Fraud Exposed: How Fraudsters Target Digital & Neobanks

In recent years almost every established bank has shifted to an online-first model. Thanks also to the recent explosion of neobanks, the days of visiting a bank in person seem like an old memory. But this shift has unfortunately opened many doors for online fraudsters. With highly valuable information stored on these platforms, protecting digital and neobanks from fraud is extremely important.  

The industry is seeing a drastic lift in the adoption of digital-only banking solutions. In fact, over 2.5 billion people are expected to be using online banking services by 2024. But digital banks are significantly more vulnerable to fraudulent attacks than physical banks. Banks want to give customers a frictionless experience, which often comes at the cost of security. And if an online bank implements an overbearing fraud detection and prevention solution, it may compromise the seamless user experience they intend to offer.