A report from Europol states that payment card fraud is a low-risk and highly profitable criminal activity that brings EU-based organized crime groups a yearly income of around 1.5 billion euros. These criminal assets can be invested in further developing criminal techniques, used to finance other criminal activities, or even facilitate the start-up of legal businesses.
Payment card data is the ideal illicit Internet commodity, as it is internationally transferable. Europol, in its report on Internet-facilitated organized crime (iOCTA), concluded that organized crime groups (OCGs) clearly benefit from globalization, using foreign payment card data to purchase goods and services online. Credit card information and bank account credentials are the most advertised goods on the underground economy’s servers; according to Europol’s intelligence, around 60 percent of payment card fraud losses, totaling 900 million euros, were caused by card-not-present (CNP) fraud in 2011.
Within the major card-not-present fraud investigations supported by Europol, the main sources of illegal data were data breaches, often facilitated by insiders and malicious software. In most of these cases, the quantity of compromised card details was substantial, reaching hundreds of thousands or millions, and enabling criminals to sell the data in bulk on tonline.
In the US, the FFIEC updated the security requirements recommended for banks. One of the recommendations encourages financial institutions to employ complex device identification. Oregon-based security firm iovation goes a step further by offering device reputation technology, which builds on device identification by offering real-time risk assessments. The technology exposes any history of fraud associated with a particular device or group of devices, and investigates relationships between devices and accounts that have been associated with fraud to expose fraudsters working in cahoots to steal from online businesses.
Robert is a personal security and identity theft expert contributor to iovation. He is the author of 99 Things You Wish You Knew Before Your Mobile was Hacked! Disclosures.
ROBERT SICILIANO, CEO of IDTheftSecurity.com is fiercely committed to informing, educating, and empowering Americans so they can be protected from violence and crime in the physical and virtual worlds. His "tell it like it is" style is sought after by major media outlets, executives in the C-Suite of leading corporations, meeting planners, and community leaders to get the straight talk they need to stay safe in a world in which physical and virtual crime is commonplace. Siciliano is accessible, real, professional, and ready to weigh in and comment at a moment's notice on breaking news.
- Card Not Present Transaction Fraud can be stopped
Credit card fraud, despite measures to stomp it out, still runs rampant in America. Forty-seven percent of credit card fraud consists of card-not-present (CNP) fraud. This includes payments via snail mail, phone and Internet. The U.S. is headed towards EMV (chip) card technology, notes Scott Zoldi in FICO’s Banking Analytics Blog. Though chip-based authentication technology may
- 23% of Online Fraud is “Friendly”
Friendly fraud occurs when a customer makes an online purchase with a credit card and then, once the merchandise has arrived, calls the credit card company, claims never to have received the item, and requests a chargeback. The merchant has no way of proving the legitimacy of this card-not-present transaction, and is forced to refund
- Javelin Study Shows Increased Credit Card Fraud Risk
Consumers, businesses, retailers, and even the media are becoming numb to news about data breaches. Not a week goes by when we don’t hear of another major breach affecting thousands or even millions of customer accounts. Criminal hackers are getting smarter and savvier all the time, and they often have better technology than the banks and
- European Cybercrime Not Slowing Down
Device reputation authority iovation published a report revealing that the number of fraudulent transactions originating from Europe has risen dramatically over the past two years. From April 2011 to April 2012, iovation prevented approximately 15 million fraudulent online transactions in Europe. That’s an increase of 60% over the previous year. The rate of European fraud
- Online Credit Applications Ripe For Fraud
We currently rely on easily counterfeited identification, and we transmit credit card applications using the phone, fax, Internet, or snail mail, all of which are relatively anonymous methods. Fraudulent credit card applications are the most lucrative form of credit card fraud. Identity thieves love credit cards because they are the easiest accounts to open, and they
One Response to “Europol: Credit Card Fraud Spells Low Risk and High Profits”
[...] A report from Europol states that payment card fraud is a low-risk and highly profitable criminal activity that brings EU-based organized crime groups a yearly income of around 1.5 billion euros. http://robertsiciliano.com/blog/2013/03/17/europol-credit-card-fraud-spells-low-risk-and-high-profit… [...]
Leave a Comment
You must be logged in to post a comment.