Hackers design sophisticated malware like banking trojans to steal users’ data, highlighting the need for awareness of effective countermeasures. A banking trojan is malicious software created for nefarious purposes, especially to steal confidential financial information. After gathering sensitive information, cyber criminals exploit it for monetary gain, often by selling it on the dark web. Banking trojans can have a devastating impact on individuals and organisations, leading to financial and reputational loss. To stay protected from these threats, you can employ robust cyber security measures, such as up-to-date antivirus software, regular system updates, and user education to recognise and avoid phishing attempts.

Banking trojans are among the most insidious online threats, jeopardising individual and organisational security. The year 2023 witnessed a substantial rise in banking trojan attacks. The global pandemic and resulting quarantine transitioned people towards online technology for daily tasks, which created a breeding ground for attackers. FBI warned that banking token attacks are among the top targets for attackers looking to exploit the situation.

So, let’s understand the banking trojan and its different types in detail.

What are Banking Trojans?

Banking trojans are malicious software developed to infiltrate banking systems and steal confidential information. The software targets the very core of our financial structure by creating a covert backdoor, allowing outside parties to gain access. They can also employ other deceptive techniques, such as spoofing, to mimic the bank client’s credentials.

How Do Banking Trojans Work?

Banking trojans use a range of deceptive tactics to infiltrate computer systems and extract sensitive information. For example, banking trojans can be embedded in phishing emails or downloaded as a part of pirated or fake copies of legitimate software. Once nestled within the host system, the trojan employs a suite of techniques to collect critical banking credentials and other sensitive data. These techniques include:

•     Extracting the cached credentials from the system and web browsers.
•     Stealthily monitoring the keystrokes when users type.
•     Searching the file system for stored passwords.

Sometimes, banking trojans also utilise a keylogger to intercept login details when a user navigates to other targeted sites. By operating in this manner, banking trojans amass valuable users’ information without their knowledge, exposing them to significant financial and identity theft risks.

Different Types of Banking Trojans

Banking trojans are diverse and exhibit a range of tactics to compromise mobile and desktop security. Here are some prevalent categories:

Keylogger Trojans

Keyloggers are a trojan type that clandestinely records users’ keystrokes on their devices. These keystrokes include usernames, passwords, PINs, and other credentials. They operate in the background, silently recording every keystroke and transmitting the collected data to the malicious actors.

Screen Scraper Trojans

Malicious actors design screen scraper trojans to capture screen content, including critical data, such as account details and transactions, and transfer them. Due to their ability to intercept account details, transactions, and even OTPs, they pose a threat to mobile apps.

Overlay Trojans

Overlay trojans are well-known for their ability to fabricate counterfeit login screens that superimpose legitimate apps, including mobile apps. When unsuspected users submit their information, they unwittingly provide it to threat actors. They are proficient in mimicking the interface and can be challenging to detect, posing a heightened threat to security.

SMS Intercept Trojans

These categories of the trojans intercept messages sent to the user’s device, including one-time passwords and authentication codes. By catching this crucial information, attackers bypass two-factor authentication and gain access to sensitive information.

Remote Access Trojans (RATs)

RATs grant attackers remote control over the infected device, empowering them to execute harmful actions. Attackers use this device for multiple malicious actions, such as executing illicit transactions or exfiltrating sensitive data.

Man-in-the Browser(MitB) Trojans

MitB trojans are used to infect web browsers and manipulate transactions. They trick users by altering the content displayed in the browser, creating a blurry line between reality and illusion, and engaging them in fraudulent activities.

Evolutionary Trojans

Banking trojans are continually evolving to evade detection and augment their capabilities. They may also incorporate advanced obfuscation techniques, anti-analysis methods, and even legitimate detection to expand reach.

Proxy Trojans

Proxy trojans are designed to reroute device traffic through a proxy controller. This redirection facilitates the interception and exchange of data between a user’s device and the banking system, potentially altering the transactions or stealing sensitive information.

SMS Spamming Trojans

SMS spamming trojans flood the user’s device with spam data, creating a smokescreen of confusion and illusion. They trick users by sending fake messages, resulting in monetary and informational loss.

Camouflage Trojans

The deceptive software masquerades as legitimate, often mimicking popular banking apps. Deceptive icons and name users give a sense of security, prompting them to download these trojan imposters.

Conclusion

Banking trojans are the most insidious threats in the growing cyber landscape. Understanding the risk of trojans and appropriate countermeasures is crucial to bolster your security and safeguard your financial information. The best way to protect yourself from banking trojans is to defend all surfaces equally. Banking trojans require a multilayered approach, encompassing all security factors. Additionally, you can safeguard yourself by deploying anti-malware software, extended detection and response, and email protection techniques.

Stay connected with Cyber News Live to learn more about new cyber threats and methods to mitigate the risks. For more information on banking trojans see What is a Banking Trojan by Check Point Software.