Analysing how companies across the financial services and fintech sectors are dealing with the growing avenues of fraud following the new ways of accessing, buying, and exchanging money online, SEON, the cybersecurity organisation, has published a report titled, ‘Global Banking Fraud Index: The Cost of Fraud to Banks & Organizations’.
The new report, which was drafted by SEON’s product evangelist, Gergo Varga assessed how fraud is impacting banks, organisations and individuals across the United States, and the United Kingdom. Using data from S&P Global, LexisNexis, Guidehouse, Identity Fraud Research Center, KPMG and Action Fraud, the report paints a picture of the cost of fraud to financial institutions in 2022.
Through this research, SEON revealed that the total cost of fraud has steadily increased over the last three years in the US. In the UK, banking fraud has shown similar growth, with this type of attack happening 66 per cent more in 2021 than in 2020. As part of its efforts to help mitigate the effects of online fraud, SEON’s report concluded with several relevant pieces of fraud prevention best practices that individuals and companies should follow.
Speaking on the report, Varga commented: “Fraud continues to be an expensive issue, especially within the banking and financial services sector. Every $1 lost to fraud costs businesses in the US around $3.60 to address, for US financial services specifically, that figure is closer to $4. Considering growing economic pressures, it’s now paramount that businesses do all they can to avoid incurring these costs before they happen.
“Alongside documenting some of the most significant increases in different forms of fraud, the new report highlights the general direction that fraud is trending in within the United States, and the United Kingdom. As the report explains, the pandemic has clearly pushed consumers and fraudsters towards digital transactions, which has, in turn, resulted in a major surge in mobile fraud that must be recognised by businesses and consumers alike.”
The new report is available on SEON’s website. The document forms part of the company’s comprehensive, and growing content portfolio, which contains articles, case studies and guides that cover a myriad of topics within the world of online fraud prevention and cybersecurity. The company is now actively working on several additional reports, which will further breakdown the threat of online fraud in 2022.