A report by payment solutions provider EastNets has highlighted that banks are in growing risk of SWIFT payment messaging fraud.
SWIFT refers to a network through which participating financial institutions send and receive information on financial transactions.
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In the survey, EastNets surveyed 200 banks, most of which have faced an electronic SWIFT fraud attempt since 2016.
The report also noted that two-thirds of banks said that such attempts have been increasing since 2016.
Furthermore, only two-fifths of banks expressed confidence that they identified every electronic SWIFT fraud in the last three years.
Notably, a ‘significant portion’ of these financial institutions have no prevention policy to combat SWIFT cyber fraud.
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By GlobalDataA survey conducted earlier this year also highlighted lack of proper co-ordination among bank’s internal departments to address the issue.
EastNets chief strategy and product officer and author of the report Deya Innab said: “Based on what we know about SWIFT fraud we believe banks’ optimism reveals overconfidence and a potential for higher risks in the future.”
A secondary research in the EastNets report found that the industry has incurred at least $380m in combined losses due to SWIFT payment fraud.
It noted that 60% of the US banks were targeted by SWIFT frauds. The figure increases to 100% in the Asia Pacific region.
