Phishing surpassed vulnerability exploitation as 2021’s top fraud vector, with big banks among the most imitated brands.

On a list of the top 11 most-spoofed companies in phishing attacks, BMO Harris and Chase came in at fourth and fifth, respectively, according to a recent report from technology consultancy IBM. June 2021 saw the highest number of phishing attacks ever recorded, with 222,127 detected attacks.

While financial institutions continue to be exploited by cybercriminals, the industry is no longer the top attack target with supply chain attacks taking the top spot. The report cited the success of anti-fraud systems and hybrid cloud networks as chief reasons for the improved outlook. Financial services now account for 22.4% of cyberattacks, with 70% focused on banks.

2021 fraud losses skyrocket to $5.9B

Financial institutions’ shift to digital during the COVID-19 pandemic spurred a rapid increase in fraudulent activity, Andrew Davies, director of business development and financial risk management solutions at Fiserv, said last week during the Consumer Bankers Association’s CBA Live 2022.

“Early in the pandemic, during April 2020, there was a 50% increase in fraud complaints going to the Federal Trade Commission,” he said.

While Davies said total fraud losses hit $5.9 billion in 2021 — a 79% year-over-year increase — financial institutions responded with an estimated $4.5 billion fraud detection spend that same year.

Security is a key differentiator for customer experience in financial services, Davies told the audience.

“If a customer has a good experience when acquiring a product from an organization, there is a 65% likelihood that the customer will acquire another product from them,” Davies said.

Other trends noted by Davies:

• 64% growth in real-time payments (RTP) volume over the course of the pandemic, with numbers expected to double in 2022, according to The Clearing House;
• 64% of global businesses have interest in RTP implementation, but 75% of organizations have seen payments-based cyberattacks; and
• $180 million netted by Conti ransomware attacks in 2021.

Digital spend increases 22% YoY at Bank of America

Digital consumer spending at Bank of America in February increased 22% year over year with an increased adoption of tap-to-pay contributing to the growth. Tap-to-pay usage represented 19% of in-person transactions at the $3.1 trillion bank. Total payments reached $294 billion, a 16% YoY increase, while combined debit and credit spending grew to $63 billion, a 21% YoY increase.

A return to normalcy in spending was a major contributor to the bank’s growth, Mary Hines Droesch, head of consumer and small business products, said in a release.

“Strong spending trends across a variety of sectors such as travel, restaurants, public transportation and gym memberships suggest more consumers are returning to the office and resuming more in-person activities,” she said.

Other February trends at Bank of America:

• 38% and 43% growth in restaurant and gym respectively, while spending on miscellaneous in-person activities by younger customers shot up 162% YoY;
• 95% increase in travel spending, driven by baby boomers and seniors; and
• Up 15% YoY: Total deposit balances rose to $1.4 trillion while growth across customer demographics grew by double digits, according to the release.