These kinds of attacks are becoming more frequent in the online banking arena, undermining consumer confidence in a brand, putting customers at great risk of identity theft and costing the financial industry billions of dollars each year.
As attacks, particularly variations of phishing and other social engineering techniques, continue to escalate, financial institutions find themselves constantly battling to find better ways to mitigate the fraud and related damages.
These attacks may include:
- Misdirection, by a hacker, to a fake website. It may be difficult for the user to tell the difference between their real banking website and a fraudulent one. When a user receives a message or instructions from what looks like their bank, they often don’t question the authenticity of the message, leaving them vulnerable to social engineering schemes.
- Taking control over authorization decisions. In most transaction processes, it’s the user, not the bank who controls the authorization decision. However, a hacker, using social engineering schemes like phishing, can convince the user to generate a signature and authorize a fraudulent transaction without the bank’s involvement.
Amidst these challenges, however, banking customers are demanding a simple and secure banking experience across all channels. Inconvenient authentication and transaction approval measures force customers to consider more user-friendly bank applications.