Independent Banker - October 2018 - 64

Compliance
Confidential
Make the most of your investment in cybersecurity
Dondi Black, VP Product Strategy, FIS
A recent Krebs report of how employees at a regional community
bank fell victim to phishing emails serves as a $2.4
million reminder of the diff iculty in fighting cyber fraud. The
breach began with an email that enabled installation of malware
on an employee's computer. This led to the compromise
of a second computer with access to the STAR Network.
From there, the hackers disabled and altered anti-theft
and anti-fraud protections, allowing them to wreak havoc
over a holiday weekend, dispensing cash from ATMs across
North America.
Unfortunately, financial services have suff ered some of the
highest costs of cybercrime, according to a joint Accenture/
Ponemon study. Denial of service, phishing, social engineering
and insider attacks-the latter often engineered through
phishing or social engineering that cons unsuspecting employees-are
the costliest forms of cybercrime for financial
institutions.
Data breaches have left more than 100 million records in the
U.S. alone open to compromise as hackers use the Deep
and Dark Web (DDW) to share personal identification information
(PII), including social security numbers and payment
card numbers.
ACCOUNT TAKEOVER FRAUD EXPLODES
What happens when billions of records exposing personal
information are sold on the DDW? Account takeover attempts
rise to astounding levels, increasing tenfold in 2017.
A recent Javelin report sponsored by FIS estimates that the
problem costs $1.7 billion worldwide. Meanwhile, the time
taken for consumers to resolve fraud more than doubled to
100 million hours between 2015 and 2017.
In response, the bank hardened its defenses. But eight
months later, it was hit even worse. Fraudsters accessed its
Navigator system, fraudulently transferring credits to customers'
accounts so they could withdraw more money from
ATMs, again during a weekend.
FINANCIAL SERVICES TAKE THE BIGGEST HIT FROM
ACCELERATING CYBERATTACKS
During the first quarter of this year, the cyberattack rate in
the United States rose 53 percent year-over-year according
to Threatmetrix, and there is little evidence to support a reversal
of this trend.
With no liability protections, consumers spend the most
time-17 hours, on average-to resolve card application
fraud. As a result, its victims are most likely to flee from their
financial institution to another provider.
HOW FIS HELPS COMMUNITY BANKS INVEST WISELY
IN CYBERSECURITY
Community banks cannot aff ord to assume the role of the
" weakest link " for hackers. The direct correlation between
customer loyalty and relationship disruption following account
fraud means banks must be proactive and highly responsive
in preventing and reacting to emerging fraud risks.
With the resources and scale required to quickly identify and
respond to changing trends in cyber fraud, FIS™ delivers innovative
technologies that help community banks optimize
their investment in cybersecurity.
Independent Banker - October 2018

Table of Contents for the Digital Edition of Independent Banker - October 2018
