- News & Events
September 16, 2013
The Aite Group, an independent financial research and advisory firm, interviewed online merchants, credit card issuers and payment card associations which manage online payment transactions. Aite found that even though merchants improved how they secure account numbers under the Payment Card Industry Data Security Standard (PCI-DSS), cybercrooks have improved their ability to steal credentials and match them with account numbers stored on web sites whose security was lax.
Julie Conroy, an Aite Group analyst said, “All interviewed merchants, (who) are seeing a higher fraud rate, report a big jump in account takeover activity.” In an internetretailer.com piece, Conroy observed that the cause appeared to be related to database breaches that have taken place over the last year-and-a-half.
Conroy pointed to LivingSocial, the daily-deal site as an example. When LivingSocial was breached, hackers were able to access user names and passwords and use them to compromise customer accounts on other e-commerce sites. Conroy noted that a breach, such as the one LivingSocial suffered, is often made worse by consumers who utilize the same user name and password for multiple financial accounts. And, once crooks have a user’s credentials, they order goods online, ship them to an address other than the legitimate cardholder’s and sell them. Considering the cyberthieves didn’t have to pay for the goods, they have a profit margin Donald Trump could envy.
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Posted by Dan Rampe
Tags: Account Takeover, Account Takeover Fraud, Bank Fraud, CNP fraud, Cookieless Device Identification, Cookies, Credit Card Fraud, Cyber attacks, Database Breach, Device Detection, Device Fingerprint, Device Fingerprinting, Device ID, Fraud Prevention, Hacking, Identity Spoofing, Identity theft, LivingSocial, Malware, Malware Protection, Man-in-the-Browser Detection, MitB, Mobile fraud, Online Fraud, Payment Card Industry Data Security Standard (PCI-DSS), PII, ThreatMetrix Cybercrime Index, ThreatMetrix Global Trust Intelligence Network, TrustDefender Cybercrime Protection Platform, Web Fraud