Turns out, crime does pay, at least for hackers committing identity theft over the Internet.

In the article, “Why Internet crimes go unpunished,” security expert Roger Grimes breaks down some interesting numbers around cybercrime, and how hackers are (to put it mildly) beating the odds. According to the FBI’s 2011 Internet Crime Report, of the more than 300,000 complaints that netted criminals $1.1 billion in 2010, law enforcement agencies convicted an average of one crook for every 50,635 victims. In other words, as Grimes eloquently states:

Steal someone’s identity and your odds of being caught are almost infinitesimal.

With all the hacks and fraud headlines 2011 will be remembered for, that’s definitely not the way we want to ring in the New Year. But as Grimes also warns, if we aren’t careful we could see history repeat itself as criminals not only continue defrauding computer users, but launch recycled attacks against the explosion of worldwide mobile device users, who could fall victim to the same old PC tricks. (more…)

Some say shopping on your smartphone or tablet is still in its infancy stage. While this may be true to a certain degree, however, several new holiday shopping reports show that mobile commerce is growing up pretty fast.

In the article, “Mobile commerce played an integral part of the 2011 holiday season,” online retailers capitalized on the smartphone and tablet phenomenon by boosting their m-commerce promotions during the past holiday season. As a result, a company spokesperson at Gilt Groupe, a US-based shopping website, said mobile-only promotions contributed to 20% of all sales during November and December, with mobile traffic and sales increasing well over 100% in December 2011 compared to December 2010.

“Mobile continues to play a large role in driving Gilt’s business. And we continue to utilize mobile as a channel to reach both existing and new customers wherever they are.”

North America electronics retailer, Crutchfield Corporation, also saw triple-digit increases in mobile traffic and sales, a trend the Crutchfield’s director of e-commerce, Todd Cabell, believes will continue to climb in the new year. (more…)

A California supermarket chain recently sent letters informing customers that a security breach had been discovered at 20 of their stores. The breach notification letter released by Lucky Supermarkets reads, in part:

“Dear Lucky Customer:

In the course of regular store maintenance, we discovered our credit/debit card readers at the self-check lanes ONLY in 20 stores (listed below) had been tampered with. Steps were taken immediately to remove the tampered card readers in the affected stores, as well as enhance security to every credit/debit card reader in all 234 stores in our company. We are not aware nor have we been notified of any reports that customer accounts were compromised.”

The “tampering” referenced in this letter has been described as skimming, which occurs when a separate piece of hardware is affixed to an ATM or point-of-sale terminal. The hardware is designed to blend in with the face of the machine and record card data whenever a card is swiped. Criminals either remove the skimming device later or retrieve data remotely via wireless Bluetooth or mobile SMS.  (more…)

Today’s traveler, whether on business or vacationing at their favorite surf or ski resort, is becoming increasingly dependent on their electronic devices. While our smartphones, tablets and laptops allow us to be more business efficient and instantly share our travel moments with family and friends, our favorite handheld devices are also vulnerable to being lost, stolen or hacked while on the road.

In the USA Today article, “Travelers at high risk of identity theft, experts say,” travelers lost a total of 11,000 mobile devices at the busiest U.S. airports this year. And that only accounts for items lost before travelers reach their intended destinations. In a study of 200 data breaches, Trustwave’s SpiderLabs found that hotels and resorts are prime targets for crooks stealing financial information, with respondents saying 38% of data thefts took place at hotels or resorts.

John Sileo, an identity theft and fraud expert who experienced identity fraud first-hand while traveling to Disney World, says people can be particularly vulnerable when they are unfamiliar with their surroundings. In his case, he suspected someone took a photo of his card number at the theme park before his bank informed him that his credit card had been shut down when someone attempted to make $3,000 worth of online charges to his card. (more…)

In what is considered “the largest identity theft takedown in U.S. history,” 111 individuals were indicted for “stealing the personal credit information of thousands of unwitting American and European consumers and costing individuals, financial institutions and retail businesses more than $13 million in losses over a 16-month period.”

The five different identity theft and forgery rings involved in these crimes targeted banks using a variety of techniques. From inside jobs to robberies and credit card fraud, this criminal network, based in Queens, New York but with ties to Europe, Asia, Africa, and the Middle East, was organized and profitable.

The criminals’ primary focus was on credit cards. Many of the defendants are accused of using stolen credit card numbers to purchase “tens of thousands of dollars worth of high-end electronics and expensive handbags and jewelry,” not to mention staying at five-star hotels. Even after the culprits are caught and prosecuted, their victims are still faced with the difficult task of having to repair their credit ratings and financial reputations. In some cases, that process can take years.” (more…)

Businesses have always been challenged with knowing whether a customer is genuine or not. It’s a critical part of any company’s daily business operations, and how they protect themselves from fraud losses that impact the bottom line. But with online merchants taking more orders from new and evolving technologies, the ability to identify the good from the bad is a great challenge.

As cyber criminals take advantage of various technologies to bypass businesses’ digital security efforts, any business that wants to succeed in today’s rapidly-changing business environment needs to have layered and effective security measures in place that allow them to know when they are dealing with a legitimate customer or a clever fraudster.  (more…)

Over the past 15 years, we have watched hackers’ evolution from “phreaking” phone systems, to hacking government agencies like NASA, and eventually creating viruses that take down networks. In the beginning, their primary motivations were fun, fame, and amusement. Over the past ten years, the game changed dramatically, from fun and fame to financial gain. Hackers targeted government agencies, then colleges, banks, retailers, credit card processors, hotels, and eventually, major multinational corporations.

Who are they hacking now? Well, everyone. And as journalist Brian Krebs has pointed out on his blog, Krebs On Security, they are targeting auto dealerships in a big way. Why? Because auto dealerships’ records include lots of Social Security numbers, which identity thieves can use to apply for credit cards in their victims’ names. (more…)