BioCatch , a digital fraud and money laundering detection provider, has released its 2023 Digital Banking Trends in North America report The report offers a comprehensive perspective of the prevailing fraud landscape and trends in North America leading into Q1 2024, including how the rise of mobile banking has led to corresponding technical and human vulnerabilities for fraudsters to exploit. For its final report of the year, BioCatch finds that North American fraud trends are rising for both old and new attack vectors.

Mobile banking rates increased to 73% in 2023, which in turn has led to an increase in fraud executed from mobile devices, rising from 47% in 2022 to 61% in 2023, partly due to fraudsters shifting from bots (on web devices) to mobile emulators to avoid traditional banking controls. Aligning with FinCEN’s report of an 84% increase in check fraud in 2022, BioCatch provides an in-depth analysis of the re-emergence of check fraud, which is now the number one fraud type across North America. For this report, BioCatch compiled data from key financial institutions within the North American region, along with insights gathered by its worldwide consortium of fraud advisors, threat analysts, and industry thought experts.

Key report findings Mobile Fraud on the Rise: mobile banking rates increased from 54% in 2022 to 73% in 2023, leading to a rise in mobile fraud attacks from 47% to 61%.  Check/Deposit Fraud Takes the Lead: fraud in deposit accounts is the number one fraud type across North America (including fraudulent account openings and account takeovers), with one million cases seen across its customers in H1 2023.  Zelle Fraud Is Rising: fraudulent transfers using Zelle increased by 4% in 2023, with over 30,000 cases seen in H1.  Fraudsters Shift from Bots to Emulators: a BioCatch case study shows a decrease in bot attacks and a sharp rise in mobile emulators against five North American banks, with one bank reporting 1584 more emulator attacks in 2023 compared to 2022. The data indicates that fraudsters are quickly favouring emulators to evade traditional defensive controls, reinforcing the effectiveness of behavioural biometric intelligence.  Attack Differences in the U.S. and Canada: in the US, criminals favoured bot attacks at account opening, check and deposit fraud, digital transfers, and mule accounts.

Data from Canada shows a preference for voice scams impersonating government bodies, targeting mobile devices, investment and romance scams, phishing attacks, and mule accounts. About BioCatch BioCatch analyses thousands of user interactions to support a digital banking environment where identity, trust, and ease coexist. Today, more than 28 banks and 152 of the largest 500 rely on BioCatch Connect™ to combat fraud, facilitate digital transformation, and grow customer relationships.

BioCatch's Client Innovation Board, an initiative featuring American Express, Barclays, Citi Ventures, HSBC, and National Australia Bank, collaborates to innovative ways to leverage customer relationships for fraud prevention.‌ .