News, Education and Events Decoding Digital Payments & Fraud

News, Education and Events Decoding Digital Payments & Fraud

Stolen PII Continues to Fuel Fraudsters Attacking Online Accounts

Stolen PII Continues to Fuel Fraudsters Attacking Online Accounts

Account takeover is back on the menu for fraudsters. While it never ceased to be a concern, recent high-profile hacks targeting payment card numbers reminded merchants that carding never went away, either. But two other data security breaches—and the kind of information stolen—have put the focus right back on the types of fraud that attack at the online account level, including new account creation and synthetic fraud. This week, Under Armour acknowledged that MyFitnessPal, its food and nutrition app, had suffered a breach resulting in the of theft information connected to 150 million user accounts. At the same time, published reports also claim Panera Bread had a vulnerability that exposed personal information of up to seven million users. Panera acknowledged the vulnerability but disputed the number of records affected.

Both events exposed personal information rather than payment card numbers. In a statement, Under Armour said the MyFitnessPal hack yielded usernames, email addresses, and encrypted passwords. Both sets of information could be used to round out stolen or synthetic identities used to commit fraud. Synthetic identity fraud is becoming especially pernicious. One recent measure said synthetic identities (amalgams of real and created information from several sources to create a single identity) account for as much as 80 percent of new account creation fraud. Another recent report tabbed merchant losses from account takeover fraud in 2017 at more than $5 billion—up 120 percent from 2016.

Several sessions at the upcoming CNP Expo will be devoted to fraud trends like account takeover, new account creation and synthetic fraud, including What Fraud Looks Like Right Now: Former Fraudster Shows You What You’re Up Against. That’s one of nearly 40 merchant-led presentations and panels at the CNP Expo, May 14-17 offering in-depth education and networking in the card-not-present fraud and payments space.

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What Fraud Looks Like Right Now