Malware fraud in LATAM rises sharply with persistent ATO attacks, BioCatch says

A new report reveals a surge in malware-driven fraud in Latin America, with cases increasing by 113 percent over the past year, with the biggest increases in Argentina and Colombia, but also notable spikes in Mexico, Brazil, and Peru. The findings are part of a detailed study by BioCatch on fraud trends in the region, highlighting vulnerabilities as digital banking usage continues to rise.

The data shows that fraudsters are increasingly deploying sophisticated malware to exploit online banking systems, as digital financial services become more widespread.

“What’s surprising isn’t necessarily the spike in malware-driven fraud cases in the region, but the volume in which these spikes occurred,” says BioCatch director of global fraud intelligence, Tom Peacock.

“We saw cases climb drastically in January of this year, taper off as banks sniffed out and shut down these attacks, and then explode again in June.”

The surge in malware-based attacks coincides with a broader uptick in fraud across the Latin American financial sector. Cybercriminals are using techniques, including remote access trojans (RATs) and phishing schemes, to target banking customers.

The report also points to changing fraud tactics. Many of the attacks are directed at vulnerable sectors, such as mobile banking apps, which have seen growth but lack sufficient security measures in some regions. Mobile devices are used in 79 percent of all frauds, which is 12 percent higher than last year. Additionally, fraudsters are leveraging malware to bypass traditional security mechanisms, including two-factor authentication. Also, BioCatch still sees a notable amount of account takeover (ATO) attacks in countries where regulation is not as progressive.

Jorge Aguilar Perez, BioCatch’s LATAM VP, says:  “Receiving suspicious phone calls, texts, and emails is now the norm, but even when we know these attacks are coming, the relentless innovation and persistence of scammers convinces more and more of us every year to share the personal or financial information these bad actors need to steal our hard-earned money.”

The report emphasizes the need for a collaborative approach, involving both private and public sector efforts to strengthen cybersecurity frameworks.

The deal making BioCatch a subsidiary of Permira, which is expected to boost the company’s global reach and behavioral biometrics product development, was completed earlier this month.

Article Topics

banking  |  behavioral biometrics  |  BioCatch  |  digital identity  |  fraud prevention  |  Latin America  |  malware