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METAVERSE COMPANIES FACED 60% MORE ATTACKS LAST YEAR, AND 5 OTHER ONLINE FRAUD
STATISTICS
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Metaverse companies faced 60% more attacks last year, and 5 other online
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by Brandon Vigliarolo in Security
on February 17, 2022, 10:35 AM PST
METAVERSE COMPANIES FACED 60% MORE ATTACKS LAST YEAR, AND 5 OTHER ONLINE FRAUD
STATISTICS
It was a banner year for online fraudsters. Almost every industry saw an attack
spike, with online fraud jumping 85% year over year in 2021, says Arkose Labs.
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Image: BeeBright, Getty Images/iStockphoto
A report from online account security and fraud prevention company Arkose Labs
found that there was a massive spike in online fraud in 2021, to the tune of an
85% year-over-year increase that found nearly all industries suffering a deluge
of account fraud and cyberattacks.
Digital transformation, remote work and the metaverse are hot buzzwords that
Arkose Labs Founder and CEO Kevin Gosschalk said are making online attack
surfaces exponentially larger and exponentially more inviting as targets for
savvy cybercriminals.
MUST-READ SECURITY COVERAGE
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Enough?
* Quick Glossary: Cybersecurity Attacks
“In this new world, businesses and all digital platforms need to upgrade and
advance their fraud and security defense tactics in 2022. What worked in the
past is no longer viable, and they will need to adapt to ever-evolving attacks
that target many touchpoints,” Gosschalk said.
SEE: Quick glossary: Metaverse (TechRepublic Premium)
There are some alarming statistics right off the bat in Arkose Labs’ report. By
its reckoning, 21% of all online traffic was fraud or cyberattack related, one
in four new account registrations were fake, 80% of all login attacks were
credential stuffing attempts and the travel industry was hit particularly hard,
with a 12.5 time increase in attacks as people return to traveling.
Arkose Labs breaks the bulk of the report up into six key attack trends in 2021,
and warns that businesses need to plan not only for these, but the unknown
attacks of tomorrow as well.
ACCOUNT SECURITY BECOMES MORE OF A PROBLEM
Most everyone understands the importance of account security nowadays, even if
they don’t practice what they preach about multifactor authentication, password
hygiene and good security habits. What most may not realize is the severity of
the account security troubles facing us.
According to the report, one in five logins in 2021 was an account takeover
attempt, registration attacks rose 2.5 times in 2021 and there was an 85%
increase in attacks against login and signup pages.
FRAUD FOLLOWS THE PEOPLE
“There’s a direct relationship between fraud and consumer behavior,” the report
said. This is evidenced by a 3 time drop in gaming account attacks in 2021 after
businesses put more protections in place, and a possible move for many of those
fraudsters toward attacking travel websites as people begin to travel in the
wake of the COVID-19 pandemic.
In fact, a whopping 45% of all traffic on travel websites consisted of scraping
attacks harvesting customer data for use in further fraud attacks.
ATTACKS ARE MORE VOLATILE THAN BEFORE
Attacks have become more dangerous as cybercriminals gain access to an
ever-increasing array of tools, the report said. This allows attackers to hit
their targets harder, as evidenced by a 3 times increase over the normal attack
rate during the holiday season, and the fact that one in five social media
accounts were malicious, giving criminals a much broader reach.
In addition, volatility means that typical patterns and signs of attacks that
security teams (and software) look for are increasingly unreliable. “This is
especially true for credential stuffing attacks, which can cause extreme spikes
in volatility – some of the most intense attacks detected measured upwards of 76
million credential stuffing attempts per week,” the report said.
BOTS KEEP GETTING SMARTER
Eighty-six percent of all attacks in 2021 were automated, the report said. Those
bots are getting much smarter, too: Arkose Labs said that it needed to analyze
three times the data to detect modern bots than it used to need, and it expects
that to only grow in difficulty.
THE METAVERSE BECOMES A HOT FRAUD TARGET
Arkose Labs said that “master fraudsters,” which it defines as those with the
capabilities to build persistent attacks, invest capital and use fraud farms,
are far more likely to target metaverse companies. Those master fraudsters, it
said, tend to use microtransaction fraud, disruption of fair commerce scams and
spam to accomplish their goals.
SEE: Google Chrome: Security and UI tips you need to know (TechRepublic Premium)
Metaverse companies are also hot targets: In 2021 they faced 80% more bot
attacks and 40% more human attacks than other businesses. “With highly
persistent attackers and high stakes, companies investing in the metaverse must
put a premium value on trust & safety at login, registration, and in-platform
actions to protect digital identities in their virtual worlds,” the report said.
ASIA TAKES THE LEAD FROM RUSSIA AS THE #1 ATTACKER
Prior years saw Russia as the most common place for attacks to originate, but
2021 signaled a shift, the report said — now Asia is the top region for online
fraud origination. While it’s true that Russia is largely located in Asia,
Arkose Labs has a particular country in mind: China, it said, is the country
where most fraud attacks are now originating.
PREVENTING FRAUD IN 2022
Arkose Labs makes four recommendations for companies looking to fight online
fraud in 2022:
* * Employ advanced bot detection software powered by machine learning software
that is able to detect subtle signs of bots that are better than ever at
impersonating humans.
* Implement multi-layer user behavior analytics that can catch suspicious
behavior in what the report calls “a large gray area of traffic that is
neither obviously good or bad.”
* Move away from login challenge strategies like CAPTCHA, which are
increasingly able to be solved by off-the-shelf bot programs.
* Turn attack data into actionable insights, ideally using software that
takes a lot of the work away from security and IT teams and automates them
into easy-to-digest reports or a dashboard of data.
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Brandon Vigliarolo
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