Online fraud and financial crime prevention platform, SEON has released its latest ‘Global Banking Fraud Index’, which analyses the cost of fraud to banks and other financial institutions around the world in 2023.
Notably, the new review by SEON highlights the following:
- The value of the global neobank market rose nearly $20 billion over 2022 despite one of the most tumultuous years in banking history.
- Around 36 per cent of all financial institutions experienced card fraud in 2022, which is a 26 per cent increase on the year prior.
- US lenders report that 75 per cent of all fraud losses are related to consumer phishing, with other financial services reporting those cases at 66 per cent
As the world turns increasingly towards fully digitised banking experiences, fraudsters are finding new digital lockpicks to crack electronic locks they face when accessing, buying, and exchanging money online. Now, online fraud and financial crime prevention platform, SEON has published its latest ‘Global Banking Fraud Index 2023’, which breaks down the biggest banking fraud trends affecting the market over the past 12 months.
From the specific methods, locations and actions that get employed, and the overall impact that fraud has on the banking sector, SEON’s comprehensive index of fraud threats in the banking sector is now available to read for free on the company’s website. Though most data sourced refers to UK and US sources, SEON’s report also includes insights into fraud trends and neobank adoption rates around the rest of the world.
As the report indicates, the number of monthly fraud attacks on banks earning more than US$10 million in annual revenue has shown a consistent increase year-on-year. Likewise, the report highlights that 84 per cent of companies with revenues of US$1 billion or more have had more than 100 payment accounts targeted by fraud in the past year. Despite this, only 65 per cent of companies experienced fraud in 2023, which is the lowest rate since 2014.
Speaking on the new report, Tamas Kadar, CEO and co-founder of SEON commented: “It’s been an interesting year for the banking sector, but despite a few bumps in the road there’s clear evidence the industry is moving in the right direction. However, to ensure this momentum can be sustained, those working within traditional banks, as well as neobanks must be highly vigilant around the growing risks associated with fraud.
“If this doesn’t happen, institutions risk monetary and reputational damage because of fraud. This is an ever-present threat, with 71 per cent of financial institutions reporting a security breach from business email compromise last year alone
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