BioCatch, a global leader in digital fraud detection powered by behavioural biometric intelligence, has unveiled its anticipated 2023 Digital Banking Fraud Trends in Latin America (LATAM) report.
The report offers an in-depth understanding of the latest risks and prevention strategies for the banking industry in the region, specifically how and where cybercriminals are using social engineering tactics, including voice and investment scams, to defraud victims.
Key report findings:
- Social engineering attacks surge: A concerning 33% of all fraud cases in 2023 can be attributed to social engineering attacks. Sharp rises were particularly evident in Mexico, Brazil, Chile and Argentina.
- Stolen device cases almost double: The first half of 2023 saw a shocking 90% surge in stolen device cases compared to the same period in 2022.
- Mule accounts double in number: BioCatch observed a 100% spike in reported mule accounts, emphasising the mounting financial crime challenges facing the retail banking sector.
- Wide-ranging scamming techniques: The report highlights novel scams such as the ‘WhatsApp family scam’ and ‘investment scams’ that are rapidly gaining traction in LATAM.
- Innovative criminal methods: Unconventional methods like ‘shoulder surfing’ and ‘facial recognition bypass’ have emerged, further complicating the security landscape.
- Banks adopt advanced security measures: With the accountability often falling upon banks for customer losses, there’s a marked shift towards adopting state-of-the-art solutions like Machine Learning and behavioural biometric intelligence.
BioCatch’s report underscores the urgent need for banks to bolster their fraud defences. With victims increasingly looking to their banks for compensation and protection, it’s paramount for financial institutions to integrate advanced solutions that not only detect but also prevent these ever-evolving threats.
