Understanding the Impact OF
Brand Impersonation on Community and Regional Banks


Coming Soon:
Allure Security SPOOF '25 Report for Community and Regional Banks
Many organizations fail to realize that online brand impersonation is more than a security problem.
Deloitte warns that generative AI will drive U.S. bank fraud losses to $40 billion by 2027 – an increasing trend supported by Allure Security’s data observing a 450% increase in online bank impersonations in 2024. Scam tools built on generative AI for sale on the dark web for as little as $20 enable fraudsters to quickly create targeted phishing messages, deceptive content, and malicious code for injection into mobile banking apps for example.
Scams and fraud seriously threaten account holders’ trust and loyalty. LexisNexis’s 2023 True Cost of Fraud study reports that 80% of financial institutions rank “reduced customer satisfaction” as the top impact of fraud, damaging customer relationships. Online impersonations and account takeover fraud increase customer churn, damage brand reputation, and increase operational costs. The LexisNexus Fraud Multiplier reveals that each dollar lost to fraud costs an additional $4.40 related to investigation labor, recovery expenses, fines, and legal fees.
Aberdeen Group reiterates the financial impact of online brand impersonation, finding the direct and indirect costs of account takeover fraud resulting from online brand impersonations cost banks 2.7% to 7.5% of annual revenue. With generative AI accelerating fraud and related costs, scams have become a “material business risk” rather than simply a cost of doing business.
Online brand protection is an opportunity to both protect customers and improve a bank's bottom line.
Understanding the Impact Brand Impersonation on Banks
• Victim Account Loss
• Support Costs
• Takedown Costs
• Fraud Costs
• Increased Customer Churn
• Reduced Loyalty/Satisfaction
• Decreased Digital Service Adoption
• Increased Marketing/Acquisition Costs
• Loss of Employee Morale
• Opportunity Costs
Below illustrates understated, conservative estimates of the financial impact of online brand impersonation on banks.
1.9% – 3.5%
0.8% – 4.0%
2.7% – 7.5%
Assets, return on assets, and net income calculated using data from Federal Deposit Insurance Corporation (FDIC) “Quarterly Banking Profile Second Quarter 2024”
Financial Revenue Impact
Assets**
$500M
$1B
$10B
Return on Assets**
1.11%
1.11%
1.04%
Net Income**
$5.55M
$11.1M
$104M
ATO Impact on Revenue (Rounded)
$150 – $363K
$300 – $833K
$3 – $8M
Request your SPOOF '25
Community and Regional Bank Report
Be the first to get it when it is published!
Related Articles
-
Diamond Bank Addresses Spoof WebsitesDiamond Bank is a community bank with 14 branches and thousands of customers...
-
SharkBot Trojan Embedded in Mobile Banking ApplicationDuring a recent partner mobile malware scan, Allure Security identified a rogue mobile...
-
Online Brand Impersonation and the Hiring ProcessOnline brand impersonation undermines a company’s reputation in the market. Studies show that...
-
Cost of Online Brand Impersonation: Acquisition and LoyaltyOnline brand impersonation is an insidious threat. Compared to more straightforward attacks, ransomware,...
-
Financial Impact: Online Brand ImpersonationThe genuine threat of online brand impersonation is that it can damage a...
-
Webinar: IT Leaders on Online Impersonation FraudSecurity against the Rising Threat of Impersonation Scams Cybersecurity remains a back-and-forth contest...
-
Damn Filters Recovers from Search Engine PoisoningPoisoned Search Engine Results Damn Filters, a leading company in Kansas, sells online...
-
Regional Bank Protects their Brand and CustomersEliminating the Precursor to Phishing and Fraud A regional bank managing $30 billion...
-
Top Running Shoe Brand Neutralizes Fake Online ShopsFraudulent Online Shops A 100-year-old running apparel company popular among U.S. runners faced...