BizReport

RSS feed Get our RSS feed

News by Topic




BizReport : Ecommerce archives : June 02, 2016


Expert: Brands must stay ahead of fraudsters

Understanding the digital DNA of users and their unique online footprint can knit together trusted digital identities that fraudsters can't fake. This is one of the biggest challenges facing merchants.

by Kristina Knight

Vanita Pandey, VP of Product Marketing at ThreatMetrix: By analyzing digital identities, fraudulent behavior becomes far easier to detect because the digital footprint of a fraudster is often markedly different from a trusted user. This enables fraud, security, risk, compliance and customer engagement departments to have a unified view and risk model of a user across all digital channels. Leveraging the power of digital identities to establish trusted behavior unique to each user is the best way to rout out fraudsters and hackers, while stopping good customers and users from getting caught in the net.

Kristina: What impact are fraudsters having now on fintech?

Vanita: With the relentless and large-scale data breaches of recent years, sensitive personal information can be bought or sold at the touch of a button. As a result, many static identity assessment methods are no longer effective in verifying true user identity. Fraudsters are actually more adept at correctly answering step up authentication questions than legitimate users. Identities have been compromised, passwords hacked, locations hidden, devices infected and behavior mimicked by fraudsters launching unrelenting attacks on digital commerce. Virtually complete identities can now be bought or stitched together from information purchased on the dark web. The rise in new account fraud is particularly worrying. Fraudulent accounts using stolen but real identity information can appear wholly legitimate to unsuspecting businesses.
At the same time, these businesses are increasingly targeted by fraudsters using stolen identities to create new accounts or make payments. Fraudsters are able to use stolen information to create bust-out and ponzi fraud scenarios to defraud providers. As the volume grows, these fraudulent transactions will have an impact on the cost of the service and/or the amount of diligence that the businesses will require from their customers.

Kristina: What about the future - do you foresee businesses and consumers being able to fully protect their money from fraudsters?

Vanita: Cybercriminals are constantly evolving their attack methods, tactics, vectors and surfaces to dupe both consumers and businesses. For consumers, the key to being protected is to be aware and to make sure they aren't inadvertently leaking pieces of their identity puzzle. For example, digital interactions such as social media quizzes may seem interesting but they come with the huge cost of sharing personal data. Businesses, on the other hand, will continue to face attacks from cybercriminals who operate with huge resources, technology superiority and knowledge sharing. For businesses, the key will be to stay ahead of the cybercriminals through improved leveraging of data and real-time decision making.






Tags: ecommerce, ecommerce fraud, ecommerce trends, retail fraud, ThreatMetrix








Subscribe to BizReport







http://www.bizreport.com/2016/06/expert-brands-must-stay-ahead-of-fraudsters.html

 

 

Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.