PUSHING THE FIGHT AGAINST FRAUDTO THE NEXT LEVELTim AylingGlobal Head of Fraud Prevention, Kaspersky Lab
Our Digital Lives2018: 7.4 Bn People6.4 BN2016: 6.4 Bn Connected Things ***2020: 95% new products willcontain IoT****2020: Bn Connected Things*** 7.7BnPeople85% of customer interactionswill be handled without a human70% People routinely*Source: study.html** Source: International Labour Organisation, World Bank*** http://www.gartner.com/newsroom/id/3165317****: Gartner, Top Strategic Predictions for 2018 and Beyond*****: ork remotely *
The Drivers for Consumer BehaviourHyper-connected consumers are spoilt for choice and consequently demand more.SOCIAL MEDIAIoT: WEARABLES, CONNECTED HOME, CONNECTED CAR, ETC.INSTANT FULFILMENTULTRA-PERSONALISED DIGITAL EXPERIENCESUBIQUITY
Are we in Charge of Our Data?Hyper-connected consumers are spoilt for choice and consequently demand more.MORE AND MORE DATA, EVERYWHEREMORE CONNECTIVITYMORE AND MORE TECHNOLOGIESDATA IS THE NEW COALMONEYOILMORE COMPUTING POWERMORE COMPLEX ANALYTICS, MORE INSIGHTSEXTENDED SUPPLY CHAINMORE WAYS TO COMMERCIALISE & MONETISEIT ALSO INTRODUCES MORE RISK.
You Can’t Stop Progress Consumers Want More, Businesses Need More. A Real Regulatory Challenge
But we are up against it
The Current State of e-Fraud
Current state of fraudNew phishing attack identifiedevery 30 seconds; globallosses 10.8 billion.*Fraudulent transactions viamobile apps rose by 600percent since 2015.*More than half of the mostdisruptive crimes in the UK resultedin losses over 100,000.**RSA Q1 2018 Fraud Report**PwC Global Economic Crime Fraud Survey 2018New account fraud 15x morelikely on new accounts vs.accounts more than 30 days old*Money laundering transactions areestimated at 2 to 5% of global GDP. That’sroughly 1-2 trillion USD annually.**
The findings*49% of global organizations have been a victim of fraud inthe past 24 months52% of all reported frauds over the past 24 monthswere cases of internal fraudHuge increase in compromise of loyalty program accountsCross-banking money laundering groups grown significantly* Raconteur Fraud Report 2018 published in The Times
Kaspersky Fraud Report 2018 ExamplesKaspersky identified more than 25,000 compromisedaccounts in a single fraudulent scheme. This rose by5,000 per month.Kaspersky identified 294 accounts involved in moneylaundering activities across four different banksA group of over 3,000 synthetic accounts were discovered(and blocked) in a single retail loyalty program.
Fraud increasing in volume and variety of actorsLeader From organized crime withinternal specializations To self-made bad guys that caneasily buy tools, use socialengineering, and learn fraudscenarios on the internetHead of the moneymule servicesVirus writer/ProgrammerMalware packingserviceSystemadministratorMoney mules managerAssistantSERVER SETUPTraffic Spammer L
19Beyond financeFinancial tionsGamingLoyalty schemesE-commerce/Retail
Think like a Cyber-CriminalServices offeringNext-day shippingReal time faster payments 10 for new accounts promotionCybercriminal opportunityMy shipping mule will have it beforeyour fraud team knows its goneI’ll cash out before your customercalls about a weird transactionOne sounds good - 6,000sounds great“Forgot my password” linkIf only there was a way to validateaccounts Account locks after 5 failed loginsGood luck making money when Ilock all of your user accountsView your statement onlineThanks for the identity theft one stop-shop!
Questions?Kaspersky Lab2 Kingdom StreetLondonW2 6BDUnited Kingdom 44 (0)20 3549 [email protected]
Kaspersky Fraud Report 2018 Examples Kaspersky identified 294 accounts involved in money laundering activities across four different banks Kaspersky identified more than 25,000 compromised accounts in a single fraudulent scheme. This rose by 5,000 per month.