Now that the Security and Exchange Commission requires public companies to disclose the costs of cyber attacks and a national data breach notification law is in the works it is expected that more companies will be purchasing insurance policies to protect against data breaches and cyber crimes.
Using online sales on Black Friday and Cyber Monday as a leading indicator for the percentage of retail sales that will be made online in the United States during the fourth quarter The Fraud Practice estimates 6.02 percent of total retail sales in the United States to be transacted online during Q4 2011.
While the Credit CARD Act of 2009 included several provisions to protect consumers from hidden fees and expiration dates with gift cards, these popular holiday gifts can still be vulnerable to fraud. A gift card scam that made rounds this past holiday season involved skimming gift cards before they were purchased and waiting until they were sold and activated to access the funds.
During Visa’s fiscal fourth quarter credit card purchases grew 10 percent reaching $228 billion. Debit cards brought in more volume, $288 billion, but this was only an 8.1 percent increase for the quarter and marks the first time Visa credit card spending increased more than debit card spending since 2005.
Chase and Wells Fargo had been trialing $3 debit card usage fees in a couple pilot markets but have since decided to discontinue the monthly charge. SunTrust and Regions Banks also eliminated usage fees they were planning to implement on check cards. In early November Bank of America, who was originally going to adopt a $5 monthly fee beginning in 2012, was the last major bank to eliminate the usage fee.
A two year operation by the FBI called Operation Ghost Click has led to the arrest of six hackers who had built a botnet of over four million computers contributing to $14 million in click fraud. The federal indictment names seven suspects who were able to generate a lot of traffic by redirecting their malware victims to the ads or sites that earned the fraudsters revenue.