Kopar Khairane

Approximately 55% of all fraud in India is the consequence of third-party account takeovers: Report

<p>According to a recent survey, the largest portion of fraud in India is related to third-party account takeover, accounting for almost 55% of all fraud cases.</p>
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<p>According to a survey by fraud detection solutions firm BioCatch, each device implicated in mule activity in India had an average of 35 accounts open.</p>
<p>It said that whereas 86% of the initial session of recorded mule account activity originated from inside India, within a month that percentage dropped to only 20% – and 16% of those sessions utilized a VPN – suggesting that the fraudsters were probably accessing Indian mule accounts from outside the nation.</p>
<p>According to an area-by-area analysis in the report, Bhubaneswar accounted for 14% of all recorded mule activity, while Lucknow and Navi Mumbai accounted for 3.4%, Bhagabatipur and Gobindapur, two West Bengal cities, 1.7% and 2.6% respectively, Mumbai 2.2%, Bengaluru 1.8%, and Cuttack 1.6% of the activity.</p>
<p>The growth of mule accounts in India is one of the report’s noteworthy findings. Nine out of ten mule accounts at one partner bank remained unreported, according to the statistics. The research stressed how critical it is for Indian financial institutions to strengthen their fraud defenses, especially in light of the growing prevalence of mule accounts.</p>
<p>The report analyzed over 350 million sessions in December alone, drawing insights from a vast dataset, and highlighted emerging fraud risks and prevention strategies for digital banking in India in response to a recent recommendation by the Reserve Bank of India (RBI) to abandon text-based one-time-passcodes for secure authentication.</p>
<p>The paper emphasized how vital it is to implement strong security measures in view of the constantly changing fraud risks. Adoption of cutting-edge solutions is necessary for successful detection and prevention. One such solution is BioCatch’s next-generation financial crime detection and prevention portfolio, which makes use of behavioral biometric intelligence.</p>
<p>The paper clarifies a mix of regionally specific concerns and common threats identified internationally. BioCatch advises banks and financial institutions to provide more priority to information on criminal strategies and fraud arsenals due to an increase in mule activity, complex fraud attempts, and scams that are occurring globally.</p>