Fraudsters Skimming Gift Cards Before They’re Activated

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.

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Anonymous Hacks UN, Threatens Banks

The high profile data breaches continue in 2011 as Anonymous posted 1,000 user names and passwords taken from the United Nations. A hacker was able to access the server containing information for the United Nations Development Programme, the attack may have been just to demonstrate ability or to embarrass the UN as many of the posted passwords were weak. Anonymous is also threatening attacks against major financial institutions with their new ally, TeamPoison, in a hactivism effort they are calling Operation Robin Hood.

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General Retail, SEO Research & Fraud Prevention – The Connection

How can Search Engine Optimization research aid in fraud prevention? Fraudsters target fence-able goods, ones they can easily turn around and resell. With the same tactics used for SEO it is easy to see what products are most desired, which are the items fraudsters will go after for easy resale.

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Will Economic Downturn Lead to Increased Fraud?

There have been a number of recent articles outlining how the economic downturn will result in increased fraud, which I believe have inaccurately portrayed the real fraud risks in an economic recession. While many make the case the fraud will increase during times of economic uncertainty, we are also seeing companies paying closer attention the books and taking measures to limit losses while sales and margins continue to erode.

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Legislation in the Works that Could Affect Future Trends in Fraud

New legislation may provide fraudsters with legal loopholes. The Credit Card Accountability, Responsibility, and Disclosure (CARD) Act includes regulation that prohibits providing information about newly opened accounts before they are activated by customers, which could create an increase in fraudulent credit card applications.

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Layoffs? Watch Out

Don’t learn the hard way about what a disgruntled employee is capable of doing. Fannie Mae waited to remove root access from a terminated employee and almost suffered dire consequences. Managers need to think about procedures and practices to protect their companies exposure when letting employees go, especially those in payments or fraud departments.

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I Got You Once, And I Will Get You Again

If a fraudster or fraud ring can sucessfully perpetrate fraud, you can pretty much assume they will continue to do so until you stop them. Profiling three cases we look at the ‘typical’ cybercriminal, a computer savvy male under 30, and why they continue to engage in cybercrime even after being caught once before. Getting into the mindset of a cybercriminal may just help you stop them.

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Only Use Your ATM PIN at the ATM or You’ll Pay the Price

Many credit and debit cards boast zero fraud liability but there are fundamental differences in the legal obligations of issuers to cover fraud losses between credit cards and debit cards. Additionally, zero fraud liability may only apply to signature-based debit transactions for certain card brands – so using your debit card with the PIN at the point-of-sale may change your fraud liability rights.

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