Welcome to the latest installment of Risky Business. Here’s a look at the month’s top stories from the fraud, regulatory, and financial services landscapes:
- A new infographic outlining the latest trends in fraud, including the staggering prediction from Deloitte that GenAI-driven fraud will lead to $40 Billion in losses by 2027.?
- Bank Director ran a deep dive into cybercrime and why it is seemingly exploding as an issue for banks. Notably, the finance and insurance industry had 3,348 cyber incidents last year— the second highest number after public administration, according to Verizon’s 2024 Data Breach Investigations Report.
- A new regulation in the UK went into effect requiring banks to reimburse victims of APP scams for up to ￡85,000. The rule is causing tensions to rise between banks and tech companies about who should be held accountable, as APP scams continue to be a prominent challenge. According to Alloy’s 2024 State of Financial Crime Report, APP fraud was the most common fraud type UK financial institutions reported.
- In the constant quest to balance customer experience with security, many financial institutions started making check funds deposits available to customers before they officially verify the check. Now, many banks are walking that back as multiple large banks have seen widespread attacks targeting this vulnerability in their fraud controls.?
