Account Takeover Threat Skyrockets: Survey Reveals 347% Increase
A recent survey by TransUnion (iovation) has revealed a staggering 347% increase in account takeover attempts globally, with shipping fraud attempts rising by 391%. This alarming figure underscores the urgent need for enhanced identity verification and anti-fraud measures to combat the growing threat of cybercrime.
Pandemic Exacerbates Identity Theft Issues
The COVID-19 pandemic has exacerbated identity theft issues, with a recent US report highlighting a surge in unemployment claims and associated increase in stolen PII (Personal Identifiable Information). The FBI is calling for better identity verification to prevent identity-related fraud.
EU Payment Council Report Highlights Key Cybercrime Tactics
A 2020 report from the EU Payment Council highlights key cybercrime tactics, including:
- Social engineering
- Malware
- APTs (Advanced Persistent Threats)
- Denial of service
- Botnets
- Monetization channels
The report notes that criminals are adapting their approach, reverting to “old school” types of fraud such as lost and stolen cards, often combined with social engineering.
Anti-Fraud Techniques Must Balance Detection Capability and Friction
To combat the growing threat of cybercrime, anti-fraud techniques must minimize friction while maximizing detection capability across multiple channels. This requires a seamless payment model that integrates identity verification services to ensure a balanced security-usability model.
Cybercriminals Continue to Test Anti-Fraud Measures
Despite advances in anti-fraud technology, cybercriminals continue to test the waters by using a mix of social and technical tactics to circumvent exceptional anti-fraud measures. The human element remains crucial in preventing fraud, and customers must be protected from trickery through clever measures.
Darknet Activity Continues to Thrive
The dark web continues to thrive as a conduit for delivering stolen identity data, including:
- Forged ID documents
- Stolen ID data
- Credentials
Researchers at PrivacyAffairs have tracked the prices of various illicit items on dark web marketplaces, revealing the alarming extent of cybercrime activity.
Ecosystem Approach Essential for Anti-Fraud
The widening ecosystem incorporating apps like Signal, Telegram, and WhatsApp is part of a move to automate the business of cybercrime. To counter this, anti-fraud measures must adopt an ecosystem approach, ensuring no gaps in detection capability. This requires FDP (Fraud Detection and Prevention) spend to be as broad as possible, with vendors actively engaged in understanding new fraud methods.
The Bottom Line
Account takeover is a growing threat that demands immediate attention from payment providers and financial institutions. The pandemic has exacerbated identity theft issues, and cybercriminals are adapting their tactics to evade anti-fraud measures. To stay ahead of the curve, a comprehensive approach is required, incorporating:
- Identity verification services
- ML-enabled AML checks
- FDP spend that covers 360 degrees of potential attack vectors