Decoding of ‘Sudden Burst’ and ‘Slow Burn’ Attacks

In an era marked by technological leaps and global connectivity, the digitization of processes has opened avenues for both progress and peril. The recent release of AU10TIX’s Q4 Global Identity Fraud Report sheds light on the alarming surge in organized identity fraud, drawing data from millions of transactions processed across 249 countries from October to December 2023.

The findings reveal an unsettling trend known as “mega attacks”. These attacks are identified as a ‘sudden burst’ and a ‘slow burn,’ and highlight the growing sophistication of organized crime groups in exploiting vulnerabilities within identity verification systems.

Distinct Patterns: Sudden Burst and Slow Burn

The sudden burst involved 22,080 attacks, half of which took place over a short duration of 2-3 weeks. The slow burn involves around 2000 AI-generated IDs being used 5-6 times per day over a long duration, usually 12 months.

Key Trends 

As organizations grapple with these evolving threats, AU10TIX’s data points to critical trends that demand attention:

Cryptocurrency Sector Under Siege: The surge in Bitcoin value throughout Q4 saw a resurgence of attacks on the cryptocurrency sector, rising from 23% to 32%. The absence of stringent regulations in North America and APAC allowed fraudsters to exploit the Bitcoin frenzy, impacting regional dynamics.

Payments Sector Remains a Hotspot: The payments sector continued to be the primary target, bearing almost half of all global Q4 fraud attempts. With no widespread regulatory framework, organizations in this sector are urged to fortify their security protocols to protect consumers from fraudulent transactions.

Protective Measures: A Call to Action

In response to these challenges, there are recommendations for organizations looking to fortify their defenses:

Leverage Selfie-Based Biometrics: Implement proven selfie-based biometrics as a preventive measure against fake account onboarding.

Strengthen KYB, KYC, and AML Screening: Fortify Know Your Business (KYB), Know Your Customer (KYC), and Anti-Money Laundering (AML) screening processes to safeguard the reputation of your business.

Harness Consortium Validation: Engage in consortium validation to benefit from collective expertise, identifying complex fraud patterns that may evade individual entities.

Heightened Vigilance on Social Media Platforms: Recognize the increasing use of social media platforms by fraudsters to establish fake ID credibility. Exercise caution and vigilance in this evolving landscape.

As organizations worldwide grapple with the evolving threat landscape – By adopting these recommendations and fostering a collective approach to combating identity fraud, we can pave the way for a safer, more resilient digital future. Together, let us navigate the challenges and build a robust defense against the rising tide of identity fraud.

About the Author
Today Dan is the CEO of AU10TIX, a global leader in identifying and verifying digital users. Yerushalmi joins AU10TIX from cybersecurity company Checkpoint Software Technologies, where he served as Chief Client and Revenue Officer. Yerushalmi previously headed the technological division of Leumi Bank as a Group CTO, where he served on the bank’s management team. Prior to that, he was President and Business Manager of EMEA for Amdocs. In 2016, Yerushalmi was named one the 100 most influential CIOs in the world by CIO Magazine.
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