New research reveals account takeover fraud, in which fraudsters steal an established account with personally identifiable information(PII) attached to it, continues to beat credit card fraud. Account creation fraud has increased by more than 100% since February 2015.
NuData Security evaluated 5.1 billion behaviors in May through July. Of the over 500 million account creations analyzed, more than 57% were flagged as high risk or fraudulent, compared to 28% in February through April.
Nearly half of all account registration fraud attempted in May was tied to creating false accounts to deliver false product ratings.
NuData Security observed more than 270 million fraudulent or high-risk behavior events in May through July. These events were assessed through the following behavioral biometrics and data points, including more than:
◦ 32.8 billion keystrokes
◦ 9.3 billion clicks
◦ 388 million unique email addresses
◦ 191 million unique IP addresses
A significant portion of attacks in the past three months originated from China and the United States, however, incidents were traced back to as many as 151 countries. The top six sources of malicious behavior include:
◦ United States
◦ Saudi Arabia
◦ United Kingdom
Unlike previous e-commerce industry breaches, recent attacks are growing in size and targeting more valuable PII, which may include information such as social security numbers and bank account information, among other data. A data breach has a ripple effect that reaches far beyond the breached organization. Businesses must protect themselves from fraudsters who know more about their customers than they do.
For data, background and forecasts on Account Takeover Fraud: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).