Feeds

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

Path of least resistance

  • alert
  • submit to reddit

5 things you didn’t know about cloud backup

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

5 things you didn’t know about cloud backup

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.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?