RESOURCES / CASE STUDIES & SOLUTION BRIEFS

Solution Brief: Online Banking Scams

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Online Banking Scams

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UK

One of the first European countries to adopt faster payments and with strong market penetration of online and mobile banking.

Mainland Europe

Several European banks are currently between stages two and three of their journeys. One Italian bank saw fraud increase 8,000% in one month after introducing instant payments.

United States

Some scams are still classified as first-party fraud, but we would expect similar increases in scams volumes as instant payments are rolled out.

Overview: Online Banking Scams

  • Fraud losses from scams are overtaking fraud losses from account takeovers.
  • Scams are hard to detect because they are initiated by the legitimate customer.
  • Darwinium combines machine learning with transaction intelligence, behavioral biometrics and victim propensity modelling to alter potential scams journeys in real time

Scams and Authorised Push Payments: A Summary

An authorised push payment (APP) is a form of social engineering where a customer is convinced into making an internet payment, generally to a money mule account. These deceptions are also commonly referred to by their more generic label of scams.

It’s no secret that fraudsters target easy money. As internet banking defenses have been strengthened to better identify instances of account takeover and identity fraud, the prime target is gradually migrating from banks to the customers themselves.

The scams evolution is, therefore, a logical progression of the online banking cycle, and goes some way to explain why countries with mature digital banking solutions are being hardest hit.

Why Are Scams Hard to Detect?

  • Sophistication of Execution
  • Customer Initiated
  • Facilitated by Faster Payments

Download the solution brief to discover the Darwinium Difference to Identifying and Preventing Scams.