18 June 2024
Tietoevry Banking, the leading Nordic software and competence center for combating digital fraud, prevented fraud amounting to NOK 2.7 billion in 2023, according to the "Payment Fraud Report " that is released today. The report, based on the analysis of over three billion card and account transactions, reveals a significant increase in advanced phishing and various social engineering methods.
Tietoevry Banking monitors card and account transactions to prevent fraud and has a Defence Centre where experts work around the clock on behalf of Nordic banks. In 2023, Tietoevry Banking monitored 3.4 billion transactions in real-time, handled 134,000 fraud cases with a detection rate of 90 percent, and stopped approximately 70 percent of fraud attempts without loss, saving customers 2.7 billion kronor.
"We also stopped 1.4 million transactions on websites selling fake or illegal goods, and 1.5 million transactions related to subscription or investment fraud were blocked," says André Moen Eide, Head of Financial Crime Prevention Defence Centre at Tietoevry Banking.
From 2022 to 2023, the number of fraud attempts involving cards or accounts increased by almost 70 percent. The number of fraud cases involving digital wallets increased by a staggering 300 percent. In the area of phishing, the number of fraud attempts increased by over 60 percent, while fraud related to social engineering increased by over 150 percent.
Artificial Intelligence as a "Game Changer" for fraudsters
"Fraud resulting from social engineering is a rapidly growing problem worldwide. Exploiting human factors to gain confidential information or assets occurs through various channels such as social media, phone calls, messages, emails, and online meetings. Different forms of phishing and social manipulation are the two primary forms of social engineering," says André Moen Eide.
With the use of artificial intelligence, fraudsters will become even better at this, for example, through AI-generated deep-fake phone calls, which can manifest as kidnapping fraud or CEO fraud.
Prominent fraud methods detected included "secure account" fraud, romance scams, and various extortion methods. The prevalence of secure account fraud is expected to continue, and many new manipulation methods are likely to emerge. Innovation is key in the fight against payment fraud to stay ahead of the criminals.
"Through measures such as monitoring digital wallets, real-time monitoring of mule accounts, using questions and answers related to anti-money laundering solutions, and further integration of banking system information, we strengthen our defense against fraudsters," says André Moen Eide.
For more details on figures, fraud methods, and trends, see and download the Payment Fraud Report here: FinCrime Insights: Payment Fraud Report
Five tips to avoid being tricked by fraudsters
With the rapid development of AI, there are five things everyone can consider to reduce the risk of falling victim to fraud:
✅ Verify the identity of people who contact you: Fraudsters can exploit AI to create synthetic voices and conduct phone scams. It is also possible to recreate voices of people you know and trust. Therefore, ask control questions if you are in doubt and request the person contacting you to verify themselves with information only they would know.
✅ Never disclose sensitive information in calls or messages: Be especially cautious with unexpected communications asking for personal or financial details. Do not approve any logins or transactions upon request without verifying the purpose. It is common for fraudsters to claim they are calling from a bank or authority.
✅ Be skeptical of unexpected messages: Think twice before clicking on links or opening attachments. Be wary of messages asking for quick money transfers from friends or family. Their email or social media accounts might have been compromised.
✅ Be aware that public information can be exploited: Remember that all information shared publicly, both on social media and in other digital environments, is also accessible to criminals. Personal information can be used by fraudsters to craft convincing scams. With AI, it is also possible to mimic individuals in voice, image, and text.
✅ Beware of fake online stores: Many card frauds occur through fake online stores designed to resemble reputable and established online retailers. Therefore, double-check the web address carefully and be skeptical of offers that seem too good to be true.
For more information, please contact:
Tietoevry Newsdesk, news@tietoevry.com, tel. +358 40 570 4072
Tietoevry Banking is the market-leading provider of financial SaaS solutions for the Nordics and beyond. We modernize banks and unlock significant value for clients with our proven low-risk implementation of our market leading software for Cards, Payments, Credit, Financial Fraud Prevention and Wealth, as well as a modular, pre-integrated Banking as a Platform solution. With unmatched scale, expertise and specialization, we drive the industry forward by enabling financial institutions to become more agile and efficient, accelerating their digital transformation journey. We are part of Tietoevry; the group’s annual turnover is approximately EUR 3 billion. Tietoevry’s shares are listed on the NASDAQ exchange in Helsinki and Stockholm, as well as on Oslo Børs. https://www.tietoevry.com/en/banking/
Attachments
