Financial Organizations Have Difficulty Identifying Fraudulent Transactions

38 percent of financial organizations are unable to distinguish a cyberattack from normal customer activity, reports Kaspersky Lab

Woburn, MA – June 14, 2016 –Kaspersky Lab announced today the results of research from Kaspersky Lab and B2B International, which found that banks and financial organizations need to improve their approach to managing online financial fraud in today’s connected world. The research reveals that more than one-third (38 percent), find it increasingly hard to tell whether customer account activity is normal or fraudulent.

With the explosive growth of e-payments, the number of online transactions have increased, establishing online fraud as a larger concern for businesses and consumers alike. According to the findings, 50 percent of financial services organizations claimed they believe online financial fraud is in fact increasing. It’s clear that financial institutions recognize the rapid growth of online cyber threats, but they need to take their security strategies a step further to properly manage and secure their businesses to protect against the rising number of threats.

Among financial organizations, only 57 percent have a dedicated anti-fraud security solution and 46 percent of companies have either only partially implemented a solution against financial fraud, or have not implemented one at all. As companies become increasingly immersed in digital environments, exposing themselves to more cybercriminals than before, they need to leverage innovative solutions that evolve and adapt to the latest cyber threats to protect their financial business operations and their customers in real-time.

While some businesses are taking security measures to protect against cyberattacks, nearly half of the organizations operating in the electronic payments landscape use non-specialist solutions, which are unreliable against fraud and show a high percentage of false positives, according to statistics. The incorrect use of security systems can lead to genuine transactions being blocked, causing a false alarm in the system that disrupts the customer’s service which could lead to loss of customers and ultimately, a decline in profits.

“Considering the aggressive competition in today's fierce financial services market and the extreme disruption from non-traditional providers, a trusted relationship between customers and their financial institutions is a decisive factor for the long-term prosperity of any company,” said Ross Hogan, Kaspersky Lab Global Head of Fraud Prevention. “The interdependence of the digital relationships between all financial services market players also means that if any one organization in the value chain experiences a digital service issue, whether due to fraud, breach, cyber-attack, etc., the damage can quickly spread to any of the other organizations.”

For information on Kaspersky Lab’s comprehensive online fraud prevention offerings, please visit: http://www.kaspersky.com/enterprise-security/fraud-prevention

About Kaspersky Lab

Kaspersky Lab is a global cybersecurity company founded in 1997. Kaspersky Lab’s deep threat intelligence and security expertise is constantly transforming into security solutions and services to protect businesses, critical infrastructure, governments and consumers around the globe. The company’s comprehensive security portfolio includes leading endpoint protection and a number of specialized security solutions and services to fight sophisticated and evolving digital threats. Over 400 million users are protected by Kaspersky Lab technologies and we help 270,000 corporate clients protect what matters most to them.

Learn more at www.kaspersky.com.

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Denise Bertrand
781.503.1836
denise.bertrand@kaspersky.com