Banking Fintech News

Financial Frauds and Digital Safety Continue to Hound Banks

Financial Frauds and Digital Safety Continue to Hound Banks

Online fraud and financial crime prevention platform, SEON has released its latest ‘Global Banking Fraud Index’, which analyzes the cost of fraud to banks and other financial institutions around the world in 2023.  

Notably, the new review by SEON highlights the following:  

  • The value of the global neobank market rose nearly $20 billion over 2022 despite one of the most tumultuous years in banking history.   

  • Around 36% of all financial institutions experienced card fraud in 2022, which is a 26% increase on the year prior. 

  • US lenders report that 75% of all fraud losses are related to consumer phishing, with other financial services reporting those cases at 66%.

As the world turns increasingly towards fully digitized banking experiences, fraudsters are finding new digital lockpicks to crack electronic locks they face when accessing, buying, and exchanging money online. Now, online fraud and financial crime prevention platform, SEON has published its latest ‘Global Banking Fraud Index 2023’, which breaks down the biggest banking fraud trends affecting the market over the past 12 months.

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From the specific methods, locations and actions that get employed, as well as the overall impact that fraud is having on the banking sector, SEON’s comprehensive index of fraud threats in the banking sector is now available to read for free on the company’s website. Though most data sourced refers to UK and US sources, SEON’s report also includes insights into fraud trends and neobank adoption rates around the rest of the world.

As the report indicates, the number of monthly fraud attacks on banks earning more than $10 million in annual revenue has shown a consistent increase year-on-year. Likewise, the report highlights that 84% of companies with revenues of $1 billion or more have had more than 100 payment accounts targeted by fraud in the past year. Despite this, only 65% of companies experienced fraud in 2023, which is the lowest rate since 2014.

Speaking on the new report, Tamas Kadar, CEO and co-founder of SEON commented: “It’s been an interesting year for the banking sector, but despite a few bumps in the road there’s clear evidence the industry is moving in the right direction. However, to ensure this momentum can be sustained, those working within traditional banks, as well as neobanks must be highly vigilant around the growing risks associated with fraud.

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“If this doesn’t happen, institutions risk monetary and reputational damage because of fraud. This is an ever-present threat, with 71% of financial institutions reporting a security breach from Business Email Compromise last year alone. Thankfully, as well as compiling an index of today’s fraud pain points, companies like SEON are also on hand to provide businesses in the banking and neobanking sectors with new tools to fight back against the fraudsters.”

As with all previous reports, SEON’s ‘Global Banking Fraud Index’ is now available to download and read for free on the company’s website. The document forms part of the company’s comprehensive, and growing content portfolio, which contains articles, case studies and guides that cover a myriad of topics within the world of online fraud and financial crime prevention, as well as cybersecurity.

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