The banks experienced a 51 per cent increase in losses following fraud, compared to 2022, according to the Finanstilsynet’s annual ROS report which section head Olav Johannessen presented on Tuesday. In total, the losses amounted to NOK 928 million.
– In 2023, there was a significant increase in overall losses compared to previous years. The losses are linked both to transactions where the fraudster issues or modifies the payment, and to transactions where the fraudster manipulates the payer into making the payment himself, Johannessen said during the presentation.
The vulnerability analysis shows that the losses have been stable over time, but that there was an increase in the last six months of last year. The losses are greatest for cross-border transactions within the EEA.
Most frauds occur through various forms of account transfers from the online bank, with NOK 647 million last year, up from NOK 395 million the year before. Fraud related to payment cards amounted to NOK 281 million in 2023, an increase from NOK 219 million the previous year.
“Deepfakes”
One method many people were exposed to last year was the so-called “secure account fraud” where a person is called and informed that an unauthorized person has gained access to your account. Therefore, people are asked to transfer their money to a secure account which is allegedly controlled by the bank or the police, but which is controlled by the fraudsters.
Fraudsters are quick to adopt new technology and artificial intelligence and so-called “deepfakes” are increasingly being used. Finanstilsynet writes that it is reasonable to assume that the use of such technological tools for fraud will increase.
At the same time, the players in the financial market are working hard to uncover fraud through many different measures, writes Finanstilsynet.
Averts attempts for 2 billion
– The banks stop a significant proportion of fraud attempts, and in total losses equivalent to NOK 2,072 million were prevented in 2023, the report states.
The entire digital threat picture for the financial industry is constantly changing, and technological developments increase the opportunities for criminals. Furthermore, there is increased trade between criminal circles, where the sale of criminal services to foreign intelligence is also on the rise.
– The National Security Authority also highlights the recruitment of insiders in the companies and acquisitions and investments from malicious people as risk factors. Finanstilsynet has registered an increase in insider-related incidents in the past year, writes Finanstilsynet.
