The financial sector’s battle against fraud requires a dynamic and multi-faceted approach. As technology continues to advance, so do the tactics of fraudsters seeking to exploit vulnerabilities in the financial sector. The financial sector faces escalating threats in 2024, including deepfake fraud, phishing 2.0, blockchain exploitation, insider threats, and AI-powered fraud.
“In 2024, the financial sector faces escalating threats: deepfake fraud, phishing 2.0, blockchain exploitation, insider threats, and AI-powered fraud. Deepfake technology is increasingly sophisticated, posing a risk to identity verification systems,” said Shikhar Aggarwal chairman of BLS services.
Animesh Jha- Vice President, Engineering – Fraud & Risk Management, Wibmo, A PayU company shared the top five fraud trends anticipated in the financial sector this year and offered strategic insights on overcoming them.
1) Sophisticated Phishing Attacks
Mitigation Strategies:
– Implement multi-factor authentication to add an extra layer of security.
– Utilise advanced email filtering systems to detect and block phishing attempts.
2) Synthetic Identity Fraud
Mitigation Strategies:
– Leverage advanced identity verification tools with biometric authentication.
– Employ machine learning algorithms to identify patterns indicative of synthetic identity creation.
3) Mobile Banking App Vulnerabilities:
Mitigation Strategies:
– Regularly update and patch mobile banking applications to address vulnerabilities.
– Integrate behavioural biometrics for user authentication.
– Implement real-time monitoring for unusual activities and transactions.
4) Insider Threats
Mitigation Strategies:
– Enforce strict access controls and conduct regular access reviews.
– Foster a culture of security awareness and educate employees on the consequences of insider threats.
5) Ransomware Attacks on Financial Institutions
Mitigation Strategies:
– Regularly back up critical data and systems to enable swift recovery.
– Collaborate with cybersecurity experts to stay ahead of evolving ransomware tactics.
By anticipating and addressing these top fraud trends in 2024, financial institutions can fortify their defenses.
Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 20 Dec 2023, 07:36 AM IST