BANKS FACE URGENT NEED FOR CYBERSECURITY UPDATES AS FRAUD THREATS EVOLVE

One Billion Users at Risk of Data Compromise

Recent statistics reveal that a staggering one billion users are at risk of having their personal data compromised. As technology and automation continue to play a more significant role in our lives, it is essential for banks to prioritize cybersecurity updates to protect against emerging threats.

AI-Powered Banking Raises Concerns about Compliance and Fraud

The increasing use of artificial intelligence (AI) in banking has raised concerns about compliance and fraud. Banks must demonstrate transparency and accountability in their use of AI, ensuring that decisions are made ethically and with the highest level of security.

Modern Technologies Provide Enhanced Security

In response to these challenges, many financial institutions are turning to modern AI-powered technologies such as biometrics to ensure customer protection while delivering a human-like experience. Biometric engines can authenticate users instantly based on voice characteristics, eliminating the need for complex passwords and providing enhanced security.

Fraud Threats On The Rise

Sophisticated Cybercrime Techniques Exploit Vulnerabilities

Cybercrime is becoming increasingly sophisticated, with fraudsters using advanced techniques to exploit vulnerabilities in automated processes. According to a report by Lexis Nexis, digital lenders have seen a 143% year-on-year increase in monthly fraud.

Bots Target Business Logic Vulnerabilities

As bots become more advanced, they are expected to target business logic vulnerabilities in various industries, including financial services. Cryptocurrency exchanges and wallets are also becoming increasingly vulnerable to attacks, with millions of dollars potentially at stake.

Buy Now Pay Later (BNPL) Fraud to Emerge

BNPL Services Face Growing Concerns

The use of Buy Now Pay Later (BNPL) services has skyrocketed in 2021, but the dark side of this trend is expected to emerge in 2022. With cash-strapped individuals attempting to get away with first-party fraud using these services, tackling all types of BNPL fraud will be crucial.

Deepfakes and Auto-Diallers: A Dual Threat

AI-Generated Attacks Pose Significant Risks

A rise in deepfake attacks is predicted, where AI is used to emulate corporate leaders’ signatures. This method has already been successfully used in a $35m theft from a bank based in the UAE. Financial institutions must take note and ensure their security methods are not over reliant on any single technology solution.

Conclusion

The need for cybersecurity updates in banking is urgent. With fraud threats evolving rapidly, banks must prioritize transparency, accountability, and AI-powered technologies to protect customers’ personal data. By embracing modern technologies and staying ahead of emerging threats, financial institutions can ensure the security and integrity of their operations.