Online fraud rings on the way up, 10,000 cases in the US

According to a new report from ID Analytics ID:A Labs, ring members may be either stealing victims identities or improperly sharing and manipulating personal identifying information such as dates-of-birth (DOB) and Social Security numbers (SSNs) on applications for credit and services. Furthermore, data indicates that wireless carriers are a top target, for instance, with many rings offering false credentials for people to sign up for mobile service.

The study also indicates that while many of these fraud rings are made up of two or more career criminals, surprisingly, others are family affairs or groups of friends. Researchers examined some fraud rings in detail, showing the conspirators locations, ages and relationships. And they found that many groups were bonding over identity manipulation.

The ID Analytics study has also examined more than a billion applications for bankcards, wireless services and retail credit cards and found identity fraud rings attacking all three industries, with wireless carriers suffering from the most fraudulent activity. The same source unveils that Georgia and South Carolina were two noted hotbeds of fraudulent activities across all three industries. Two bankcard fraud rings in Gainesville and Orlando, Florida each filed 200 applications.

Research also shows that many fraud rings are found in rural areas of the country, demonstrating the geo-agnostic nature of online fraud. Henderson pointed out that bigger and better crime ware means that criminals are less often resorting to digging through trash cans or stealing mail in order to capture sensitive data.

Another survey by McAfee reveals that crime ware syndicates aren’t going away anytime soon. Online financial fraud attacks have spread worldwide in Q3 2012, and theyre getting more sophisticated, aiming at large targets like banks instead of just individuals. For instance, Operation High Roller, a financial fraud ring identified earlier this year by McAfee Labs and Guardian Analytics, has now spread outside Europe, including to the US and Colombia. Cybercriminals set up an automated transfer system (ATS) that was used to attack European financial institutions, and set out to target a major US multinational financial institution.