News, Education and Events Decoding Digital Payments & Fraud

News, Education and Events Decoding Digital Payments & Fraud

Surge in Mobile Leads to Surge in Account Creation Fraud: Report

Surge in Mobile Leads to Surge in Account Creation Fraud: Report

In the second quarter of 2017, fraud targeting online merchants continues to grow, with new account creations seeing the highest rate of attacks, according to a new report from ThreatMetrix. The San Jose-based antifraud technology provider, which reports quarterly on trends it sees drawn from transactions across its network, said fraud attacks overall are growing in size, complexity and frequency. The company detected 144 million attacks in Q2 2017, about double the amount it saw in the same quarter two years ago. It also noted that fraudsters are increasingly targeting mobile devices, which account for 47 percent of online transactions and 55 percent of new account creations for its customers.

As mobile becomes the way most consumers prefer to engage with merchants, banks and others, fraudsters are finding new room to operate and more vulnerability—especially by creating new fraudulent accounts. ThreatMetrix found that more than 10 percent of new account creations are fraud attacks as cybercriminals leverage stolen and synthetic identities to cash out at the expense of unprotected merchants.

The company also shared shifting patterns it sees from a geographic perspective. In the past quarter, South America—especially Brazil—was the origin of a significantly growing number of new account attacks targeting global media companies. Europe, on the other hand, seems to be the starting point for fraudsters conducting account takeover attacks mostly aimed at U.S. e-commerce sites and European banks.

The ThreatMetrix 2017 Q2 Cybercrime Report is available on the company’s Website. Also, Rebekah Moody from ThreatMetrix will join CardNotPresent.com Editor-in-Chief D.J. Murphy on Sept. 7 for a Webinar that will drill down into these data points and others contained in the report.

Read the Next CNP Report Article