Feeds

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

Path of least resistance

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

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

Internet Security Threat Report 2014

More from The Register

next story
FYI: OS X Yosemite's Spotlight tells Apple EVERYTHING you're looking for
It's on by default – didn't you read the small print?
Russian hackers exploit 'Sandworm' bug 'to spy on NATO, EU PCs'
Fix imminent from Microsoft for Vista, Server 2008, other stuff
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
Microsoft pulls another dodgy patch
Redmond makes a hash of hashing add-on
NOT OK GOOGLE: Android images can conceal code
It's been fixed, but hordes won't have applied the upgrade
'LulzSec leader Aush0k' found to be naughty boy not worthy of jail
15 months home detention leaves egg on feds' faces as they grab for more power
China is ALREADY spying on Apple iCloud users, claims watchdog
Attack harvests users' info at iPhone 6 launch
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
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.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.