How a tenfold increase in online fraud has been driven by social engineering scams

US and Canadian banks have reported a 1,000% increase in online fraud this year.

According to Israeli cybersecurity firm BioCatch, despite banks implementing more controls to prevent fraud, a massive increase in fraudulent activity has been driven by criminals using techniques that dupe customers into sending them money.

Fraudsters commonly use Zelle, a digital payment network, to trick people into sending money to fake accounts through social engineering and persuasion techniques. They have also used fake Zelle accounts in the name of their victims to transfer money out of that person’s other bank accounts, leaving victims with little recourse to recover lost funds. Among JPMorgan Chase, Bank of America, and Wells Fargo alone, customers reported a combined $166 million in fraudulent Zelle transactions in 2023.

The use of social engineering and manipulation to carry out online crime is only more likely to increase, as fraudsters find it easier to target human beings than to circumvent anti-fraud technologies. As a result, it is more important than ever that boards have the necessary cybersecurity expertise to respond to a rapidly changing fraud environment. In 2023, 61% of Fortune 100 companies were seeking cybersecurity expertise on their boards, an over three-fold increase from 20% in 2018. This demand is only likely to increase over time as the technological landscape becomes ever more complex.

L-EV8 is on a mission to train cybersecurity experts to become non-executive directors and address this critical skills gap. Get in touch with us to find out how we can help you, either as an individual or a company.