Financial Institutions Got to Watch Out for Cyber Attacks

Hi guys,

The latest ThreatMetrix Cybercrime Report suggests that a major financial institute might get hit by cyber criminals this year.

ThreatMetrix Digital Identity Network revealed a 40% increase of cybercriminal activities targeting the financial sector by analyzing more than 15 billion transactions in the past 12 months.

During the last three months alone, 21 million fraud attacks and 45 million bot attacks were detected. bot attacks is the biggest emerging threat for financial institutions.

A worst case scenario would be to see a major bank or financial institution paralysed for days, costing millions – if not billions – of pounds of lost business.

“A trend in our latest report shows bot attacks as the biggest attack vector to financial businesses globally… Bots and other sophisticated attacks, such as malware, have determined strategies to mimic the behaviour of authentic customers to bypass traditional security defences. This has serious implications for businesses across industries and geographies, as bots are difficult to detect and can cost billions in losses,” said Vanita Pandey, senior director of strategy and product marketing at ThreatMetrix.

Mobile usage and attacks targeting both online lending and alternative payments are also on the rise.

Online lending provides a way for the unbanked and under-banked to gain access to obtain loans within a few days, and now has become a top target for cyber criminals.

Stephen Topliss, vice-president of products at ThreatMetrix said, “Online lending is a hotbed for fraud because it is a less secure channel and an attractive target for attackers. They are also working with much faster transaction cycles than traditional lenders,” he said, adding that mobile also opens the door for the unbanked and under-banked to easily and conveniently gain access to loans from online institutions and small lenders.

During the last quarter of 2015, nearly 58 million attacks on e-commerce merchants  were detected and stopped by the ThreatMetrix Digital Identity Network.

According to the ThreatMetrix analysts, as retailers look to build trust and long-term relationships with consumers, attempted log-in attacks, which are largely carried out by bots have increased and these attempt to compromise consumers’ stored financial information. The challenge for retailers, is stopping bots while also avoiding “friction” in the online shopping experience for the customer.

According to ThreatMetrix statistics, mobile transaction volume reached up 200% in the last quarter of 2015, compared with the same period the year before.

Over 350 million mobile devices were added to the ThreatMetrix Digital Identity Network in 2015, mainly due to mobile application downloads across industries. Mobiles have become an attractive target for cyber criminals with this growth.

This growth makes mobile an attractive target for cyber criminals, who use stolen identities and compromised devices from major data breaches to their advantage for financial gain, according to analysts.

“Global shared intelligence and a multi-layered approach to cyber security enable businesses to detect and stop mobile bot attacks, malware, device spoofing, jailbroken devices, rooting and other associated risks,” said Pandey.

“We now live in a digital-first world and will continue to see consumers turning to online channels and mobile devices for shopping, banking and other transactions… With such a high volume of connected consumers and devices, cyber criminals now have access to endless personally identifiable information at their fingertips. Businesses need to take a digital-first, holistic approach to cyber security to stay one step ahead of fraudsters,” said Topliss.

According to Topliss, businesses can use the power of digital identities and shared intelligence to analyse the connection between devices, locations and anonymised personal information to build a unified risk assessment across all digital channels.

Check out the full report at:

Source: Akati

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