Combining all banking fraud - internet, telephone, and branch - attacks have grown 159% in Q1 2021 compared to Q4, 2020, according to Feedzai’s Financial Crime Report.
The cloud-based financial crime management platform has analysed over 12 billion global banking transactions from January - March 2021. The report released by the company identifies trends in spending and in fraud attempts to show that this past quarter, as consumer activities increased, fraudsters attempted to hide their fraudulent transactions in legitimate banking.
Online banking made up 96% of all banking transactions and it accounted for 93% of all fraud attempts in Q1 2021. In addition, telephone scammers upped their efforts, and the report shows a 728% increase in telephone banking fraud.
Android users are more likely to experience fraud. Of the total volume of fraudulent transactions, 34% were conducted on iOS, and nearly double (66%) were attributed to Android. Despite a disproportionately higher total transaction volume on iOS, Android devices still made up for two thirds of fraud attempts.
According to the official press release, top 5 banking scams included:
Account Takeover (ATO) (42%) - Fraudsters gain access to account credentials and take over the account, which often includes changing the password and address.
Account Opening Identity Theft (23%) - Fraudsters open accounts using stolen identities. Victims often become aware of this type of scam when debt collectors come calling.
Impersonation Scams (21%) - Fraudsters pretend to be a government official or some type of authority figure to gain access to an account or trick victims.
Purchase Scams (15%) - In purchase scams, buyers pay for items online that never arrive.
Phishing (7%) - Typically, scammers use emails that trick account holders into revealing personal information.
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