Bank Fraud Losses Could Reach $1 Billion

By: Absolute Team | 9/16/2010

According to trends tracked by the Anti-Phishing Working Group, US companies could see $1 billion in losses in 2010 as the result of online banking fraud.

"Trend-wise, we've been looking at reports of losses since the beginning of last year at $100,000 per incident, and as we got to the latter of last year, we saw losses in the $400,000 to $500,000 range, and now we're seeing losses in the [millions range]," Jevans says. "Looking at those trend factors and also correlating FBI reports on how losses are growing and extrapolating that, you end up somewhere around $1 billion for this year."

So far, the targets of this banking fraud have been small- to medium-sized businesses which don't have adequate security set up. The majority of these businesses tend to bank with small to midsized banks or credit unions, which also don't have the security expertise that larger banks do. The article over at Dark Reading also suggests that consumers may be the next target for cybercriminals.

Financial Services