Search This Blog

Powered by Blogger.

Blog Archive

Labels

Footer About

Footer About

Labels

Showing posts with label Banking. Show all posts

Herodotus Trojan Mimics Human Typing to Steal Banking Credentials

 



A newly discovered Android malware, Herodotus, is alarming cybersecurity experts due to its unique ability to imitate human typing. This advanced technique allows the malware to avoid fraud detection systems and secretly steal sensitive financial information from unsuspecting users.

According to researchers from Dutch cybersecurity firm ThreatFabric, Herodotus combines elements from older malware families like Brokewell with newly written code, creating a hybrid trojan that is both deceptive and technically refined. The malware’s capabilities include logging keystrokes, recording screen activity, capturing biometric data, and hijacking user inputs in real time.


How users get infected

Herodotus spreads mainly through side-loading, a process where users install applications from outside the official Google Play Store. Attackers are believed to use SMS phishing (smishing) campaigns that send malicious links disguised as legitimate messages. Clicking on these links downloads a small installer, also known as a dropper, that delivers the actual malware to the device.

Once installed, the malware prompts victims to enable Android Accessibility Services, claiming it is required for app functionality. However, this permission gives the attacker total control,  allowing them to read content on the screen, click buttons, swipe, and interact with any open application as if they were the device owner.


The attack mechanism

After the infection, Herodotus collects a list of all installed apps and sends it to its command-and-control (C2) server. Based on this data, the operator pushes overlay pages, fake screens designed to look identical to genuine banking or cryptocurrency apps. When users open their actual financial apps, these overlays appear on top, tricking victims into entering login details, card numbers, and PINs.

The malware can also intercept one-time passwords (OTPs) sent via SMS, record keystrokes, and even stream live footage of the victim’s screen. With these capabilities, attackers can execute full-scale device takeover attacks, giving them unrestricted access to the user’s financial accounts.


The human-like typing trick

What sets Herodotus apart is its behavioral deception technique. To appear human during remote-control sessions, the malware adds random time delays between keystrokes, ranging from 0.3 to 3 seconds. This mimics natural human typing speed instead of the instant input patterns of automated tools.

Fraud detection systems that rely solely on input timing often fail to recognize these attacks because the malware’s simulated typing appears authentic. Analysts warn that as Herodotus continues to evolve, it may become even harder for traditional detection tools to identify.


Active regions and underground sale

ThreatFabric reports that the malware has already been used in Italy and Brazil, disguising itself as apps named “Banca Sicura” and “Modulo Seguranca Stone.” Researchers also found fake login pages imitating popular banking and cryptocurrency platforms in the United States, United Kingdom, Turkey, and Poland.

The malware’s developer, who goes by the alias “K1R0” on underground forums, began offering Herodotus as a Malware-as-a-Service (MaaS) product in September. This means other cybercriminals can rent or purchase it for use in their own campaigns, further increasing the likelihood of global spread.

Google confirmed that Play Protect already blocks known versions of Herodotus. Users can stay protected by avoiding unofficial downloads, ignoring links in unexpected text messages, and keeping Play Protect active. It is also crucial to avoid granting Accessibility permissions unless an app’s legitimacy is verified.

Security professionals advise enabling stronger authentication methods, such as app-based verification instead of SMS-based codes, and keeping both system and app software regularly updated.


Muzaffarpur Man Loses ₹3.5 Lakh in Remote Access App Bank Fraud

 

A resident of Muzaffarpur, Bihar fell victim to a sophisticated remote access application scam that resulted in the loss of ₹3.5 lakh from his bank account. The cybercrime incident occurred when the victim was searching online for courier service assistance and discovered what appeared to be a legitimate customer support contact number through Google search results. 

Scam operation 

The fraudsters posed as courier service agents and initiated contact with the unsuspecting victim. During the conversation, the criminals convinced the man to download and install a remote access application on his mobile device, claiming it would help resolve his delivery-related issues. Once the victim granted remote access permissions to the application, the cybercriminals gained complete control over his smartphone and banking applications . 

Financial impact  

Within minutes of installing the malicious remote access software, the fraudsters executed multiple unauthorized transactions from the victim's bank account. The scammers managed to conduct seven separate high-value financial transfers, draining a total amount of ₹3.5 lakh from the man's banking accounts. The transactions were processed rapidly, taking advantage of the victim's digital banking credentials that were accessible through the compromised device . 

Broader criminal network 

Local police investigations have revealed that this incident is part of a larger interstate fraud syndicate operating across multiple states. The cyber crime cell has traced the fraudulent transactions to various bank accounts, suggesting a well-organized criminal network. Law enforcement agencies suspect that the scammers strategically place fake customer service numbers on internet search platforms, impersonating official service providers to target unsuspecting consumers.

Rising threat 

This case represents an alarming trend in cybercrime where fraudsters exploit remote desktop applications like AnyDesk and TeamViewer to gain unauthorized access to victims' devices. The scammers often target individuals seeking customer support for various services, including courier deliveries, utility bills, and other common consumer needs. These social engineering attacks have become increasingly sophisticated, with criminals creating convincing scenarios to pressure victims into installing malicious software. 

Prevention and safety measures 

Cybersecurity experts emphasize the importance of digital awareness and caution when dealing with unsolicited support calls or online search results. Users should verify customer service numbers directly from official websites rather than relying on search engine results. 

Additionally, individuals should never install remote access applications unless they are completely certain about the legitimacy of the requesting party. Financial institutions and telecom providers are working to implement enhanced fraud detection systems to identify and prevent such scams in real-time .

Ghaziabad eSIM Fraud: Woman Loses ₹18.5 Lakh in Sophisticated SIM Swap Scam

 

A 54-year-old resident of Shipra Suncity, Indirapuram, Ghaziabad, fell victim to a sophisticated eSIM fraud that resulted in the loss of ₹18.48 lakh from her bank accounts. Arti Kaul was targeted by cybercriminals who posed as Airtel customer service representatives to execute an elaborate SIM swap scam. 

Fraudulent call 

On August 29, 2025, at approximately 1:00 PM, Kaul received a phone call from fraudsters claiming to be Airtel representatives. The callers convinced her that she needed to upgrade her SIM card from 4G to 5G as per company policy, presenting the upgrade as mandatory. Unaware of the deceptive nature of the call, Kaul stayed on the line with the fraudsters throughout the process.

Technical manipulation

At 1:10 PM, Kaul received an SMS from Airtel containing an OTP for eSIM card activation. Following this, she received a long numerical message on WhatsApp, along with subsequent SIM card update-related messages and additional calls from both the fraudsters and legitimate Airtel representatives. The victim shared the OTP with the callers, inadvertently giving them access to activate an eSIM on their own device, effectively hijacking her phone number. 

Once the fraudsters gained control of Kaul's phone number through the eSIM activation, they systematically drained her bank accounts. The theft occurred through more than 50 separate transactions between August 31 and September 1, 2025, targeting both her Axis Bank and HDFC Bank accounts. The total amount stolen reached ₹18.48 lakh. 

Discovery and legal action

Kaul discovered the fraud when her SIM card became inactive and she stopped receiving messages. Upon visiting her banks, employees informed her about the unauthorized transactions that had occurred over the previous days. She subsequently filed a complaint with the cyber crime police station, and an investigation has been launched.

This incident highlights the growing threat of eSIM-based fraud in India, where criminals exploit the convenience of digital SIM technology to rapidly hijack mobile numbers and access victims' financial accounts through intercepted OTPs. 

Safety tips 

Never share OTPs or activation codes: Avoid sharing one-time passwords (OTPs), eSIM activation codes, or QR codes with anyone, even if they claim to be from your telecom provider. No legitimate company will request these details over phone or SMS. 

Use only official channels: Always request eSIM conversions or upgrades directly through official carrier apps, websites, or physical stores. Do not click on unknown links, and never proceed with eSIM activation from unsolicited messages or calls . 

Act fast on signal loss: If your phone unexpectedly loses network signal or displays “No Service,” immediately report the issue to your mobile operator and notify your bank. This could indicate that your number has been hijacked.

Stay alert for phishing attempts: Be wary of calls, emails, or texts asking for personal, banking, or SIM-related information. Always verify the identity of the sender by reaching out through the provider’s verified customer care number. 

Monitor account activity: Regularly review bank and mobile account activity for unauthorized transactions or account changes. Set up alerts where available for any transaction or SIM change activity.

Following these safety steps drastically reduces the risk of eSIM-based fraud and helps in swift detection of account compromise.

How AI Impacts KYC and Financial Security

How AI Impacts KYC and Financial Security

Finance has become a top target for deepfake-enabled fraud in the KYC process, undermining the integrity of identity-verification frameworks that help counter-terrorism financing (CTF) and anti-money laundering (AML) systems.

Experts have found a rise in suspicious activity using AI-generated media, highlighting that threat actors exploit GenAI to “defraud… financial institutions and their customers.”

Wall Street’s FINRA has warned that deepfake audio and video scams can cause losses of $40 billion by 2027 in the finance sector.

Biometric safety measures do not work anymore. A 2024 Regula research revealed that 49% businesses throughout industries such as fintech and banking have faced fraud attacks using deepfakes, with average losses of $450,000 per incident. 

As these numbers rise, it becomes important to understand how deepfake invasion can be prevented to protect customers and the financial industry globally. 

More than 1,100 deepfake attacks in Indonesia

Last year, an Indonesian bank reported over 1,100 attempts to escape its digital KYC loan-application process within 3 months, cybersecurity firm Group-IB reports.

Threat actors teamed AI-powered face-swapping with virtual-camera tools to imitate the bank’s  liveness-detection controls, despite the bank’s “robust, multi-layered security measures." According to Forbes, the estimated losses “from these intrusions have been estimated at $138.5 million in Indonesia alone.”

The AI-driven face-swapping tools allowed actors to replace the target’s facial features with those of another person, allowing them to exploit “virtual camera software to manipulate biometric data, deceiving institutions into approving fraudulent transactions,” Group-IB reports.

How does the deepfake KYC fraud work

Scammers gather personal data via malware, the dark web, social networking sites, or phishing scams. The date is used to mimic identities. 

After data acquisition, scammers use deepfake technology to change identity documents, swapping photos, modifying details, and re-creating entire ID to escape KYC checks.

Threat actors then use virtual cameras and prerecorded deepfake videos, helping them avoid security checks by simulating real-time interactions. 

This highlights that traditional mechanisms are proving to be inadequate against advanced AI scams. A study revealed that every 5 minutes, one deepfake attempt was made. Only 0.1 of people could spot deepfakes. 

Account Takeover Fraud Surges as Cybercriminals Outpace Traditional Bank Defenses

 

As financial institutions bolster their fraud prevention systems, scammers are shifting tactics—favoring account takeover (ATO) fraud over traditional scams. Instead of manipulating victims into making transactions themselves, fraudsters are bypassing them entirely, taking control of their digital identities and draining funds directly.

Account takeover fraud involves unauthorized access to an individual's account to conduct fraudulent transactions. This form of cybercrime has seen a sharp uptick in recent years as attackers use increasingly advanced techniques—such as phishing, credential stuffing, and malware—to compromise online banking platforms. Conventional fraud detection tools, which rely on static behavior analysis, often fall short as bad actors now mimic legitimate user actions with alarming accuracy.

According to NICE Actimize's 2025 Fraud Insights U.S. Retail Payments report, the share of account takeover incidents has increased in terms of the total value of fraud attempts between 2023 and 2024. Nevertheless, scams continue to dominate, making up 57% of all attempted fraud transactions.

Global financial institutions witnessed a significant spike in ATO-related incidents in 2024. Veriff's Identity Fraud Report recorded a 13% year-over-year rise in ATO fraud. FinCEN data further supports this trend, revealing that U.S. banks submitted more than 178,000 suspicious activity reports tied to ATO—a 36% increase from the previous year. AARP and Javelin Strategy & Research estimated that ATO fraud was responsible for $15.6 billion in losses in 2024.

Experts emphasize the need to embrace AI-powered behavioral biometrics, which offer real-time identity verification by continuously assessing how users interact with their devices. This shift from single-point login checks to ongoing authentication enables better threat detection while enhancing user experience. These systems adapt to variables such as device type, location, and time of access, supporting the NIST-recommended zero trust framework.

"The most sophisticated measurement approaches now employ AI analytics to establish dynamic baselines for these metrics, enabling continuous ROI assessment as both threats and solutions evolve over time," said Jeremy London, director of engineering for AI and threat analytics at Keeper Security.

Emerging Fraud Patterns
The growth of ATO fraud is part of a larger evolution in cybercrime tactics. Cross-border payments are increasingly targeted. Although international wire transfers declined by 6% in 2024, the dollar value of fraud attempts surged by 40%. Fraudsters are now focusing on high-value, low-volume transactions.

One particularly vulnerable stage is payee onboarding. Research shows that 67% of fraud incidents were linked to just 7% of transactions—those made to newly added payees. This finding suggests that cybercriminals are exploiting the early stages of payment relationships as a critical vulnerability.

Looking ahead, integrating multi-modal behavioral signals with AI-trained models to detect sophisticated threats will be key. This hybrid approach is vital for identifying both human-driven and synthetic fraud attempts in real-time.

India Strengthens Cybersecurity Measures Amid Rising Threats Post-Pahalgam Attack

 

In response to a surge in cyberattacks targeting Indian digital infrastructure following the Pahalgam terror incident, the Indian government has directed financial institutions and critical infrastructure sectors to enhance their cybersecurity protocols. These instructions were issued by the Computer Emergency Response Team (CERT-In), according to a source familiar with the development, Moneycontrol reported.

The precautionary push isn’t limited to government networks — private sector entities are also actively reinforcing their systems against potential cyber threats. “We have been extra alert right from the Pahalgam attack, in terms of ensuring cyber security speedily not just by government agencies but also by the private sector,” the source stated.

CERT-In, India’s central agency for cyber defense, has released advisories to banking institutions and other essential sectors, urging them to tighten their digital safeguards. In addition, the government has engaged with organizations like NASSCOM to facilitate a collaborative cyber alert framework.

Recent attacks primarily involved DDoS, or distributed denial-of-service incidents, which overwhelm servers with excessive traffic, rendering websites inaccessible and potentially causing financial damage. Attempts to deface websites — typically for political messaging — were also reported.

This intensified focus on digital defense follows India’s military action against terrorist hideouts in Pakistan, occurring nearly two weeks after the Pahalgam incident, which resulted in the deaths of Indian tourists in Kashmir.

Moneycontrol previously highlighted that cyber surveillance across India's vital digital infrastructure is being ramped up following the Pahalgam attack and the subsequent Operation Sindoor. Critical sectors and strategic installations are under strict scrutiny to ensure adherence to robust cybersecurity practices.

Amid these developments, misinformation remains a parallel concern. Daily takedown requests under Section 69A of the IT Act have surpassed 1,000, as the government works with social media platforms to curb the spread of fake news, the source noted.

Mastercard to Eliminate 16-Digit Card Numbers by 2030 for Enhanced Security

 

In a strategic move to combat identity theft and fraud, Mastercard has announced plans to remove the traditional 16-digit card number from credit and debit cards by 2030. Instead, the company will implement tokenization and biometric authentication to enhance security.

Mastercard has been integrating biometric authentication into its payment ecosystem since 2022, allowing transactions to be completed with a smile or a hand wave. Now, the next phase involves replacing card numbers with tokens, which transform the 16-digit identifier into a unique digital code stored on devices. This ensures that card details are never exposed during online or contactless transactions.

The initial rollout of these numberless cards will be in collaboration with AMP Bank, with additional financial institutions expected to adopt the technology in the coming year.

Receiving a suspicious transaction alert from the bank can be alarming, and for good reason—payment fraud has been on the rise. In Australia, fraudulent card transactions amounted to A$868 million in 2023-24, up from A$677.5 million the previous year.

Data breaches continue to expose sensitive financial information, with major incidents involving Marriott, Starwood Hotels, and Ticketmaster affecting hundreds of millions of customers worldwide. In Australia, card-not-present fraud—where transactions occur without the physical card—accounts for 92% of all card fraud, increasing by 29% in the last financial year.

Although the Card Verification Value (CVV) was introduced to verify physical card possession, its effectiveness has diminished over time.

By removing the card number, Mastercard aims to reduce unauthorized transactions and minimize risks associated with data breaches. Without stored payment details, compromised databases will no longer expose customers’ financial information.

This move aligns with broader industry concerns about data storage and privacy, highlighted by incidents such as the 2022 Optus data breach, which leaked historical customer data. Eliminating stored card details prevents future attacks from leveraging outdated information.

Challenges in Adopting the New System

While digital banking users may find the transition seamless, concerns arise regarding accessibility. Elderly consumers and individuals with disabilities who rely on traditional banking methods might struggle with the shift to mobile authentication.

Additionally, shifting security reliance from physical cards to mobile devices introduces new risks. SIM swapping and impersonation scams already enable criminals to take over victims' phone accounts, and these tactics could escalate as digital payment systems evolve.

Biometric authentication presents another challenge—unlike credit card details, biometric data is immutable. If compromised, it cannot be changed, increasing the stakes of potential identity theft. Previous breaches, such as the BioStar 2 security lapse and Australia’s Outabox facial recognition exposure, highlight the risks of biometric data leaks.

As contactless payments continue to grow, physical cards may soon become unnecessary. In 2023, mobile wallet transactions in Australia surged 58%, reaching $146.9 billion. By October 2024, nearly 44% of transactions were conducted via mobile devices.

Retail innovations like Amazon’s Just Walk Out technology are accelerating this trend. Currently deployed across 70 Amazon-owned stores and 85 third-party locations, the system uses AI-powered cameras and weight sensors to enable checkout-free shopping. Companies like Trigo, Cognizant, and Grabango are also developing similar smart retail solutions, with trials underway in major supermarket chains like Tesco and ALDI.

However, even in frictionless shopping experiences, consumers must initially enter card details into payment apps. To eliminate the need for cards and numbers entirely, biometric payments—such as facial recognition transactions—are gaining traction as the next frontier in secure digital commerce.

EU Mandates Tougher Cybersecurity for Banking Sector

 


European Banks Strengthen Cybersecurity Amid Strict Regulations

European banks are being compelled to enhance their cybersecurity systems to comply with stringent regulations aimed at safeguarding critical infrastructure against cyber threats. The rise of digital tools in the financial sector has brought with it an urgent need for robust data protection systems and comprehensive cybersecurity measures.

Cyber risks remain a persistent challenge in the banking industry, with no signs of abatement. According to industry projections by Cybersecurity Ventures, global cybercrime costs are expected to escalate to a staggering $10.5 trillion annually by 2025. While these figures highlight the gravity of the issue, financial institutions have an opportunity to protect themselves from financial and reputational harm through the strategic implementation of dependable cybersecurity frameworks.

The Digital Operational Resilience Act (DORA)

On January 17, after a two-year implementation period, the Digital Operational Resilience Act (DORA) was signed into law. This legislation mandates financial services firms and their technology providers to enhance their resilience against cyberattacks and operational disruptions.

Under the new rules, financial institutions must:

  • Implement proactive risk management systems to identify and mitigate operational disruptions.
  • Establish rapid-response protocols to address technological challenges.
  • Conduct regular resilience tests to strengthen their digital defenses.
  • Continuously monitor and assess third-party IT risks across the supply chain.

The act affects over 22,000 institutions, including banks, digital banks, and cryptocurrency service providers. Non-compliance can result in fines of up to 2% of annual global revenue, with managers personally liable for breaches, facing penalties of up to €1 million.

Compliance with European cybersecurity regulations remains complex. Harvey Jang, Chief Privacy Officer and Deputy General Counsel at Cisco, notes that the financial sector operates under multiple overlapping regulations. These include the Network and Information Systems Directive (NIS), which focuses on critical infrastructure security, and the General Data Protection Regulation (GDPR), which standardizes data protection across the EU.

Each regulation introduces unique requirements, and national implementation adds further fragmentation. For instance:

  • The NIS Directive mandates member states to ensure high-security standards for critical infrastructure.
  • The GDPR emphasizes privacy, security, and breach management, significantly impacting financial institutions that control and process vast amounts of data.

DORA and NIS2: Strengthening EU Cybersecurity

DORA complements the updated NIS2 Directive, introduced in 2023 to address evolving cyber threats. Together, these regulations aim to bolster resilience across EU member states, ensuring financial institutions are prepared for the complexities of modern cyber threats.

However, a survey by Orange Cyberdefense revealed that 43% of UK financial institutions are still not fully compliant with DORA. Despite the UK’s departure from the EU, DORA applies to any financial institution operating within the EU, including those without an EU office.

Rising Awareness and Proactive Measures

Recent incidents, such as the 2024 Microsoft/CrowdStrike outage, have underscored the importance of proactive cybersecurity measures. These events have prompted organizations to allocate larger budgets to risk management teams and adopt a crisis-preparedness mindset.

"Forward-thinking organizations understand that it’s better to be prepared for crises when they occur, rather than if they occur," states the Boyle report. This shift in mindset has empowered companies to focus on readiness in an increasingly complex threat landscape.

The Role of High-Security Solutions

Companies like Salt, a Belfast-based cybersecurity firm, are addressing the growing need for high-security solutions. Salt serves industries such as finance, defense, and law enforcement in over 50 countries, including clients like BAE Systems and Mishcon de Reya.

Salt’s approach prioritizes customized, high-security communication systems that offer clients absolute control and exclusivity. “Our high-security clients demand systems that are independent and inaccessible once deployed — even to us,” explains Boyle. This assurance gives clients confidence and peace of mind in today’s complex threat environment.

As the financial sector navigates an increasingly digital and interconnected world, the importance of robust and proactive cybersecurity strategies cannot be overstated. Compliance with evolving regulations like DORA and NIS2 is critical to safeguarding financial institutions and maintaining trust in the industry.