EMV deterrent turns fraudsters to online hacking

Based on recent studies, it’s time to take even more strenuous efforts to lock down online accounts. Using chip-based technology has stopped some duplicitous transactions, but according to a new report from the Merchant Risk Council and fraud-tech company Forter, the holidays were a busy time for online fraudsters. They reported a leap of 79 percent for fraud risk on holiday orders during Q4 2016 compared to Q4 2015, representing an almost nine percent increase in online or CNP (card not present) fraud.

The study also shows more online payment account takeovers versus merchant account takeovers that involve breaking into accounts on the merchant’s website in order to look like returning customers. In contrast, online payment account takeovers aim straight for services such as PayPal or Apple Pay. Forter reported a 131 percent increase in attempts to break into online payment accounts.

The report also noted a 69.9 percent increase in the fraud attack rate for apparel retailers and a 49.8 percent increase attacks on food and beverage retailers. Read the full story at CU Times.