Feeds

Scammers say 'No' to drugs, 'Yes' to fraud

Path of least resistance

  • alert
  • submit to reddit

SANS - Survey on application security programs

RSA 2005 Better credit card fraud detection techniques are encouraging crooks to look for easier pickings elsewhere. "The path of least resistance is moving on from credit card fraud to checking [current] account fraud. Fraud on debit cards, ATM transactions and money transfers are all on the rise," said Avivah Litan, research director at analyst Gartner.

Gartner's research suggests that cheque forgery and account fraud often happens offline. By contrast, data disclosures that lead up to credit card fraud predominantly occur online. An April 2004 Gartner survey estimated that 9.4m US adults were the victim of ID fraud over the preceding 12 months.

Gartner puts losses at $1.2bn a year, the bulk of which finds its way to criminal syndicates in Eastern Europe and African states. "Banks do not move at lightening speed, but they are losing money. It's a sensitive subject. They don't like to talk about it, but they are hurting," said Litan. Credit card fraud is "less risky and more lucrative than drug dealing" so criminal gangs are expanding into the arena.

Addressing losses through phishing scams and the like is driving spending on security technology in the financial services industry. By 2007, Gartner predicts 70 per cent of banks worldwide (and 75 per cent in the US) would move on from using static passwords alone to protect online accounts. "Banks won't necessarily be using tokens but they will be using something stronger than passwords," Litan said.

The analyst also said that stronger authentication needs to be supplemented by intelligent back-end fraud detection. "Good fraud detection techniques are in place for credit card fraud, so consumers will get a call if suspicious transactions are put through their account. This needs to be replicated across the (financial services) industry," she said. ®

Related stories

Passwords? We don't need no stinking passwords
Tech industry puts phish on diet
Florida man sues bank over $90K wire fraud
ID thieves rip off 7m US adults a year (July 2003 survey

RSA 2005

All the Reg stories from this year's conference

High performance access to file storage

More from The Register

next story
Parent gabfest Mumsnet hit by SSL bug: My heart bleeds, grins hacker
Natter-board tells middle-class Britain to purée its passwords
Obama allows NSA to exploit 0-days: report
If the spooks say they need it, they get it
Mounties always get their man: Heartbleed 'hacker', 19, CUFFED
Canadian teen accused of raiding tax computers using OpenSSL bug
Samsung Galaxy S5 fingerprint scanner hacked in just 4 DAYS
Sammy's newbie cooked slower than iPhone, also costs more to build
Snowden-inspired crypto-email service Lavaboom launches
German service pays tribute to Lavabit
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
Call of Duty 'fragged using OpenSSL's Heartbleed exploit'
So it begins ... or maybe not, says one analyst
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.