Feeds

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

Path of least resistance

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

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

Secure remote control for conventional and virtual desktops

More from The Register

next story
Knock Knock tool makes a joke of Mac AV
Yes, we know Macs 'don't get viruses', but when they do this code'll spot 'em
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Why weasel words might not work for Whisper
CEO suspends editor but privacy questions remain
DEATH by PowerPoint: Microsoft warns of 0-day attack hidden in slides
Might put out patch in update, might chuck it out sooner
BlackEnergy crimeware coursing through US control systems
US CERT says three flavours of control kit are under attack
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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?
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
The hidden costs of self-signed SSL certificates
Exploring the true TCO for self-signed SSL certificates, including a side-by-side comparison of a self-signed architecture versus working with a third-party SSL vendor.