The accelerations in eCommerce Delivery, Marketplaces and the gig economy have companies scrambling to make better decisions, faster. Model-based applications are being applied to address wider areas of fraud, as they can detect threats more precisely and efficiently.
A recent report analyzes the $211 Million in data breach fines imposed on European Union organizations by the General Data Protection Regulation (GDPR).
The state of Arkansas shut down their unemployment application website which exposed the PII of nearly 30,000 applicants and Illinois faced a similar issue. Meanwhile, the U.S. Secret Service reports that hundreds of mules are being used to funnel unemployment benefits to an organized fraud ring in Nigeria falsely filing for benefits with stolen identity information.
More than 3,800 data breaches occurred in the first half of this year, a 54 percent increase from the first half of 2018. The number of consumer records compromised in data breaches increased 52 percent over this time, with 4.1 billion records compromised in the first half of 2019 and 3.2 billion of those coming from just eight breaches.
This comes as the Identity Theft Resource Center tallied the most records compromised in 2018 and highest number of data breaches in 2017 in more than a decade.
Issuing banks and financial institutions lost over $1.6 billion from stolen or synthetic identities used in credit card applications plus an additional $600 million from application fraud on demand deposit accounts (DDAs) last year. These figures were reported by Aite Group, who forecast total application fraud losses to nearly reach $2.8 billion in the United States by 2020.
It is estimated that by 2020 application fraud on new credit card accounts will cause nearly $2.1 billion in fraud losses while application fraud on new DDAs or bank accounts will cost US financial institutions $694 million.
Fraudsters find more success with getting phishing campaigns delivered as well as with open and click rates when sending from an existing, known and trusted email address. This may be why a recent report found that 20 percent of phishing email attacks against employees are sent from email addresses a fraudster has taken over. Most phishing attacks, however, are brand impersonation attacks, with Microsoft being the most impersonated.
For their Email Fraud & Identity Deception Trends report, Agari surveyed more than 300 US and UK businesses with 23,053 reported phishing incidents in the fourth quarter of 2018. Analysis found that 20 percent of these phishing emails came from compromised email accounts, while 67 percent impersonated a trusted brand with deception or a look-a-like domain.
According to the Identity Theft Resource Center, who just released their 2018 End-of-Year Data Breach Report, the number of data breaches fell by nearly 25 percent compared to 2017, but the number of compromised records containing personally identifiable information (PII) more than doubled to 446.5 million.
Although the total number of data breaches declined in 2018, according to the Identity Theft Resource Center (ITRC), it was still the second highest number of data breaches reported in one year since the ITRC has been keeping track.
A recent survey from CaptialOne found that 26 percent of consumers believe Cyber Monday is the riskiest day of the year to shop online while 85 percent of US consumers believe the risk of identity fraud is elevated during the holidays. Financial fraud was the top concern amongst Americans, surpassing consumers who were most concerned about potentially overspending during the holiday season.
How well would your fraud management program perform if your organization depended on it for doing business with customers from countries like Ukraine and Nigeria? Now what if we said your business was facilitating money remittances to these countries? WireCash is doing just that, and we sought to uncover how this could be possible by talking directly with the company that found success at the intersection of one of the highest risk industries and some of the highest risk countries in terms of online fraud.
The use of custom modeling and risk analytics also allows WireCash to be more consumer-friendly than they were in their ATMCash days, and compared to most online MSBs. While WireCash may sometimes require strong authentication or verification techniques, they try to eliminate the need for this and reduce friction for most new customers through use of risk modeling and amassing many neutral or low risk signals. They have also leveraged this experience and insight to enter new markets where others wouldn’t go or would only tread lightly. WireCash today helps consumers send money to Nigeria, Ukraine, Russia, Armenia and other countries that present high risk. Money Service Businesses providing remittances to these countries have tended to offer limited services or maintain several day waiting periods.
A computer science professor and two graduate students invented a device used to check ATMs and card readers to detect the presence of a skimming device. Dubbed the Skim Reaper, the New York Police Department has been using a handful of these devices since February to combat card skimming.
Card skimming at ATMs, gas pumps and other locations is a major source of the compromised payment card information used to commit fraud today. Card skimmers install an additional piece of hardware known as a read head to copy a payment card’s data, but a new device was designed to detect their presence, while providing an alert to the ATM user that a card skimmer may be installed.