Online fraudsters have always been a shifty bunch. The worst part is, it’s their chameleon-like nature that is part of their ongoing success, as well as every fraud managers’ nightmare.

According to the Banking Times article, “Criminals shifting to card-not-present fraud because of chip and PIN success,” they are on the move again. Data recently released by FICO, a leading provider of analytics and decision management technology, shows that across Europe card-not-present (CNP) fraud has dramatically increased, accounting for 72% of all fraud losses between March 2009 and March 2011. The big reason for this change? Chip and PIN technology, which has helped reduce counterfeit fraud by 60% over the same period.

In comparison, a similar study conducted three years ago found that ‘card present’ fraud accounted for 60% of Europe’s credit card fraud. But since European banks adopted the smartcard payment system, that number has dropped significantly over the past couple of years.

So, remaining consistent to their adaptive nature, it appears that cyber criminals have shifted their attention to CNP schemes like online fraud, targeting countries and business systems with weaker detection and prevention capabilities, said Martin Warwick, FICO’s Fraud Chief in Europe, the Middle East and Africa. (more…)

As Internet traffic grows exponentially, the ability to identify all online transactions is an ongoing challenge for any organization. This challenge is even more significant for businesses whose sales revenues rely on online payments. For them, the ability to analyze and decipher the difference between a valid transaction and a risky one is critical to their business success.

As we inch closer to the holiday season, a pair of recent articles highlight the increasing volume of online transactions that are just around the corner for online merchants. If there is a security takeaway from these trends, it’s that IT fraud teams better be prepared for significant increases in online transactions over the next few weeks. (more…)

Last week, the Internet Crime Complaint Center (IC3) released its 2009 Annual Report on Internet fraud activity, and the results were staggering. According to the report, in 2009 U.S. citizens lost nearly $560 million to online scams. That number more than doubled the $265M in online fraud losses reported in 2008. The IC3, which tracks worldwide complaints of Internet fraud through its Web site, also said the total number of complaints in 2009 jumped 22% compared to 2008.

In the article, “Internet fraud’s U.S. price tag put at $550 million,” Donald Brackman, director of the National White Collar Crime Center (NW3C), said the growing figures can be largely attributed to increasingly sophisticated online schemes and cyber criminals’ ability to hide their true identities online. (more…)

Security experts from around the globe will soon meet in Nigeria to help boost the West African country’s parliament to fight Internet fraud and terrorism worldwide. In the article, “Foreign cybercrime experts to partner with lawmakers,” anti-cyber crime and terrorism experts from the US and other European countries will partner with members of the National Assembly to explore the extent of the fraud problem in Nigeria and discuss strategies to combat it.

Over the years, online schemes operating out of Nigeria have cost victims millions in fraud losses. The proposed conference of worldwide anti-fraud, economic and strategic Nigerian government agencies and groups will evaluate the country’s electronic payment system and ensure that measures are taken to protect public funds for a new payment system and other online transactions. (more…)

U.S. President Barak Obama has officially declared October as National Cyber Security Awareness Month and has addressed the Nation detailing the importance of our national infrastructure.

President Obama makes some important points indicating that our networks and IT infrastructure are important national assets and it is imperative to protect them. Acknowledging the growing strength of online spending, President Obama says, “The Internet and e-commerce are keys to our economic competitiveness.”

Cyber thieves are costing the U.S. and other countries billions of dollars in fraud losses every year; this is in addition to the significant impact that individuals suffer as a result of identity theft and the propagation of malware on personal computers. Obama calls on a public/private partnership to address this threat and secure our networks.

Regardless of your political leanings, providing a safe environment for online business is an important goal for our country and the rest of the world. There is no doubt that our online activities are under siege and jeopardized by an increasing cyber threat. Thwarting this threat and providing a safe environment for online businesses and individuals is a key mission for iovation and our customers.