Your password is weak, whether you use 40 random characters or your dog’s name. With so many large data breaches leading to hundreds of millions of compromised credentials and payment cards in the past two years, it’s no surprise that e-commerce account takeover attempts have grown dramatically in recent months – to a degree we have never seen before. Previously, account takeover was primarily a banking issue, not something merchants had to deal with. Account takeover is an alarming trend that spans global airline loyalty programs, e-commerce transactions, social networking logins and virtually any web site leveraging username and password authentication. News of the latest cybersecurity concern should serve as yet another reminder that we live in a heightened state of risk where establishing online trust based solely on username and password or identity data is not sufficient. There are a number of factors that are contributing to the evolving fraud landscape namely that the Internet was not designed for security.  This places pressure on organizations to continually adopt new approaches to managing fraud like this growing account takeover threat. In this case, multiple layered controls including device intelligence are essential. As merchants extend more services online and allow customers to store payment information or get more convenient checkout via logged in vs. guest access, we’ll continue to see fraud migrating deeper into the e-commerce ecosystem. The account takeover problem will continue as consumers share usernames and passwords across dozens of online profiles and e-commerce logins, opening the door for attackers to access multiple accounts through a single compromised credential. Most of the account portals used by e-commerce merchants and loyalty programs were not built with the same level of security that their online transaction and fraud management systems have in place. So it’s a bit of a new risk, but fraudsters are aggressively exploiting the security gaps around things like simple username/password authentication. What can consumers and organizations do to protect themselves? Our recommendation for consumers is that they have unique username and password combinations for every online profile. This protects against attackers compromising one site and leveraging the same credentials to access all of the victim’s accounts and online profiles across the web. For businesses, we recommend implementing technology solutions that increase visibility to and recognition of devices for every online interaction so the organization can differentiate attackers from legitimate consumers. Some businesses believe that their products, services and loyalty offerings do not require the same level of protection as online bank accounts, so they leave them exposed to cyber criminals via simple authentication controls. As we’ve seen fraudsters will migrate to the path of least resistance and exploit the fact that most consumers re-use credentials out of convenience. In the digital age where consumers are increasingly represented by their devices the ability to know when there are authentication discrepancies between the data presented by the user and the device presenting those credentials is absolutely important to effectively controlling the threat. The authentication process will shift from a single view to a layered, risk-based authentication approach that will include comprehensive and real-time updates of consumer information. Conversations around the fact that the password is dead or dying have been circulating in the industry recently. What we don’t want is consumers getting tired of constantly changing passwords and giving up trying to protect themselves online. That is the worst case scenario that is becoming more of a reality as the days pass. Educated and aware consumers are still the best way to identify fraudulent attacks, and to keep identity data safe from hackers and devices free of malware. Increased adoption of biometrics, device intelligence and the sharing of authenticated and credentialed identities across industries will become commonplace to help combat account takeovers as they increase. Until then we need to find a password replacement. Learn more about 41st Parameter fraud detection and prevention solutions here.

While automotive loan originations grew 15 percent year over year in Q1 2014, a recent Experian Automotive study found that more consumers are continuing to drive older-model vehicles.

In our most recent webinar, I had the pleasure of moderating a panel session with four fraud experts spanning across many diverse backgrounds. The consistent theme throughout was that cyber criminals have become quite proficient at stealing data or account credentials. Once a cyber criminal has valid account data, they have incredible access to a broad range of possibilities. How an account is used; a real-time view of deposit and withdrawal patterns and what types of alerts and notification settings are in place. A determined fraudster may observe accounts for long periods to ensure they are able to make their move at the optimal time. One of the biggest issues is being able to tell “friend from foe”, particularly in light of the endless supply of perfect, disposable data. I posed this scenario to our panel and asked what organizations can do now to protect themselves: SCENARIO – Telling friend from foe Credit card companies encourage travellers to alert them in advance of unusual travel to avoid red flags or declines while out of town. This can be a double-edged sword. A fraudster with appropriate credentials can contact a credit card company a few weeks before a “trip” to alert them of planned travel. At the start of the “trip” the distraught fraudster can then contact the credit card company to report a stolen card and request a replacement be expedited to them at their “destination.” The result is a fraudster armed with a completely legitimate card they can use at their leisure and with little risk of detection. There were three key take-aways the expert panel recommended: Enhance your visibility. Without this important tactic, you won’t know what hit you. Fraudsters are armed with pristine identity data so they will look and act more like your best customers. Employee multiple security layers. You may be focused on ensuring that you know your customer, but does the transaction pattern fit normal behavior for the user? Malware could be embedded on the device. Are items such as language and other settings consistent with what you’d expect for your legitimate customers? Protect profile setups / online enrolment and reward programs the way you protect transactions. While the financial risk to your business may be limited, the potential regulatory exposure and brand reputation hit can be significant. It takes years to build your reputation with your best customers – but only seconds to destroy it. Undermining their trust in online or mobile interactions with your business has an immediate and destructive impact on loyalty. What do you think? Let us know.

Your password is weak, whether you use 40 random characters or your dog’s name. With so many large data breaches leading to hundreds of millions of compromised credentials and payment cards in the past two years, it’s no surprise that e-commerce account takeover attempts have grown dramatically in recent months – to a degree we have never seen before. Previously, account takeover was primarily a banking issue, not something merchants had to deal with. Account takeover is an alarming trend that spans global airline loyalty programs, e-commerce transactions, social networking logins and virtually any web site leveraging username and password authentication. News of the latest cybersecurity concern should serve as yet another reminder that we live in a heightened state of risk where establishing online trust based solely on username and password or identity data is not sufficient. There are a number of factors that are contributing to the evolving fraud landscape namely that the Internet was not designed for security.  This places pressure on organizations to continually adopt new approaches to managing fraud like this growing account takeover threat. In this case, multiple layered controls including device intelligence are essential. As merchants extend more services online and allow customers to store payment information or get more convenient checkout via logged in vs. guest access, we’ll continue to see fraud migrating deeper into the e-commerce ecosystem. The account takeover problem will continue as consumers share usernames and passwords across dozens of online profiles and e-commerce logins, opening the door for attackers to access multiple accounts through a single compromised credential. Most of the account portals used by e-commerce merchants and loyalty programs were not built with the same level of security that their online transaction and fraud management systems have in place. So it’s a bit of a new risk, but fraudsters are aggressively exploiting the security gaps around things like simple username/password authentication. What can consumers and organizations do to protect themselves? Our recommendation for consumers is that they have unique username and password combinations for every online profile. This protects against attackers compromising one site and leveraging the same credentials to access all of the victim’s accounts and online profiles across the web. For businesses, we recommend implementing technology solutions that increase visibility to and recognition of devices for every online interaction so the organization can differentiate attackers from legitimate consumers. Some businesses believe that their products, services and loyalty offerings do not require the same level of protection as online bank accounts, so they leave them exposed to cyber criminals via simple authentication controls. As we’ve seen fraudsters will migrate to the path of least resistance and exploit the fact that most consumers re-use credentials out of convenience. In the digital age where consumers are increasingly represented by their devices the ability to know when there are authentication discrepancies between the data presented by the user and the device presenting those credentials is absolutely important to effectively controlling the threat. The authentication process will shift from a single view to a layered, risk-based authentication approach that will include comprehensive and real-time updates of consumer information. Conversations around the fact that the password is dead or dying have been circulating in the industry recently. What we don’t want is consumers getting tired of constantly changing passwords and giving up trying to protect themselves online. That is the worst case scenario that is becoming more of a reality as the days pass. Educated and aware consumers are still the best way to identify fraudulent attacks, and to keep identity data safe from hackers and devices free of malware. Increased adoption of biometrics, device intelligence and the sharing of authenticated and credentialed identities across industries will become commonplace to help combat account takeovers as they increase. Until then we need to find a password replacement. Learn more about 41st Parameter fraud detection and prevention solutions here.

While automotive loan originations grew 15 percent year over year in Q1 2014, a recent Experian Automotive study found that more consumers are continuing to drive older-model vehicles.

In our most recent webinar, I had the pleasure of moderating a panel session with four fraud experts spanning across many diverse backgrounds. The consistent theme throughout was that cyber criminals have become quite proficient at stealing data or account credentials. Once a cyber criminal has valid account data, they have incredible access to a broad range of possibilities. How an account is used; a real-time view of deposit and withdrawal patterns and what types of alerts and notification settings are in place. A determined fraudster may observe accounts for long periods to ensure they are able to make their move at the optimal time. One of the biggest issues is being able to tell “friend from foe”, particularly in light of the endless supply of perfect, disposable data. I posed this scenario to our panel and asked what organizations can do now to protect themselves: SCENARIO – Telling friend from foe Credit card companies encourage travellers to alert them in advance of unusual travel to avoid red flags or declines while out of town. This can be a double-edged sword. A fraudster with appropriate credentials can contact a credit card company a few weeks before a “trip” to alert them of planned travel. At the start of the “trip” the distraught fraudster can then contact the credit card company to report a stolen card and request a replacement be expedited to them at their “destination.” The result is a fraudster armed with a completely legitimate card they can use at their leisure and with little risk of detection. There were three key take-aways the expert panel recommended: Enhance your visibility. Without this important tactic, you won’t know what hit you. Fraudsters are armed with pristine identity data so they will look and act more like your best customers. Employee multiple security layers. You may be focused on ensuring that you know your customer, but does the transaction pattern fit normal behavior for the user? Malware could be embedded on the device. Are items such as language and other settings consistent with what you’d expect for your legitimate customers? Protect profile setups / online enrolment and reward programs the way you protect transactions. While the financial risk to your business may be limited, the potential regulatory exposure and brand reputation hit can be significant. It takes years to build your reputation with your best customers – but only seconds to destroy it. Undermining their trust in online or mobile interactions with your business has an immediate and destructive impact on loyalty. What do you think? Let us know.