BizReport: Top 5 schemes fraudsters are using against brands
Fraud is an ever evolving issue for brands across the digital and offline worlds. SaaS platform Kount has identified five schemes fraudsters are using against businesses right now.
First, social media banking.
This type of fraud victimizes consumers by using a brand hijacking or by hacking a legitimate website/store. The fraudsters them impersonate the business to obtain the consumer's information.
Second, zero-click fraud.
"Zero-click fraud is a new type of online fraud that requires no user interaction and has evolved from older click hijacking fraud (an example of this would be when a site visitor clicks, for example, on a video play button, but instead of the video, they have downloaded ransomware onto their phone or computer). The new instance of "zero-click" fraud was discovered by Symantec security researchers who found that somewhere in Japan, an adult site operator decided that waiting one second after the user lands on a fraudulent page is more than enough to trigger the action they want from the user (in this case, the users were falsely led to believe that by accessing the page, they were subscribed to a premium service, for which they had to pay a fee of $2,000)," writes the company.
Third, triangulation schemes.
These criminals use phishing, returns and credit card fraud to make their bank. First, they set up phone online auctions, and then use a stolen credit card to purchase the auctioned item from an order filler like Amazon, or they recruit existing auction site members to sell their stolen goods through auction sites.
Fourth, chip and skim.
"Chip and skim involves cloning or otherwise subverting the chip in new EMV cards. There is already a vulnerability within chip cards that allows a criminal to generate the supposedly secure unique transaction code generated by the chip, with experts saying it's likely only a matter of time before they can clone the chip as well," writes Kount.
Fifth, reshipper fraud.
Similar to triangulation, these fraudsters use stolen credit cards to buy goods, ship them to 'mules' who then re-ship to the original fraudster. The stolen goods are then sold, usually in foreign countries.
Written by Kristina Knight for BizReport.