The 2016 Fraud Landscape Is a Scary Place: Top Fraud Predictions from the Experts at Easy Solutions

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It should come as no surprise that 2016 will be yet another ever-changing and complex year for those fighting electronic fraud. Attacks are getting more sophisticated, some will start to use the dark web for hosting, and hackers are becoming more creative than ever before. We advise you to read on and remain proactive – the day you get hit with an attack will be a day too late to implement your strategy.

 

The Dark Web Becomes a More Complex Platform for Cyber Attacks – Ricardo Villadiego, CEO

“Today, the APWG estimates that the average takedown of a phishing attack takes around 34 hours, for an attack hosted on the surface (standard) web. As Man in the Middle/Man in the Browser and phishing attacks shift their infrastructure hosting to the dark web, it will take organizations significantly longer to deactivate threats, if they are even able to find the source at all.”

Inconvenience of EMV a Boon to Mobile Wallets (ApplePay, etc.) – Daniel Ingevaldson, CTO

“As the EMV deadline has passed, and more major retailers have implemented Chip-and-Pin capable machines, and as a result, stores are seeing their checkout times increase, as consumers must learn and then use the new EMV credit cards. One Wal-Mart executive said he expects widespread checkout problems and “anarchy” during the holiday season because of confusion over how to use the new cards, which must be “dipped” into the machine and left there for several seconds, as opposed to a momentary swipe.[1] As such, we expect that this will be a boon for digital wallets, including Apple Pay, which in comparison, are easier and faster to use than the new EMV readers. EMV may be just the holiday gift that these mobile wallets need in order to foster wide-spread adoption.”

Corporate Email Takeover Becomes More Common – David Castañeda, VP, Research and Development

“With a record number of credentials having been stolen, and password reuse rampant, corporate email takeover is likely to increase in 2016. Companies across the globe lost more than $1 billion from October 2013 through June 2015 as a result of corporate account takeover scams, according to the FBI. The scams use email (seemingly from someone within the company, or within a partner of the company) to trick small businesses into transferring large sums of money into fraudulent bank accounts. We know this because this scam was attempted on our clients and even us! (Read more about it here). And we foresee us seeing an increase in these attempted attacks next year.”

Adoption of EMV Drives Spike in Card-Not-Present Fraud – Bryan Jardine, VP, US Operations and Product Management

“I expect a dramatic uptick in e-commerce and other kinds of ‘card-not-present’ fraud to happen in the US, as it has happened in other countries when they adopted EMV (Chip-and-PIN) credit card technology. Like a whack-a-mole toy, fraudsters will not stop attempting to conduct credit card fraud. Instead, they will simply shift their attempts to more vulnerable channels, where Chip protection is rendered useless.”

Synthetic Identity Fraud on the Rise – Dee Millard, Fraud Prevention Consultant

“Synthetic identity fraud occurs when a fraudster uses personal information from various individuals (such as Social Security Number, Addresses, DOB) and combines them with additional fake information to create a new identity. They will then use this information to open new bank accounts or credit cards.  With all of the Personal Identifiable Information that has been stolen from breaches of healthcare companies like Anthem, Premera and Blue Cross, and government agencies like the Office of Personnel Management (OPM), we project this kind of fraud to grow significantly in 2016. This is also highly concerning when some of the information involves children’s social security numbers, as this is often undetectable until the child first starts to apply for credit, many years down the line.”

Scale and Success of the JPMorgan Chase Hacking Conspiracy to Inspire New Attacks – Leo Taddeo, Easy Solutions Board of Advisors and CTO at Cryptzone

“In 2014, JPMorgan Chase revealed that personal information of more than 83 million accounts were compromised by hackers. The stolen data was used by a group of men in a complex operation to artificially manipulate the price of certain publicly traded U.S. stock, profiting tens of millions of dollars from the scheme. The scale and sophistication of this attack – dubbed as the largest theft of customer data from a U.S. financial institution in history – shows that there is no limit to the ability and creativity of the today’s hacker. We foresee massive scale hacking operations to become more prevalent in 2016.”

The Democratization of Malware and Hacking Tools Continues – Javier Vargas, Research Manager

“Ten years ago, hacking tools were largely “closed-source” and developed and maintained by a small number of professional or amateur attackers. Times have changed. Democratization of knowledge is undoubtedly one of the most profound forces in the world today. However, what happens when also malicious software is democratized? We’ve witnessed the outbreak of malware code and hacking tool leaks, as well as an increased amount of public repositories of tools potentially exploitable for criminal activity – and we expect this to grow substantially throughout 2016 and beyond.”

[1] http://www.chicagotribune.com/business/ct-chip-cards-1102-biz-20151030-story.html

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