November 20, 2015 — Account Takeover Fraud on Debit Cards Surge
Ryan Wilk, NuData Security VP of Customer Success, discusses how as Ecommerce merchants work to build a full service ecosystem within their web properties, the risk of valuable personal and financial information being stolen out of these accounts is on the rise.
A major trend that we have been seeing is the massive surge in fraudulent account creation. Just since February of this year we have observed a 100% increase in accounts being created for nefarious means. Between May – June, nearly half a billion accounts were flagged as fraud, up 28% from the first quarter of 2015. This highlights the growing value fraudsters are seeing in using aged accounts in an effort to circumvent traditional fraud detection systems that place a level of trust in an aged authenticated account.
Unlike other examples of EMV deployment around the world the US is taking a far different approach. Many issuers have decided to implement chip and signature as opposed to the more secure chip and pin technique being used by most other EMV deployments. While switching to chip and signature makes card cloning far more difficult, it has done nothing to make the POS transaction any safer. Overall we have simply converted from an inexpensive mag-stripe to a far more expensive embedded chip. On top of this, many US merchants have not yet switched over to EMV even as the October 2015 deadline has come and gone. Some merchants are even publically saying that they will disable EMV during the holiday season due to the added time it takes for the transaction to process, again showing that ease of use and speed of checkout is trumping security. All of these developments continue to point to a far reduced post-EMV e-commerce impact in the United States.
To see the full article at The Social Media Monthly, click here.