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55% Bank Frauds in India involved third party account takeovers: Report


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The Tel Aviv-based company BioCatch specializes in detecting digital fraud. In their “2024 Digital Banking Fraud Trends in India” report, they found significant insights into the nature of fraud in the country’s banking sector.

Third-Party Account Takeovers

BioCatch discovered that 55% of reported bank fraud cases in India involved third-party account takeovers. This type of fraud occurs when unauthorized individuals gain access to someone else’s bank account, email, or social media profile without permission.

Comparison with Social Engineering Scams

The report highlights that third-party account takeover fraud is more prevalent than social engineering scams in India’s fraud landscape.

Data Analysis

In December 2023 alone, BioCatch analyzed over 350 million sessions to identify potential vulnerabilities.

Focus on India

The study emphasizes India as the primary focus for understanding the latest fraud risks and prevention strategies in the banking sector.

Mule Accounts

Mule accounts, which are significantly underreported, pose a substantial threat to the banking industry. On average, each device involved in mule activity in India accessed 35 accounts.

Regional Insights

BioCatch found varying levels of mule activity across different regions:

  • Bhubaneswar: 14%
  • Lucknow and Navi Mumbai: 3.4%
  • Mumbai: 2.2%
  • Bhagabatipur and Gobindapur in West Bengal: 1.7% and 2.6%, respectively
  • Bengaluru: 1.8%
  • Cuttack: 1.6%

Expert Commentary

Tom Peacock, the Director of Global Fraud Intelligence at BioCatch, noted that mule accounts represent a significant but often overlooked trend in fraud. He urged Indian financial institutions to implement stronger security measures to detect and shut down these networks effectively.

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