"But this does not mean more traditional financial crimes are being left by the wayside. Instead, FIs around the world are being forced to wage a war of many fronts - battling check fraud, as well as account takeovers (ATOs), social engineering campaigns, authorized push payment (APP) scams, first party fraud, and a raft of attacks on digital payment channels."
"The Shifting Tectonics of Fraud Financial criminals are strikingly adaptable. When regulatory measures and systemic controls fall into place to protect one area of payments, criminals simply shift their focus to the weaker link in the chain. This is apparent in the cross-border space, with the rise in domestic pre-payment checks driving criminals to exploit regional disparities in jurisdictions, languages, and banking systems to extract money from remittances, for example."
Fraud in financial services is escalating as bad actors obtain advanced tools like AI through dark web marketplaces. Annual U.S. fraud losses are estimated between $550 billion and $750 billion, and each dollar stolen costs financial institutions $4.41. Banks face a multi-front battle against check fraud, account takeovers, social engineering, APP scams, first-party fraud, and attacks on digital payment channels. Criminals adapt by shifting to weaker payment links and exploiting cross-border regulatory, language, and jurisdictional disparities to siphon remittances. Checks remain a favored target, with 63% of organizations reporting check fraud in 2024 and projected losses rising toward $24 billion.
Read at Securitymagazine
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