NuData’s Robert Capps comments on recent findings that account takeover (ATO) for online payment accounts in apparel, food and beverage see high spikes.<
Researcher’s spotted a 131 percent spike in account takeover attacks for online payment accounts with the Apparel and Food and Beverages industries seeing the highest spikes in fraud at 69.9 percent at 49.8 percent, respectively, between Q4 2015 to Q4 2016.
The 2017 Fraud Attack Index found that spike occurred following the October 2015 EMV chip adoption deadline in the US and that there was a 79 percent increase in the risk of fraud for domestic holiday orders, according to the study conducted by Forter and the Merchant Risk Council (MRC).
The study found fraudsters had shifted from Merchant account takeover(MTO), where a their breaks into accounts on the merchant’s website to pass as a returning customer to online payment account takeover (OTA), where they break into online payment services like PayPal, Apple Pay, and Amazon Payments.
“NAF and ATO attacks against merchants frequently involve complex reshipping, reselling, and loyalty/rewards fraud schemes,” NuData Security Vice President of Business Development Robert Capps told SC Media. “These fraudsters target online retailers and purchase shippable goods using the compromised accounts, after which the products are resold through online auction sites and retail marketplaces.”
For the complete article, go here.