Tags: bank fraud
The Financial Services Information Sharing and Analysis Center (FS-ISAC), which works with the Department of Homeland Security, has released a study indicating that attacks on customer bank accounts have increased considerably in recent years.
The FS-ISAC, in collaboration with the American Bankers Association, surveyed large financial institutions to collect data on fraud attempts. The responding banks reported a combined 314 break-in attempts in 2011, up from 239 in 2010 and 87 in 2009.
Roughly one third of these attempts were successful in fraudulently transferring money out of hacked customer accounts, with institutions losing a total of $777,064, which is actually a decrease from $3.12 million in 2010. Customers lost only $489,672 in 2011, down from $1.16 million in 2010.
While less money was ultimately siphoned from banks and customers than in past years, there are new attack strategies on the horizon, which may push these numbers up in 2012. Threats, defenses, and vulnerabilities continually emerge, so stay tuned as we track the shifts in our evolving security landscape.
When asked what they were doing to prevent fraud and theft, banks’ three most common responses were:
- Increased customer education
- Multi-factor authentication
- Anomalous behavior detection
This year, the FFIEC updated the security requirements recommended for banks. One of the recommendations encourages financial institutions to employ complex device identification. Oregon-based security firm iovation goes a step further offering device reputation technology, which builds on device identification by offering real-time risk assessments, exposing any history of fraud associated with a particular device or group of devices, and investigating relationships between devices and accounts that have been associated with fraud in order to expose fraudsters working in cahoots to steal from online businesses.
ROBERT SICILIANO, CEO of IDTheftSecurity.com is fiercely committed to informing, educating, and empowering Americans so they can be protected from violence and crime in the physical and virtual worlds. His "tell it like it is" style is sought after by major media outlets, executives in the C-Suite of leading corporations, meeting planners, and community leaders to get the straight talk they need to stay safe in a world in which physical and virtual crime is commonplace. Siciliano is accessible, real, professional, and ready to weigh in and comment at a moment's notice on breaking news.
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