Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Attacks/Breaches

2/28/2017
09:01 AM
Connect Directly
Twitter
RSS
E-Mail
50%
50%

Apparel, Food Delivery Hardest Hit by Online Fraud Attacks

New Forter-Merchant Research Council report confirms that EMV chips have moved fraudsters away from point-of-sale to online.

The anticipated shift of retail cybercrime to ecommerce in the wake of the EMV point-of-sale adoption has officially begun, with the online fraud attack rate increasing by 8.9% in 2016, a new study shows. 

Attacks against apparel companies rose 69.9% in 2016 and attacks against food delivery companies jumped 49.8%, compared with the year before, according to the research released today by Forter in conjunction with the Merchant Research Council.

Domestic orders have also shown a notable rise in fraud attack rate, becoming 79% riskier than they were in 2015. This has had a direct impact on the bottom line risk, resulting in a shift from $2.70 at risk per $100 of sales in Q4 2015, to $4.98 in Q4 2016.

The study collected data on the attack rate, aggregated by yearly quarters. The researchers define the attack rate as the average dollars at risk out of every $100 of sales.

"Now that the fraudsters have been pushed online, it’s much tougher to steal high-priced goods like jewelry or Rolex watches," says Michael Reitblat, CEO at Forter, a fraud detection firm. "In the past they would have gone for luxury items, but now it’s easier to attack smaller, cheaper items like apparel."

Reitblat adds that the same principle holds true with the increased cybercrime in the food delivery sector, especially now that the fraudsters have access to service-based tools that make it easier for them to use one stolen credit card to set up fraudulent websites that can steal hundreds of orders.

"What they do is use a stolen credit card to set up a fake account on a website or Facebook account," Reitblat explains. "Then they will use that stolen credit card for other, high-volume fraudulent transactions. So they’ll set themselves as a third party to GrubHub, for example, take your money and still won’t pay GrubHub."

While it’s true that fraudulent activity has moved online, the shift is still in its early stages, notes Randy Vanderhoof, director of the U.S. Payments Forum.

"I think it will be really interesting to see what the numbers are in another two years once transition to EMV chips has been fully implemented," Vanderhoof says. "I think that the retailers that do business both in physical stores and online need to be careful. They need an integrated fraud security strategy and can’t let their guard down in their physical stores."

Forter's Reitblat says retailers must continue to invest in security technology such as behavioral analytics to track fraud before it happens. He also thinks retailers will deploy two-factor authentication and use biometrics as the technology becomes more mature. 

"We’re also working with a lot of retailers to share fraud data with us so if we see a new attack method, we can warn the retailers," Reitblat says. 

Related Content:

Steve Zurier has more than 30 years of journalism and publishing experience, most of the last 24 of which were spent covering networking and security technology. Steve is based in Columbia, Md. View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Navigating Security in the Cloud
Diya Jolly, Chief Product Officer, Okta,  12/4/2019
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Current Issue
Navigating the Deluge of Security Data
In this Tech Digest, Dark Reading shares the experiences of some top security practitioners as they navigate volumes of security data. We examine some examples of how enterprises can cull this data to find the clues they need.
Flash Poll
Rethinking Enterprise Data Defense
Rethinking Enterprise Data Defense
Frustrated with recurring intrusions and breaches, cybersecurity professionals are questioning some of the industrys conventional wisdom. Heres a look at what theyre thinking about.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2019-16772
PUBLISHED: 2019-12-07
The serialize-to-js NPM package before version 3.0.1 is vulnerable to Cross-site Scripting (XSS). It does not properly mitigate against unsafe characters in serialized regular expressions. This vulnerability is not affected on Node.js environment since Node.js's implementation of RegExp.prototype.to...
CVE-2019-9464
PUBLISHED: 2019-12-06
In various functions of RecentLocationApps.java, DevicePolicyManagerService.java, and RecognitionService.java, there is an incorrect warning indicating an app accessed the user's location. This could dissolve the trust in the platform's permission system, with no additional execution privileges need...
CVE-2019-2220
PUBLISHED: 2019-12-06
In checkOperation of AppOpsService.java, there is a possible bypass of user interaction requirements due to mishandling application suspend. This could lead to local information disclosure no additional execution privileges needed. User interaction is not needed for exploitation.Product: AndroidVers...
CVE-2019-2221
PUBLISHED: 2019-12-06
In hasActivityInVisibleTask of WindowProcessController.java there?s a possible bypass of user interaction requirements due to incorrect handling of top activities in INITIALIZING state. This could lead to local escalation of privilege with no additional execution privileges needed. User interaction ...
CVE-2019-2222
PUBLISHED: 2019-12-06
n ihevcd_parse_slice_data of ihevcd_parse_slice.c, there is a possible out of bounds write due to a missing bounds check. This could lead to remote code execution with no additional execution privileges needed. User interaction is needed for exploitation.Product: AndroidVersions: Android-8.0 Android...