One constant certainty with fraudsters is that they will use any major event to expand and accelerate their fraud attacks—and the COVID-19 pandemic has driven this into a pace never before seen. Since the start of this global crisis, our fraud detection and prevention experts have been experiencing an unusually high level of volumes and frauds with our various customers. In an effort to share updates and education on COVID-19 related fraud intelligence, we’ve created this page as a knowledge-base of relevant thought-pieces and educational resources from fellow industry leaders, all trusted publications and organizations. We’ll update as frequently as possible with the latest COVID-19 related fraud detection and prevention tips.
Financial crimes are increasing amid the COVID-19 pandemic, with fraudsters impersonating tax officials to steal personal data. Multi-faceted approaches are necessary, as simply using automated systems or human intuition alone leaves financial institutions fighting with one hand tied behind their backs. In the inaugural Preventing Financial Crime Playbook, PYMNTS spoke with Debbie Guild, chief security officer at PNC Financial Services, about how AI-powered multilayered fraud prevention systems and employee education can help curb virus-centric scams.
May 22, 2020 : PYMNTS
The U.S. Treasury’s Financial Crimes Enforcement Network is alerting financial institutions about surging COVID-19 themed scams and other “illicit activities,” ranging from medical-related fraud involving the sale of fake cures, tests and vaccines to price gouging for supplies.
May 19, 2020 : Bank Info Security
As the coronavirus lockdown plodded forward, banks have been forced to very quickly adjust to a new reality of having many if not most of their employees work from home—a shift a lot of financial institutions have been ill-prepared to make. “Many companies were not ready to deal with a large remote workforce,” says Mathieu Auger-Perreault, director for fraud and security at Javelin Strategy and Research.
May 18, 2020 : ABA Risk and Compliance
The pandemic has shifted everything. And according to Jeff Bender, vice president of digital solutions at Diebold Nixdorf, the financial services landscape will be forever altered. “When we look at a post-COVID-19 world,” he said, “there’s no doubt that the global pandemic has had a profound impact on consumer behavior.”
May 15, 2020 : PYMNTS
How about this one? A consumer recently received an email from someone claiming to be from their financial institution. And the bank claimed that, somehow, the customer’s banking information was not accurate and was creating trouble with the deposit of the Economic Impact Payment, according to Melissa Gaddis, senior director of customer success for TransUnion Global Fraud & Identity Solutions.
May 15, 2020 : Detroit Free Press
Fraudsters are honing their phishing emails tied to the COVID-19 crisis, using fake messages about business continuity plans and new payment procedures to spread the LokiBot information stealer, Microsoft researchers report.
May 14, 2020 : Bank Info Security
As states begin to relax stay-at-home orders, many banks are beginning to plan for the safe and efficient return to normal in-office operations. Thousands of bankers joined ABA SVP Paul Benda last week for a member webinar on what banks should be considering as they prepare to restore normal operations in the wake of COVID-19.
May 13, 2020 : ABA Risk and Compliance
We have all become wary of emails and messages promising prizes, easy money-making opportunities. But scammers can evolve too, and as people start spending more and more time online due to the lockdown, they seem to be doing just that.
May 12, 2020 : Live Mint
A paltry 13 out of the 64 banks accredited by the UK government for its Coronavirus Business Interruption Loan Scheme (CBILS) have bothered to implement the strictest level of domain-based messaging authentication, reporting and conformance – or Dmarc – protection to stop cyber criminals from spoofing their identity to use in phishing attacks.
May 12, 2020 : Computer Weekly
The Justice Department has a tradition of not commenting on continuing investigations, but it’s sometimes subordinated to political imperatives. My interest was piqued when Brian Benczkowski, head of Justice’s criminal division, announced recently that the department had already uncovered signs of possible fraud by applicants for Paycheck Protection Program loans.
May 11, 2020 : Wall Street Journal
Fraud warnings continue to grow louder as bad actors uncover new opportunities to take advantage of market volatility and other aspects of the unique circumstances of the pandemic. For the B2B fraud landscape, the threat is particularly large.
May 11, 2020 : PYMNTS
In early 2020, a series of U.S. anti-money laundering/combating the financing of terrorism (AML/CFT) actions signaled that this would be a year of rising scrutiny of AML/CFT compliance, and the simultaneous Covid-19 pandemic has taken AML/CFT risks to an entirely new level.
May 11, 2020 : Bloomberg Law
It appears that two New England businessmen took the concept of “free money” way too far.David A. Staveley (a/k/a Kurt D. Sanborn) of Andover, Massachusetts, and David Butziger of Warwick, Rhode Island, have been accused of conspiring to illegally obtain funds through the Paycheck Protection Program (PPP). The PPP offers billions of dollars in potentially forgivable loans to keep workers on the payroll, guaranteed by the Small Business Administration (SBA).
May 10, 2020 : Forbes
Canada hit by COVID cheque fraud; Webex, Teams under attack, more COVID email scams and three big data breaches
It didn’t take long for cybercriminals to take advantage of the Canadian government’s multi-billion dollar pandemic payments program for consumers. Cheques under the Canada Emergency Response Benefit, or CERB, began rolling out in early April.
May 8, 2020 : IT World Canada
Threat actors are buying and selling taxpayer data on hacker forums as well as using phishing and other campaigns to steal various U.S. government payouts.
May 7, 2020 : Threat Post
What started as a tip that landed on a small-town Massachusetts police chief’s desk led to charges against two men who allegedly tried defrauding the government of thousands of novel coronavirus relief dollars.
May 7, 2020 : Yahoo! Finance
It’s hard to miss the many reports and discussions around scams in the wake of Covid-19. Featurespace explores the current state of scams and how data science can respond to keep consumers and businesses safe. Steve Goddard, Fraud Market Expert, will discuss social engineering and the evolution of scams. Tom Flowerdew, Lead Data Scientist, will chime in with how adaptive modeling handles this evolving threat and the data and behaviors to focus on.
May 6, 2020 : Feature Space
Several malicious spam campaigns using COVID-19 as a lure are attempting to install the Remcos remote access Trojan on victims’ devices, according to the Microsoft Security Intelligence unit.
May 6, 2020 : Bank Info Security
Attackers continue to use the theme of the coronavirus pandemic to create more convincing phishing lures and impersonate legitimate domains in an attempt to get past the strained cybersecurity of work-from-home employees, according to two reports released this week.
May 5, 2020 : Dark Reading
Coronavirus fraud: Two New England men are first to be charged with scamming small business loan program
Two New England men have become the first people charged in the United States with fraudulently applying for aid from a federal program designed to help small businesses deal with financial fallout from the coronavirus pandemic.
May 5, 2020 : CNBC
The strain on the global economic system as a result of the COVID-19 pandemic has created financial vulnerabilities, the Financial Action Task Force said in a report published Monday, suggesting that regulators must reinforce cooperation across borders and with the business sector to mitigate such risks.
May 4, 2020 : Law 360
The marketing and rental of banking trojans aren’t new practices. Since even before mobile forms of the malware were around the trojans existed in computer-based forms however they’ve always seemed to be limited in lifetime.
May 2, 2020 : Insight Portal
Over the last several weeks, a group of unidentified hackers have been methodically testing a new piece of code designed to steal credentials people use to log into banks and other financial institutions. Like many a product developer, the hackers have been fine-tuning the malicious software to make it more effective in siphoning off data from a mobile phone.
April 30, 2020 : Cyberscoop
Everyone who works in compliance understands the need for flexibility and adaptability. More often than not, new laws are enacted by state legislatures at the stroke of midnight or beyond. These new requirements are often effective immediately, with no lead time and scant guidance on implementation. It is the job of the legal and compliance professionals to figure it out so businesses can operationalize the requirements.
April 30, 2020 : ABA Journal Risk & Compliance