A report by Outseer has found the presence of rogue mobile banking apps increased 140% compared to the same time in 2020.
The 2021 Fraud and Payments report recorded a 66% increase in rogue mobile banking apps compared to the second quarter, findings that show the presence of the apps are witnessing a huge spike as more people take their finance matters online.
Elsewhere, the report found that around 70% of fraudulent transactions in digital banking originated through a mobile channel, while brand abuse attacks continued to be the most dominant attack vector for the third straight quarter, comprising 49% of all attack types. There were 49,000 attacks detected by Outseer’s Anti-Fraud Command Center in the third quarter.
In another key development, the report detailed the continued growth of worldwide 3-D Secure transactions due to the huge adoption of online shopping and new PSD2 mandates. This area saw growth of 79% over the past 18 months, with year-on-year growth coming to 44%.
For the use of EMV 3-D Secure 2.x technology specifically, there was strong growth recorded worldwide. In Europe, up to 46% of all transactions in the second quarter used EMV 3-D Secure 2.x technology. Meanwhile, the US saw nearly four-times as much growth, with 2.x transaction volume jumping to a share of 37% in Q2 2021.
According to Outseer, this global share increase can be attributed to a ‘pandemic-fuelled spike’ in card-not-present transactions in addition to looming PSD2 enforcement dates.
Outseer CIO and CMO Armen Najarian said, “As the pandemic fuels an unprecedented spike in digital shopping globally, we’re excited to see card issuers and merchants embrace the gold standard of payment authentication technology. The latest 3-D Secure standard delivers the shopping experiences consumer demand, with the positive economics and growth that card issuers and merchants require. We expect the global payments ecosystem to deepen its use of 3-D Secure to authenticate digital transactions.”
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