More than 90 million attempted cyber attacks across industries were launched in the third quarter, representing a 20% increase over the previous quarter. Fraudsters are now using bots and botnets to run massive identity testing sessions in order to penetrate fraud defenses.
The “ThreatMetrix® Cybercrime Report: Q3 2015 says the increase in attacks can largely be attributed to the growing sophistication of cybercriminals and the amount of customer data available for interception.
During the second quarter of 2015, the ThreatMetrix Network detected more than 45 million e-commerce attacks, a 25% increase over the previous quarter. This signifies billions of dollars in potential financial loss, as well as potential damage to reputation and brand credibility that has been successfully avoided.
Given the recent EMV mandate in the U.S., brick-and-mortar retailers are updating POS systems to increase in-store security, leading cybercriminals to shift their attention to digital channels. E-commerce brands and retailers should be on high alert due to fraud making its way to the online space.
Botnets are the new data breach threat, as opposed to Advanced Persistent Threats (APT), which attack the network from the inside out; botnet breaches are targeting the outside-in via digital identities. The Company says it sees very high daily traffic at leading retailers due to low frequency attacks using botnets designed to evade rate and security control measures and thus detection.
E-commerce transactions broken down consist of the following percentages and risks:
78 percent of transactions were account logins, with five percent high risk
21 percent of transactions were payments, with 3.2 percent high risk
One percent of transactions were account creations, with nearly seven percent high risk
In the financial services industry, attacks increased 30 percent over the previous quarter, with more than 15 million fraud attempts. As online lending and alternative payments providers represent significant financial gain for fraudsters, this segment is continuing to experience a very high volume of attacks.
As mobile usage continues to rise, consumers are more connected than ever before, creating new opportunities for fraudsters, who are making the online lending space a target for their attacks. Users are transacting more overseas and across time zones and PII is at risk of interception during these occurrences.
Financial services transactions broken down consist of the following percentages and risks:
85 percent of transactions were account logins, with 2.5 percent high risk
13 percent of transactions were payments, with three percent high risk
Two percent of transactions were account creations, with two percent high risk
The Network also detected nearly 20 million media industry attacks during Q3, a 25 percent increase from Q2. Many of the fraud attempts involved fake listings or fake reviews, an increasing trend that should be a top concern in the upcoming shopping months. Many top retailers are dealing with thousands of fake reviews on a daily basis.
For data, background and forecasts on Cyber Attacks: 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].
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