Account Takeover / Fraud Prevention

Cybercrime-as-a Service: How CaaS is Affecting the Security & Revenue of Your Business | Arkose Labs

January, 10, 20234 min Read

Cybercrime-as-a-service (CaaS) is quickly becoming the favorite of individuals and organizations looking to launch sophisticated digital attacks against enterprises. CaaS caused $6 trillion in damage last year alone, while experts predict some 33 billion accounts will be breached in 20231. These services include threats like:

  • distributed denial of service (DDoS) attacks
  • phishing campaigns
  • spamming
  • sale of stolen data and/or illegal products. 

CaaS is organized and carried out through various online platforms and marketplaces on both the internet and the dark web. With services like malware creation, exploit kits, malicious bots, and other automated attack tools readily available for sale, it’s no surprise businesses from e-commerce to telco and finance now find themselves vulnerable to attack. These "readymade" tools have essentially democratized the use of bots to attack company websites. This very-real predicament puts customer data at risk and can quickly send businesses into financial distress. 

Want to learn more about the economics of account takeover attacks? 

How does CaaS motivate fraudsters?

In general, money drives the efforts behind CaaS, which offers fraudsters a relatively inexpensive and available attack vector. Unlike traditional cybercrime, where bad actors needed expensive software and machines to carry out attacks, CaaS can be launched with a simple subscription and perhaps a one-time fee. Scammers today can utilize CaaS providers (and their tools) to easily launch attacks without having to acquire the necessary knowledge, experience, or gear. This means enterprises are up against well-resourced “middle men” vs. the end-fraudsters themselves. To make matters worse, many CaaS providers offer complete anonymity, making it difficult for law enforcement to trace the origin of a particular attack. 

Just like software as a Service (SaaS), bad actors working within the CaaS model can justify larger development teams, which makes their efforts far more effective and capable of blowing away more limited defenses made by in-house teams. Tech-savvy cybercriminals are earning more money today building SaaS-like products (and training sessions) that they sell to luddite fraudsters on the darknet. These plug-and-play cybercrime tools open the door for more low to no-skill cyber criminals to commit fraud so more bad actors can launch more attacks on companies. As a result, organizations must take extra care to ensure their systems are secure and up-to-date to protect against the growing threat of CaaS-enabled cybercrime.

What can businesses do to guard against CaaS?

As cyberattacks become more progressive, and macroeconomic conditions continue to decline, CaaS will only thrive. In fact, 79% of financial CISOs now say threat actors are deploying more sophisticated attacks2. Companies need to invest in more advanced security solutions to protect themselves—and their customers. This reality is not only costly but also time-consuming, as organizations must regularly update their security measures to ensure they are protected against the latest bot and human-driven threats. 

Businesses are also facing losses due to the increased cost of liability. CaaS providers are often located in countries with lax cybercrime laws, making it difficult for companies to take legal action against them. Even if businesses are able to successfully take legal action, the financial responsibility is usually substantial. As a result, businesses often have to bear the monetary burden and impacted ROI of malicious cyberattacks. 

To learn more about the cybersecurity threats on the horizon for 2023, check out this blog below. 

How does Arkose Labs fight CaaS?

What can CaaS really do to your business? Find out how to never find out. To catch more attacks, protect more customers, and save money, businesses need to consider:

  1. Investment: Invest in advanced security measures and third-party solutions to mitigate advanced and novel cyber threats 
  2. Updates: Ensure your systems are regularly updated 
  3. Education:  Make sure employees employ proper cyber hygiene 

At Arkose Labs, we understand the threat posed by CaaS and are dedicated to protecting businesses from malicious cyberattacks. With our global intelligence network (GIN) and 24x7 managed SOC, our proactive security solutions—which are tracking billions of sessions in real-time—are designed to detect and prevent the advanced threats resulting from CaaS. Our team of experts provide enterprises with the necessary advice and guidance to protect their data, customers, and revenue. 

Summary 

From ecommerce to fintech to telecommunications, CaaS is a growing business threat. By investing in advanced security measures, educating employees on cyber hygiene, and implementing effective technology, businesses can protect themselves from the risks and financial losses posed by CaaS. At Arkose Labs, we are committed to helping businesses protect their data and revenue from attack. 

To find out what Arkose Labs can do for your business, reach out for a demo anytime