There is little room for doubt that online fraud defences must be beefed up. Over 700 million consumer records were exposed to fraudsters in 2015 alone, according to the Gemalto Data Breach Level Index. And fraudsters can make use of all kinds of personally identifiable information (PII).
While credit card details may have been the most wanted information in past years, 2015 was the year when data from leading healthcare companies, government agencies, and similar organizations became the hottest commodity on the Dark Web. Data stolen in these breaches is typically used in fraudulent attacks on banking and e-commerce companies. A 2015 study by Javelin Strategy & Research on the impact of data breaches on consumers found that account takeover and new-account fraud will increase by 60 percent in the next three years. That means that the estimated $5 billion lost last year would grow to $8 billion in 2018.
Unfortunately, as fraud prevention technology advances, so do fraudsters’ tactics. Think of the cat and the mouse. As merchants and financial institutions become better at thwarting traditional fraud techniques, criminals are forced to adapt. The onus is now on the financial institutions and merchants to stay ahead.
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