Stay home, but also take care of the money in the accounts: how fraud multiplied during the pandemic

In the pandemic, many people work from home, and internet consumption has increased enormously. But hackers also take this into account.

A society adapted to the new technological times does not mean that it is safe. As technological solutions have multiplied, hacker methods have also become more adapted and sophisticated. In the pandemic, according to a study by Javelin Strategy & Research and SAS, behavioral changes also led to these methods.

Many people have spent more time on the internet, online payments have been made and many digital solutions have been used. All this time, however, fraud has increased by billions of dollars worldwide.

More global pandemic fraud

The authors of the study note that the hackers were not in vain.

“From the perspective of monitoring online transactions, the year 2020 was completely atypical. Fraud attempts have increased by almost 35%, which shows that criminals are more active in attempts to defraud digital channels. Financial institutions are therefore required to redefine how they protect themselves, but also their customers, from the risks associated with these changes, respectively to adopt the available anti-fraud technologies as soon as possible “, said Ștefan Baciu, Country Manager SAS Romania & Moldova.

The new normal means digital and adapted solutions. But changing behavior and increasing the number of online payments, for example, also leads to greater exposure. And cybercriminals are on the lookout.

“The impact of this wave of fraud is felt in different ways due to the integration of digital payments in an accelerated way globally. Effective tackling the problem requires the use of a broader set of digital data and a multi-level hybrid approach to making effective decisions both during and after the pandemic. Advanced analysis is the common denominator that provides agility in the challenges of the future, “said Stu Bradley, vice president of global intelligence and security at SAS.

In this context, payment processors need to keep up and ensure an extremely secure environment.

“The transition from omnichannel to multichannel, combined with the sophisticated nature of the tools available to criminals, provides financial institutions with the necessary map to build short- and long-term fraud mitigation strategies. Without technological and operational improvements, financial institutions face significant reputational damage and financial losses. While some improvements can be implemented quickly, for immediate results, others will take months or even years to develop. The first critical step is to process all data flows in real time, along with identity management and transaction monitoring, not only to identify the attempted fraud, but to block it even before it occurs, “said Krista Tedder, Head of Payments. at Jevelin Strategy & Research

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