Feeds

ID thieves target enterprises

Grifters Inc.

  • alert
  • submit to reddit

Using blade systems to cut costs and sharpen efficiencies

ID thieves are going corporate. Assuming the identity of consumers to obtain loans and credit cards under assumed names has become the US's fastest growing crime. Now fraudsters are applying similar tricks against potential enterprise victims.

Here's how it works. Crooks set up websites under the names of legitimate companies and apply for merchant status with credit card payment processing firms. Next they put orders through these bogus sites using credit cards, raking off a tidy percentage in the process. Crooks direct these illicit revenues to separate accounts in the hope they'll be able to draw out a sizable wedge by the time their ruse is rumbled. The trick is to obtain numerous merchant accounts for each bogus site.

The scam sounds inefficient and straightforward to spot but numerous companies have already fallen victim. New-York based software company T-Data was landed with a bill for $15,000 in credit card fees. "They are flying under the radar on each transaction unless someone does a whole lot of work," said Jeff Duhl, T-Data's owner, who remains critical of merchant's patchy record in recognising bogus transactions.

T-Data is far from alone in suffering because of the scam. More than 50 other organisations have already become victims to corporate identity theft, MSNBC reports. ®

Related stories

Invasion of the identity snatchers
World's largest ID theft felon faces 14 years' jail
Spammer charged in huge Acxiom personal data theft
Gov.uk launches anti-fraud website

Boost IT visibility and business value

More from The Register

next story
Secure microkernel that uses maths to be 'bug free' goes open source
Hacker-repelling, drone-protecting code will soon be yours to tweak as you see fit
How long is too long to wait for a security fix?
Synology finally patches OpenSSL bugs in Trevor's NAS
Roll out the welcome mat to hackers and crackers
Security chap pens guide to bug bounty programs that won't fail like Yahoo!'s
Israel's Iron Dome missile tech stolen by Chinese hackers
Corporate raiders Comment Crew fingered for attacks
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
Researcher sat on critical IE bugs for THREE YEARS
VUPEN waited for Pwn2Own cash while IE's sandbox leaked
Four fake Google haxbots hit YOUR WEBSITE every day
Goog the perfect ruse to slip into SEO orfice
prev story

Whitepapers

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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.