomware, the Ultimate Cyber Thre
Page 71 and 72: About the Author Yehudah Sunshine,
Page 73 and 74: A second reason for the increase in
Page 75 and 76: A Case of Identity: A New Approach
Page 77 and 78: Implementing a digital trust ecosys
Page 79 and 80: A 3-Part Plan for Getting Started w
Page 81 and 82: As threats continue to evolve, it
Page 83 and 84: 1. Endpoint and user protection Des
Page 85 and 86: The Risks of The Vulnerable Iot Dev
Page 87 and 88: Insecure Data Transfer and Storage
Page 89 and 90: Three Steps to Building Email Cyber
Page 91 and 92: Plan Ahead and Avoid Disaster The H
Page 93 and 94: NDR technology is built on three pr
Page 95 and 96: Hardware Trojan Detection By Sylvai
Page 97 and 98: the properties (user mode, memory a
Page 99 and 100: About the Author My Name is Sylvain
Page 101 and 102: outside coaches - to help them impr
Page 103 and 104: Tips for Avoiding Online Scams Duri
Page 105 and 106: Phishing Example 1 Phishing refers
Page 107: About the Author Cindy Murphy is th
Page 111 and 112: Why Cyber Risk Is the Top Concern o
Page 113 and 114: (BEC) attacks, also known as “fak
Page 115 and 116: What Educational Institutions Need
Page 117 and 118: Firewall Security VPN connectivity,
Page 119 and 120: Business Continuity: Where InfoSec
Page 121 and 122: ● ● ● ● How educated are em
Page 123 and 124: Biometrics Challenges By Milica D.
Page 125 and 126: Epic V. Apple Trial - Impact of Big
Page 127 and 128: About the Author Brad Ree is the Ch
Page 129 and 130: eaches because large amounts of hig
Page 131 and 132: • securing mobile and remote work
Page 133 and 134: This topic has great relevance beca
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Page 139 and 140: 1. Infosecurity Europe Where: Olymp
Page 141 and 142: leaders, and help each other advanc
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Page 153 and 154: You asked, and it’s finally here
Page 155 and 156: 9 Years in The Making… Thank You
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