Feeds

Americans lost $2.4bn to net fraudsters in 2003

Phishing fastest growing online crime

  • alert
  • submit to reddit

5 things you didn’t know about cloud backup

US consumers lost $2.4bn last year to online scammers and phishing attacks.

Most fraud was carried out by people gaining access to account numbers and passwords. The average loss for the victims was $1,200. Gartner surveyed 5,000 US Internet users which led to the estimate that just under 2m US citizens were hit by some form of online fraud last year.

Avivah Litan, research director at Gartner, said: "In most cases that are not inside jobs, thieves likely stole account numbers and passwords to get into accounts online or through telephone banking services,"

Phishing and key logging are the most popular methods to obtain information. Phishing attacks send consumers emails which look like they come from trusted financial institutions. They are directed to a website, apparently part of the bank or auction site, and trick people into entering passwords and user names. The identities collected are then defrauded. Fraudsters also use key-logging software to capture passwords entered on a computer.

According to Gartner, banks must strengthen security on their websites and phone banking systems. "Shared secrets" are the best way to solve this problem until proper systems are in place, it says. Shared secrets are responses to questions like "Name of your favourite pet".

Gartner looked at five types of fraud: new account fraud, cheque forgery, unauthorised access to checking accounts, illegal credit card transaction and fraudulent cash advances on credit cards. Unauthorised access to accounts grew fastest in the past year, almost half of reported incidents took place in the past year, compared with 34 per cent of illegal credit card purchases.

Checking account hijackings were second only to dodgy credit card purchases, using a stolen credit card to buy goods.

The press release is here. ®

Related stories

Lottery scams new flavour of the month
Fear of phishing hits e-commerce
Phishing scams cost UK banks £1m+

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.