68% of Banks Increase Fraud-Defense Spending as Account Takeovers Surge

Account takeover occurs when attackers steal customers’ login credentials and impersonate them to seize control of online or mobile banking accounts, potentially leading to unauthorized transfers and personal-data breaches. Such third-party fraud, perpetrated by external criminals, now accounts for 71% of incidents. That has elevated fraud prevention from a compliance expense to core infrastructure underpinning bank operations and customer trust.

The latest report shows that 68% of surveyed banks are increasing their fraud-defense budgets and expanding the use of machine learning and behavioral analytics to identify unusual login, device and transaction patterns. Available information does not identify the organization that published the report, its exact publication date, the number of banks surveyed or the amount of additional spending. The key figures that can currently be confirmed are therefore 68% and 71%.