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BizReport : Internet : June 25, 2021

Reports highlight how fraudsters are using pandemic against consumers, businesses

While the pandemic may have boosted overall ecommerce revenue for most businesses, there is a dark side to so much digital activity. Fraudsters have been using the pandemic against not only individual consumers but against businesses, and three new reports show how.

by Kristina Knight

First, according to researchers with Feedzai's Q2 Financial Crimes report 93% of financial attacks occurred online during the second quarter, which overall attempted bank fraud attacks up 159% since 2020, which lockdowns forced so many people online for all shopping activity.

Bank fraud attacks are coming by phone and in person, as well as online, but the online attacks are making up the bulk of attempts. This is likely due to the number of people shopping online, but the overall increase in using mobile phones and apps to pay for various purchases and services, especially for those using Android devices which have been shows to be more open to malware.

"The world may have paused in 2020, but financial criminals did not," said Jaime Ferreira, Senior Director of Global Data Science at Feedzai. "Reliance on digital forms of shopping, banking, and payments actually made it easier for fraudsters to attack more people, more quickly. As fewer consumers feel the need to walk into a bank branch or a mall we need to adapt financial services and payments to protect consumers. And as consumers, we need to continue to be vigilant and educate ourselves on how to stay safe."

More data from Feedzai's report can be accessed here.

Credential phishing is one of the key ways fraudsters are attempting to get sensitive information. According to new data out from Armorblox, fraudsters are using social engineering, brand impersonation, and workflow replication to imitate organizations and to gain access to financial information.

In one case, fraudsters hit more than 10,000 email inboxes with an impersonation of banker Wells Fargo, attempting to gain access to consumers' bank logins by using malicious links that led to fake web pages.

Full data from Armorblox's report can be found here.

It isn't only email that is suffering from fraud, however. DoubleVerify has found a growing problem within video advertising, with fraudsters hijacking CTV sessions. In March they uncovered what is believed to be the first server side ad insertion (SSAI) that hijacked CTV sessions and could have cost brands millions per month. The fraudsters operated by first purchasing real impressions and then inserting impression trackers for multiple ads.

According to DoubleVerify, theirvideo filtering product has helped brands and marketers reduce fraudulent video ad impressions by 62% since its launch in November of 2020.

Tags: Armorblox, consumer data, data fraud, data privacy, DoubleVerify, ecommerce, ecommerce data trends, ecommerce tips, ecommerce trends, Feedzai, phishing trends

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