Fraud is wider: credit fraud in Russia exceeded 12 billion rubles
The volume of credit fraud, when fraudsters arrange loans for bank clients, in 23 major Russian banks is estimated at 12.8 billion rubles by the end of 2024, according to a presentation by Alexander Danilov, Director of the Department of Banking Regulation and Analytics of the Bank of Russia, at the Urals forum "Cybersecurity in Finance". Izvestia has analyzed how banks plan to fight fraudsters and whether they will be able to reduce the amount of stolen funds.
Schemes and solutions
In general, if we talk about trends in the financial sector over the past year, the complication of social engineering techniques is noticeable, Dmitry Ermakov, head of the department of counteraction to financial fraud F6, told "Izvestia".
- If earlier it was just calls and influence on the victim, now fraudsters use hybrid schemes. Along with calls, phishing and malware are also used, which is much talked about. SpyNote, CraxRat, NFCGate and the like," he noted.
Fraudsters are looking at more affordable banking products that allow more funds to be withdrawn in the moment. That's why they use loan applications that are approved fairly quickly by banks.
- If banks start shutting down loan products, fraudsters will move on to other loopholes. In particular, they can use credit card issuance, they can wait for the balance to appear on the accounts and at that very moment attack the victim. Let's say, when the salary was transferred," he noted.
The innovation with a two-day freeze before issuing a loan will obviously bear fruit in the short term, but again fraudsters adapt.
- And, as much has been said, now the victim is under such influence that it takes up to a week to realize the fraud. Sometimes it's very hard to bring people out of that state. Plus, the fraudsters are acting in a centralized fashion. We are dealing with quasi-governmental structures," says the specialist.
According to him, the solution can only be a single centralized platform.
- And any participant can in real time get the necessary information on the recipient's details, whether he is a fraudster, whether there is some negative history or not, - added Dmitry Yermakov.
At present, banks are actively implementing modern technologies to prevent fraudulent transactions, noted Alexey Lossan, an expert of the company "Compare", in a conversation with "Izvestia".
- In 2024, the volume of thefts prevented amounted to RUB 13.5 trillion, which is 2.3 times more than in 2023. This became possible due to the improvement of algorithms for analyzing transactions and prompt blocking of suspicious transactions," he reminded.
The Bank of Russia has created a database on fraudulent transactions, which receives information even without applications from victims. This allows to identify and block suspicious transfers faster. Also, banks are actively informing customers about new fraud schemes to increase their vigilance and reduce the risk of falling for the tricks of swindlers.
Thus, according to the expert, the strengthening of security measures and cooperation between banks, regulator and law enforcement agencies allow us to hope for a gradual reduction in the volume of stolen funds.
In 2024, the banks' anti-fraud system prevented 72.17 million attempts to steal a total of Br13.5 trillion.
Personnel control
Addressing digital fraud requires a multifaceted approach, including the use of all possible legal tools. It is important to pay attention to potential victims, improve their financial literacy and critical thinking skills. Educational programs for the most vulnerable groups, such as pensioners, as part of projects like "Active Longevity" will help, Alexei Efremov, a leading researcher at the Center for Public Administration Technologies of the Russian Academy of National Economy and Public Administration, told Izvestia.
- The possibility of introducing compulsory financial liability insurance for the most vulnerable categories of citizens could be considered. This will serve as an additional protection against cases when the loan is transferred to fraudsters. It is also necessary to strengthen control over telecom operators to block calls from fake numbers and messengers that allow you to bypass voice communication," the expert believes.
An important aspect, according to him, is control over the activities of financial organizations. Their unscrupulous employees can facilitate crimes by transferring personal data of clients.
- Since most fraudulent activities are related to loans, not deposits, it is worth tightening the process of obtaining loans and conducting a thorough check of employees of credit institutions that issue loans, which are then passed on to fraudsters, - said Alexei Efremov.
Unprofitability of theft
The figures voiced by the Bank of Russia on credit frod - only the visible part of the problem, the real damage is much higher due to reputational risks and operational costs, said "Izvestia" associate professor of the Department of State and Municipal Management GUU Mikhail Polyakov. Fraudsters are rapidly evolving, using sophisticated social engineering techniques, so proactive protection based on deep data analysis and constant threat monitoring is necessary.
- However, technology is not a panacea - the human factor is extremely important. Information campaigns should not just be formal, but provide concrete examples of deception, and bank employees should be trained to recognize atypical customer behavior. 100% protection is unattainable, but the goal is to make fraud as difficult and unprofitable as possible. This requires a comprehensive approach, including not only technological solutions, but also close cooperation between banks, law enforcement agencies and the Central Bank for prompt detection and suppression of criminal schemes," the expert said.
According to him, the most promising technologies in the fight against fraud may be:
- proactive Threat Intelligence;
- advanced authentication and authorization (introduction of new technologies such as adaptive authentication and behavioral biometrics;
- improving AI/ML-based frod detection systems;
- customer education and awareness (focusing on practical, concrete examples of fraud).
"Izvestia sent a request to the Central Bank, but no response had been received by the time of publication.
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