Account takeover becomes primary type of fraud attack

Wednesday 26 November 2014 13:47 CET | News

Account takeover fraud is a primary means of attack from fraudsters and attack origins occurring outside of the US, a recent study shows.

According to the NuData Security Online Fraud Detection Threat research, account takeovers have beaten out credit card cycling as a more popular means of fraud, in which fraudsters attempt to hijack valid user accounts as opposed to using lists of stolen credit card details that are purchased and cycled through.

Findings reveal that high-risk login attempts jump nearly 14% in the four weeks leading up to Thanksgiving. High-risk logins are those in which fraudsters try to take over the accounts of users to make a quick profit at a time of large, unusual purchasing.

The report also indicates that more than 90% of high-risk login attempts are scripted, indicating sophisticated criminals with a good understanding of technology are developing small programs in order to quickly steal and buy using other users’ accounts. It is likely fraudsters download lists of stolen passwords from highly publicized data breaches.

Attacks are originating primarily outside of the US, the research shows. Criminals re-route their traffic through other countries in an attempt to evade detection. The bulk of account takeover attacks - more than 75% - are originating from or being routed through countries outside the US. Numbers reveal that 53% of attacks were routed through China, while 24% were routed through the US, 14% through Russia and 9% through other regions.

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Keywords: account takeover, fraud attack, NuData, online security, online payments, cards, high-risk login attempts, web fraud
Categories: Fraud & Financial Crime
Countries: World
This article is part of category

Fraud & Financial Crime