Computers, rather than conmen, are set to be the future face of fraud, as criminals turn to robotics in an effort to avoid detection. That is according to a report from an auditor.
Organisations are set to battle against so-called “seeker bots” – defined as self-learning and self-replicating Artificial Intelligence that will render the faces of criminals invisible, says the audit firm KPMG.
Profile of a Fraudster is based on analysis of 596 fraudsters investigated by the firm between 2011 and 2013. Based on the modus operandi of their crimes, it predicts that traditional fraudsters (identified by KPMG as 36 to 45 years, acting against their own organisation and in executive positions), will be replaced by “seeker bots”.
These “bots” will be designed to continuously test a company’s cyber defences to find a “hole in the fence” meaning that attempts to second guess or pre-empt tactics used by real people will not always be worthwhile. The report warns that, on finding a gap, the bots will analyse the potential for fraud and then launch a highly specialised “attack bot”, uniquely designed to suit the type of business, size, infrastructure and data setup of the victim. The aim will be to remove assets to a virtual delivery location which can then be accessed by the fraudsters.
Hitesh Patel, UK Head of Forensic at KPMG, says: “This is not science fiction, but a taste of things to come. We are already seeing highly trained hackers link up with the organised crime network and the faceless criminal is not far away. Cyber crime is already on the rise and we expect cyber-attacks and high-tech fraud to grow exponentially.”
The audit firm’s report argues that, to unravel the frauds of the future, the best investigators will be those who are able to reduce large amounts of data to identifiable events. Yet some skills will remain as current tomorrow as they are, with successful defence requiring an ability to operate seamlessly across borders, sharing corporate intelligence to ensure quick historical and geographical reach enables organisations to track ‘bot behavioural patterns’ as quickly as they happen.
At the same time, the report reveals that the criminal(s) behind the changing face of fraud are by nature collaborative, preferring to collude with others instead of following the perceived stereotype of a reclusive loner. The data shows that the proportion of cases involving collusion rose from 32 percent in the 2007 survey, to 61 percent in 2011 and 70 percent in 2013.In many cases, perpetrators were highly respected (39 percent of all cases analysed), regarded as sociable (35 percent) and/or an extrovert (33 percent).
Hitesh adds: “A few years ago, hackers were motivated by political objectives and seen as disruptive influences targeting computer networks to make an ideological point. Most were seen as individuals trying to make a name for themselves, but with an ability to master Artificial Intelligence, it’s only a matter of time until fraudsters harness the full power of technology to enrich themselves and criminal organisations, unless legitimate businesses take steps to defend themselves.
“A plausible person is no longer needed to present a stolen cheque at a bank teller; all that’s needed is a hacker who can access a protected computer network. Perhaps human features and emotions will no longer be a significant part of the profile; instead, electronic features, signatures and behaviours may be all that a victim organisation will know of the cyber fraudster.”
For teh 26-page report visit the KPMG website.
