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BioCatch predicts 10 cybercrime trends for 2020
- Deep fake technology will be used for identity theft: Deep fake technology that spoofs the human voice is already being used to attack call centers, or in business email compromise scams.
- In 2020, we should see the early signs of deep fake being used to defeat face recognition controls, including those using state of the art liveliness tests.
- The industry will have to come up with silent, behind-the-scenes controls that can offset the vulnerabilities of overt biometric authentication.
BioCatch, a leader in behavioral biometrics, today announced its
Cybercrime and Fraud Predictions for 2020 that show fraudsters are
keeping pace with the digital transformation and are a growing threat to
businesses around the world. These are the 10 biggest cybercrime and
fraud trends for the New Year, according to BioCatch Founder and Chief
Cyber Officer Uri Rivner.
Deep fake technology will be used for identity theft: Deep
fake technology that spoofs the human voice is already being used to
attack call centers, or in business email compromise scams. In 2020, we
should see the early signs of deep fake being used to defeat face
recognition controls, including those using state of the art liveliness
tests. The industry will have to come up with silent, behind-the-scenes
controls that can offset the vulnerabilities of overt biometric
authentication.
LiFi networks will be targeted by hackers: There’s a new,
promising high-speed Internet technology in town, and it’s visible light
based rather than radio wave based. While reaching full commercial use
is still a few years away, and the tech is limited to proximity use
given physical limitations on light movement, a network based on LiFi
should be as hackable as WiFi and might be more prone to physical
interferences. We should see the first demonstrations of LiFi hacks in
the new year.
UK identity databases will come under attack by fraudsters: Multiple
factors will drive criminals that target the UK financial sector to
boost their Account Opening Fraud activities; the success banks have in
fighting traditional fraud, the introduction of tighter controls over
social engineering, and the coming implementation of PSD2 all make
account takeover harder for them. To facilitate this expected boost,
hackers will focus their attention on UK identity databases, attempting
to get multiple data points on each UK citizen in a similar fashion to
what had been the state in the US in the last few years. In the US,
synthetic identity fraud is the fastest growing type of financial crime,
with an average charge-off balance per instance of $15,000, according
to a Federal Reserve study.
FinTech companies will be fraudsters’ next big target: While banks
and credit card issuers in the US have been stepping up their defenses
against account opening and account takeover fraud, the fintech sector,
which has largely escaped the wrath of fraudsters, will begin to see a
sharp increase in online fraud. Because they are less heavily regulated,
fintech companies are more agile and able to introduce new
functionalities. However, the lack of proper defenses and the fact that
they have no access to the banking sector’s fraud consortium databases
will make them far more exposed.
Chatbot and voice assistance
payment fraud will rise: Many financial institutions are beginning to
deploy AI-based customer assistance tools, such as chatbots and voice
based interfaces, to broaden their offerings beyond traditional online
and mobile channels. As soon as those new channels begin to offer full
functionality – say, move money from a user’s account – they’ll be
targeted by criminals and will need to be protected against account
takeover. Researchers have already proven that lasers can be used to
spoof voice commands in physical voice assistance devices, and it would
be even easier to attack their virtual equivalents.
eComm fraud AI models will become half-blinded: One of the unspoken
secrets of AI is that it’s only as good as the tagged data that is fed
to it. With the increase of account opening fraud, a huge amount of
eComm fraud is going to come not from compromised credit cards, but
rather new credit and debit cards that are opened online using identity
theft. In these cases, there are no chargebacks, as no real user will
call to complain. The result is that AI models will become half-blinded.
The criminal patterns that AI models use to pinpoint fraud will be
suppressed by genuine confirmations after account opening, as criminals
use the fraudulent account to make purchases, just as a genuine user
would.
AI will help prevent subscription services fraud: The big content
streaming companies have formed an alliance designed to fight password
sharing and criminal offerings of compromised passwords. Unfortunately,
device-based and location-based controls are no longer holding as
technologies to spoof devices and geo-location are readily available.
New technologies such as behavioral biometrics and unsupervised anomaly
detection AI will prove to fare much better against misuse of
subscription services.
Zelle fraud levels will surge: As many regional banks and credit
unions are adding Zelle P2P capabilities to their online and mobile
banking, criminals are beginning to single out the US as a new land of
opportunities. Well-proven social engineering techniques are already in
use, and attacks will escalate and quickly adapt as new controls are
added – with the result of real users suffering from higher friction
while fraud levels surge.
Selfie biometric data will be the new dark web money maker: There’s
already a vibrant dark web trade in personalized biometric data, and
that will continue to grow in 2020. More websites and applications are
turning to selfie-based verification and more online account opening
flows are moving from obsolete controls, such as Knowledge Based
Authentication, to more modern controls, like selfie-document matching.
Some criminals will focus on collecting data from open sources and
social media. Others will target – and already have targeted – users in
phishing campaigns designed to steal not just static credentials, but
also selfies and videos of the user’s face.
Another threat is that advanced malware capabilities, which are
currently in the hands of state sponsored actors and other high-end
players, will find their way to criminal hands and be used to break into
mobile device authentication.
Money mules will become an endangered species: In an era of easy
account opening fraud, why spend resources and take unnecessary risks by
interacting with mules? Money mules won’t go away in 2020, but
criminals engaged in cashing out compromised bank accounts will begin
shifting away from classic recruitment options and start using falsely
opened bank accounts instead. The ease of fraudulent account opening
will also help other crimes, such as money laundering and impersonating
the receiving end of P2P money transfers like Zelle.
Mr. Rivner says: “At the core of our cybercrime problem is a lack of
effective methods for establishing and verifying digital identity in the
constantly evolving digital ecosystem. New solutions are addressing the
challenges, replacing outdated approaches that rely on static
information with much more effective, multi-factor tools. Organizations
that are fastest to act with new, powerful, cutting edge fraud
prevention tools are the ones that will be least affected by fraudsters
in 2020 and beyond. “
Source: https://www.planetbiometrics.com/article-details/i/10769/desc/biocatch-predicts-10-cybercrime-trends-for-2020/
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