Have you heard of the British mathematician, Andrew Wiles? You could say he was into numbers. In 1637 Pierre de Fermat developed a theorem that stated that there can be no integer greater than 2 that satisfied the equation an+bn=cn. Fermat died before he wrote down the proof. For over 350 years, not one mathematician could provide the proof. However, in 1995, after a seven-year effort, Andrew Wiles published the proof using algebraic geometry and number theory. Who cares, right. Keep reading, this will all make sense soon.[1]
After reading Authentic ID’s latest Identity Fraud Report, this article is sharing some numbers with you to educate you on the scope of the issue. On average, there is a hacker attack every 39 seconds. This is a huge increase compared to the last few years. The increase in attacks is due to the emergence of Fraud as a Service (FaaS) and Phishing as a Service (PhaaS) platforms available on the Dark Web. This creates a situation known as “low-barrier-to-entry." It means there is no longer a requirement for a would-be hacker to be a super techie. Not when someone else has developed the tools for hackers to use.
It is projected that by 2027 the use of generative AI in the fraud area will lead to $40 billion in losses compared to $12.3 billion in 2023. AI tools are making it easier for criminals to make more realistic fake physical documents, up 9% from 2022. Audio deepfakes are up 12% and video deepfakes are up 20%.
In 2024, Account Takeover scams rose by 250%. During this scam the hacker gains unauthorized access to someone’s online account such as a bank, email, or social media. A typical victim loses about $180, but 40% of the victims also experienced identity theft. This is likely to lead to even larger losses and headaches.
Payment fraud is growing. The Consumer Financial Protection Bureau recently sued the operator of Zelle as well as three of the nation’s largest banks for failing to protect consumers from fraud on the platform. Authorized push payment scams have skyrocketed and are popular with organized crime groups, in part due to their large windfall and ease of completion in fast payment systems.
Cyber criminals are using a wealth of stolen personal information, creating synthetic identities, and leveraging AI technology to convince employers they’re a legitimate, qualified employee with a valid identity and once they have access to your organization’s systems, they can commit significant fraud. Last year, the median global loss due to employee fraud was $145,000. 32% of the time the fraudster impersonated an employee. 31% of the time it was an account takeover. 15%-19% of the time there are fake employees in positions, leading to intellectual property theft, and data breaches. But employers are not the only ones that need to be vigilant, job seekers need to be on the lookout as well. Fake job offers and task scams surged by 400%. Scammers post jobs that don’t exist to steal money or obtain personally identifiable information. Be careful of the well-paying work-from-home jobs that promise to pay extremely well.
Account recovery fraud is on the rise. If hackers have compromised your email or phone, they can call tech support of your other accounts like your bank or broker and explain that they are locked. Tech support may send a code or verification to the compromised device and the hacker has control.
Finally, social engineering drove more than 90% of cyberthreats last year. There was a 77% increase in Phishing, a 45% increase in Smishing, and 27% increase in Ransomware last year. Recognize that any unexpected email, text, or link, could be malicious.
This article is shared at no charge for educational and informational purposes only.
Red Sky Alliance is a Cyber Threat Analysis and Intelligence Service organization. We provide indicators of compromise information via a notification service (RedXray) or an analysis service (CTAC). For questions, comments or assistance, please contact the office directly at 1-844-492-7225, or feedback@redskyalliance.com
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[1] https://www.myheraldreview.com/news/business/the-cyberguys-from-theorems-to-threats-the-latest-cybersecurity-stats/article_3f4f7df2-b18e-40e6-9ddc-845dafc2d151.html
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