Soaring Scam and Fraud Sophistication Remains Top Challenge Threatening to Overwhelm the Global Financial Services Sector
May 07 2024 - 9:00AM
Business Wire
Mitek’s new Identity Intelligence Index unmasks
emerging security threats to banks, including AI-generated fraud
and deepfakes
Just over three-quarters (76%) of banks surveyed believe fraud
cases and scams have become more1 sophisticated, according to the
new Mitek Systems, Inc. (NASDAQ: MITK) Identity Intelligence Index
2024 conducted in January 2024. Financial institutions (FIs) are on
the frontlines of the evolving threat landscape and new research
reveals the concerns that affect them each day as they try to keep
people, their money, and their data safe.
Mitek and Censuswide commissioned the global survey of 1,500
financial services risk and innovation professionals located in the
UK, US, and Spain to statistically validate what it hears from
company leaders and help them plan for what is next.
Below are the significant survey findings:
Banks battle diverse fraud threats – from deepfake tech to
money laundering
Banking risk and innovation leaders surveyed grapple with
concerns across many different fraud types. Their biggest fraud
threats are currently money laundering (25%), account takeover
(23%) and forgeries (21%), while the biggest challenges today are
the rise of AI-generated fraud and deepfakes (37%).
Leaders face the constant challenge of keeping up with these
threats as they evolve in real-time so they can do right for their
customers and fight fraud. Almost a third (32%) of risk
professionals estimate that up to 30% of all transactions are
fraudulent; this provides insight into how complicated the fraud
landscape is today.
New customers give banks the biggest shiver
The findings reveal that new customers are often the riskiest.
Banks surveyed cite that customer onboarding, or account setup, is
where they see the most fraud (42%)2, and the most risk (41%)2.
Worryingly, nearly 1 in 5 (19%) banks find it hard to identify
customers at any stage of the customer journey despite global Know
Your Customer (KYC) regulations aiming to put due diligence in
place for organizations.
Banks ask for regulatory intelligence and tech
simplicity
For banks that believe they could do more to protect customers,
they place equal importance (36%) on needing a better understanding
of the latest regulations, a reduction in the technology stack, and
the ability to respond real-time to customer requests.
When comparing their security measures to prevent and/or catch
fraudulent attacks, 41% of fintech professionals have identity
verification in place, compared with 33% of mature banks. Around 1
in 3 banking professionals cite using both liveness detection (36%)
and biometrics (32%) to prevent and/or catch fraudulent
attacks.
“Financial institutions are under attack,” said Chris Briggs,
Senior Vice President of Identity, Mitek Systems. “In today’s
banking world, we know our customers are overwhelmed by an
increasingly complex fraud landscape, ranging from AI-generated
fraud and deepfakes globally, to record high increases in check
fraud in the US. We need to unite government, businesses and
technology to keep people safe online.
Note to editors
- Download the full Mitek Identity Intelligence Index 2024
report.
- Learn from industry experts and thought leaders here.
- Watch Experian's Fraud & Financial Crime Product Director,
Tristan Prince, highlight the significance of managing the customer
journey; Tristan reinforces that “99% of customers are good.” Watch
the one-minute video here.
About this survey and Censuswide
The research was conducted by Censuswide, among a sample of
1,500 head of risk and head of innovation in the financial services
sector (retail and corporate banking only) located in the UK, US,
and Spain. The data was collected between 18.01.24 - 26.01.24.
Throughout the release, ‘young banks’ and ‘fintechs’ refer to banks
aged 0-50 years old. ‘Older’ or ‘mature’ banks refers to those aged
50+.
Censuswide is an international market research consultancy
headquartered in London. Censuswide abides by and employs members
of the Market Research Society and follows the MRS code of conduct
and ESOMAR principles. Censuswide is also a member of the British
Polling Council.
About Mitek
Mitek (NASDAQ: MITK) is a global leader in digital access,
founded to bridge the physical and digital worlds. Mitek’s advanced
identity verification technologies and global platform make digital
access faster and more secure than ever, providing companies new
levels of control, deployment ease and operation, while protecting
the entire customer journey. Trusted by 99% of U.S. banks for
mobile check deposits and 7,900 of the world’s largest
organizations, Mitek helps companies reduce risk and meet
regulatory requirements.
Learn more at www.miteksystems.com. Follow Mitek on LinkedIn and
YouTube, and read Mitek’s latest blog posts here.
____________ 1 Combining answer options “A great deal” and
“Somewhat”. 2 Combining answer options “During customer onboarding”
and “During customer onboarding and after onboarding”.
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version on businesswire.com: https://www.businesswire.com/news/home/20240507601738/en/
TEAM LEWIS for Mitek Jess Bradbury / Chloe Gibbs
Mitekuk@teamlewis.com
Angela Romei Senior Director, Corporate Communications Mitek
Systems pr@miteksystems.com
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