Banks are reporting a tenfold surge in digital scams, cybersecurity firm BioCatch says
U.S. and Canadian banks reported a tenfold surge in digital scams this year as criminals flock to techniques that rely on duping customers into sending them money, according to cybersecurity firm <a href=«https://www.biocatch.com/behavioral-biometrics-solution?utm_term=biocatch&utm_source=adwords&utm_medium=ppc&utm_campaign=Biocatch-Brand-Search-NAM-ENG&utm_content=g&hsa_acc=8099910299&hsa_net=adwords&hsa_cam=19253843024&hsa_tgt=aud-1932812498097:kwd-386778004221&hsa_kw=biocatch&hsa_ver=3&hsa_mt=e&hsa_grp=147848634158&hsa_src=» https: target="_blank">BioCatch
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The sharp rise in reported scams from the first three quarters of 2023 comes as banks have put in place more controls to prevent account takeovers and other forms of fraud, according to BioCatch Director of Global Fraud Intelligence Tom Peacock.
«Fraudsters have realized that the humans are the weakest link,» Peacock said. «It's easier to convince a human to do something through manipulation than it is to try and circumvent a technological control.»
BioCatch, a Tel Aviv, Israel-based firm that uses behavioral data from mobile apps and websites to help banks distinguish between real users and criminals, provided its findings to CNBC ahead of a report that culled information from 170 U.S. and Canadian institutions. The company said American Express, Barclays and HSBC are among its clients.
Banks are under pressure to kick criminals off their platforms and compensate more victims as regulators and lawmakers focus on the harm done by digital scams. JPMorgan Chase, Bank of America and Wells Fargo have said the Consumer Financial Protection Bureau may punish them for their roles in the giant Zelle payments network. Customers of the three banks reported a combined $166
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