About 70% companies utilizing anti-bot solutions lost revenue as bot-driven account fraud increases, shows new report

According to the Kasada 2022 State of Bot Mitigation report, about 70% of companies saw a 6% or more decrease in their profits, because of bot-driven account fraud. Furthermore, 40% of companies faced a 10% decrease in their revenues this year because of web bots.

As per the report, it was found that the reason for such attacks is the manual resources needed to keep a check on these bot accounts. Companies are already paying a lot to cope with these attacks but still, a lot more is needed to be done for the sake of security. It doesn’t include the money only, but also the time and any resources utilized to perform the delicate task of securing accounts.

Speaking of bot-driven fraud, it means that any ATO which stands for Account Takeover Attack, fake account creation which means impersonating oneself, and any other kind of fraud on digital media with the help of bots, automating tasks, are labeled as bot-driven account fraud.

But what’s the reason for companies to experience such a massive downfall? Well, the answer is simple and self-explanatory. Companies are relying more on bot-driven accounts and are unaware that those accounts are fake and made for conducting fraudulent business. Now an increase in bots over a platform will cause a website crash, data leaks, increasing infrastructure cost, reputational damage, etc. which will eventually result in bad customer service. These are the two factors that cause a downfall in a company’s revenue.

Some other facts that the Kasada report uncovered were:

1. 83% of respondents in this study claimed that bots are becoming smarter day by day, which makes it hard for security staff at a company to discover the truth.

2. Around 62% reported that they have spent a massive five hundred thousand dollars to detect and mitigate the bot-related issues over the platform.

3. Credential stuffing, denial of inventory, CAPTCHA defeat, carding/cracking, web scraping, fake account creation, and usage of DDoS which is short for Distributed Denial of Service were listed as the most difficult types of bots to prevent entering into the system.

This 2022 State of Bot Mitigation Report commissioned by Kasada and conducted by Atomik Research which is an online creative market agency aimed at providing its clients with meaningful qualitative and quantitative research, surveyed 202 US Security and IT experts that were managing bot mitigation. The survey was conducted from August 18th, 2022 till August 29th, 2022.

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