Botnet attacks on card issuers are becoming more complex and harder to predict than ever before. Alongside the loud and fast attacks, there are now low and slow attacks that are designed to evade rate controls and appear more like normal user traffic.
In addition to 311 million bot attacks over the past year the ThreatMetrix Digital Identity Network detected and stopped more than 100 million fraud attacks in real time, a 52 percent increase year-on-year.
ThreatMetrix says when fraudsters get a new list of user credentials from the dark web, they launch a series of massive credential testing sessions that cause huge transaction spikes over a couple of days. Once a successful hit is made, those curated lists of known password and login combinations are taken to other sites to launch slower velocity attacks, which are harder to detect.
A staggering 264 million bot attacks were detected across e-commerce merchants this quarter alone.
In addition to botnets testing the validity of stolen identities, ThreatMetrix is seeing new ways to test credentials obtained through the dark web. Online businesses are inadvertently providing a perfect way for fraudsters to anonymously test stolen payment credentials, such as credit cards, before making a big ticket purchase.
Industries with low digital sophistication are easy targets. ThreatMetrix detected a series of $5 payments made with stolen credit cards targeting the charity sector.
Identity spoofing was also a strong attack vector in the FinTech space with fraudsters using cloaking technologies such as proxies or spoofed locations to mask their true identities and locations.
This has given rise to an increase in fraudulent new loan applications.
Mobile transactions grew 200% compared to the previous year and now make up one-third of the overall transactions volume in The Network. This is primarily driven by the increase in account logins via mobile devices. Growth is particularly strong in the financial services sector, where digital banking transactions have increased by more than 150% over the last year, with 42% coming from mobile.
Device spoofing and identity spoofing are the most prevalent mobile attack vectors says ThreatMetrix as fraudsters hack in to devices to access personal credentials.
Fraudsters are also capitalizing on unsecured wireless networks to intercept user credentials or are encouraging users to download hacked versions of legitimate apps via third party stores.
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