Payments and risk industry veteran Kevin Sprake joins The Fraud Practice as the company’s new Managing Partner where he will continue to expand client relationships and advance the online learning and professional certification programs created specifically for the eCommerce payments and fraud prevention industry.
Fraud solution providers need to be prepared to competitively position and message against the new Amazon Fraud Detector risk modeling services. Here’s what risk vendors and sales professionals need to know about Amazon’s new risk management service offering and how to prepare for prospects or current clients considering this new service.
Fraud This Holiday Season Could be Even More Difficult to Detect as Fraud Rings Expand Mule Networks
Fraudsters use money mules for laundering as well as to receive and reship goods purchased with stolen identities. A large mule network provides more low risk shipping addresses for fraudsters to utilize as well as more options for strategically chosen shipping locations less likely to trigger fraud detection systems. A down economy and millions of people out of work makes it easier for fraudsters to recruit money mules with work-from-home schemes.
Money mules range from knowingly complicit to those duped by fraudsters. Whether they believe they are a holiday gift wrapper or know they are aiding and abetting fraud, these mules become more willing to participate in activity they know, or even think might be, illicit when out of work or when times are tough.
While there are some questions around the number of data breaches thus far, 2020 is shaping up to be a record year in terms of number of records compromised at least. According to a study on data breaches and compromised data during the first six months of the year, there have been just over 2,000 data breaches but 27 billion records exposed, which is 12 billion more than the number of records compromised in all of 2019.
A common theme throughout 2020 has been the acceleration of digital adoption across both businesses and consumers. We take a look at the lingering impacts on payments and risk across multiple studies and reports comparing consumer and fraudster activity between 2019 and 2020.
A FinTech lawyer reported that as many as one-fifth of his merchant clients have been contacted by their payment processors about the possibility of increasing their reserve requirements. This comes as Square increased provisions for merchant transaction losses to $79.3 million in the first quarter, a three-fold increase from the same quarter last year.
The pandemic has not only made business more difficult for many merchants, but also the acquiring banks that underwrite their merchant accounts.
Turning ransomware attacks into data breaches if the ransom isn’t paid, what’s being called exfiltration+encryption attacks, can be damaging on multiple levels. In the first half of this year 11 percent of ransomware attacks have adopted this tactic.
ID Ransomware, a website and free tool that allows ransomware victims to upload a ransom note or sample encrypted file to identify the ransomware used against them, had over 100,000 submissions between January 1 and June 30, 2020.
According to a recent survey, more than one-third of merchants have seen at least 10 percent of their user accounts taken over in the past year while more than one-quarter of merchants have no measures in place to protect against account takeover. Meanwhile, less than 8 percent of consumers were notified about account takeover incidents by the merchant custodian of their compromised account.
There’s a good reason why web administrator credentials sell for over $3,000 on fraudsters forums: because they are highly valuable to fraudsters. It’s imperative for merchants and any organization with an online presence to keep theirs safe, and now more so than ever as fraudsters have found clever ways to hide credential stealing malware to compromise customer and website user data.
Once fraudsters takeover a website, here are some of the things they can do:
Guest Post Written by: Daryn Griggs, Co-Founder, Payshield, Certified eCommerce Fraud Professional
The events of COVID 19 have seen a massive increase in online shopping around the world including people who have never shopped online before. Naturally with an increase in online shopping comes an increase in online fraud, and the biggest fraud increase? Friendly Fraud!