Only 6% of brands can protect their customers from digital impersonation fraud, Memcyco report found

Have you ever received a call from your “bank” about suspicious activity, only to discover it was a scam? This is just one example of digital impersonation fraud, a rapidly escalating problem. Now, a new report from Memcyco, a provider of digital trust technology designed to protect companies and their customers from digital impersonation fraud, found that this type of fraud is far more pervasive than many realize.

According to Memcyco’s inaugural 2024 State of Digital Impersonation Fraud Resilience report, most companies are ill-equipped to combat digital impersonation fraud, often learning about attacks only after customers report them.

The survey highlights that over half of the respondents (53%) admitted their current cybersecurity measures fail to address website impersonation attacks effectively. Another 41% acknowledged their protections are only partial. Alarmingly, just 6% of brands believe they have robust solutions in place, despite 87% recognizing the severity of website impersonation, and 69% having been victims of such attacks.

Cybercriminals exploit fake websites to trick users into revealing their login credentials, leading to account takeover (ATO) attacks. In 2023 alone, these scams netted over $1 billion, more than triple the amount stolen in 2020, according to the U.S. Federal Trade Commission.

Despite 72% of companies implementing systems to monitor for fake website versions, 66% said they primarily learn about these attacks through customer reports. Additionally, 37% become aware of attacks through “brand shaming” by affected customers on social media.

This gap in protection not only jeopardizes customer security but also raises questions about companies’ responsibility to reimburse victims of fraud. With 48% of survey respondents anticipating new regulations mandating customer reimbursements, effective fraud prevention is becoming essential to avoid financial losses.

“One of the most alarming findings is that website impersonation scams are proliferating because cybercriminals exploit the limited visibility companies have into these attacks,” said Israel Mazin, Chairman and CEO of Memcyco. “This highlights a critical blind spot in cybersecurity — the challenge companies face in safeguarding their customers online.”

Conducted with Global Surveyz Research, the report is based on responses from 200 full-time employees, from directors to C-level executives, in the security, fraud, digital, and web industries. These organizations operate transactional websites with over 10,000 monthly visits.

To counter the surge in website impersonation scams, Memcyco offers a suite of solutions that provide real-time alerts and deep insights into the scope and impact of such attacks, aiming to secure end-users on every website visit.

As digital threats continue to evolve, the importance of robust cybersecurity measures cannot be overstated. Companies must stay vigilant and proactive to protect their customers and their reputations from the growing menace of digital impersonation fraud.

Memcyco offers a cutting-edge suite of AI-driven, real-time digital risk protection solutions specifically designed to combat website impersonation scams. These solutions safeguard both companies and their customers from the moment a fake site goes live until it is taken down. With Memcyco’s advanced external threat intelligence platform, companies gain complete visibility into the attack, the attacker, and each victim. This comprehensive approach helps prevent account takeover (ATO) fraud, ransomware attacks, and data breaches before they can occur.

At the heart of Memcyco’s technology is its innovative “nano defender.” This technology continuously detects, protects against, and responds to attacks in real-time, securing tens of millions of customer accounts worldwide. It significantly mitigates the negative impacts of such attacks on workload, compliance, customer churn, and company reputation.

Founded in 2020 by Ramel Levin, Memcyco has quickly established itself as a leader in the digital security space. Their solutions offer unparalleled protection, ensuring that both companies and their customers can navigate the digital landscape with confidence and peace of mind.

Meanwhile, Global Surveyz, also founded in 2020, is a prominent research company that provides comprehensive survey reports a services. They handle the entire process of creating insightful and impactful B2B or B2C reports for any target market, offering valuable data and insights to drive business decisions.

The full report can be found here.