Friday, May 17, 2019
Worldwide adoption of mobile technologies is fueling innovative, new mobile fraud vectors, according to recent studies by ThreatMetrix and TSYS. Researchers found increased vigilance among consumers and service providers against pernicious, sophisticated attacks.
The H2 2018 Cybercrime Report, published by ThreatMetrix, a LexisNexis Risk Solutions company, reported a 107 percent increase in attacks on mobile account logins in the second half of 2018. The biannual study was based on 17 billion digital transactions processed on the ThreatMetrix Digital Identity Network, with 61 percent originating on a mobile device.
The 2018 Consumer Payment Study, published by Total Systems Services Inc. (TSYS), found 66 percent of consumers are using their financial institution's mobile app to access banking information. More than half of the respondents surveyed have changed email, online banking and ecommerce passwords, due to concerns about identity and payment card fraud, according to the study.
LexisNexis identified automated bot attacks, mobile identity fraud and advanced schemes targeting multiple organizations among emerging fraud trends. Citing metadata derived from the company's global identity network, Rebekah Moody, director, fraud & identity at LexisNexis Risk Solutions, suggested that recent high-profile data breaches are helping cybercriminals scale.
"Massive data breaches are becoming the lifeblood of these attacks," Moody said. "We're seeing a kind of networked fraud that targets multiple networks in an industry. Fraudsters are targeting more than one organization in our network."
Moody also observed changes in attackers' origination points. Historically, large bot attackers have been based in powerhouse economies, such as the United States, France and Germany. Recent studies found increasing volumes in Asia, Vietnam and other small economies, she noted.
Michael Yeardley, senior director, fraud & identity at LexisNexis Risk Solutions, pointed out that service providers must take a proportional response to fighting networked attackers. "It takes a network to fight a network," he said. "We're seeing the same fraudsters operating across different industries and industry segments. In many cases, cybercriminals employ the same technologies and strategies [as legitimate service providers] to harvest consumer data."
TSYS researchers reported that mobile technologies are embedded in consumers' lives, especially in self-service and banking-related sectors. The company's 2018 consumer payments study found mobile technology adoption and usage are strongest among young consumers.
"It is incredible to think back on how the payment landscape has evolved since 2011 when we began this study," report authors wrote. "Most notable is the massive growth in mobile technologies and their influence on our daily lives."
Following are additional insights from the TSYS' 2018 Consumer Payment Study:
"The actions consumers are taking reflect their concern," TSYS researchers wrote. For example, they noted, more than 50 percent of respondents have changed their email, online banking and ecommerce passwords. Many have also obtained and reviewed credit reports, looking for irregularities.
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