LexisNexis Risk Solutions has released a new report delving into the ever changing global transaction fraud landscape, uncovering global attacks on mobile apps rising 148% in six month.
These attacks are aimed more so at organisations that provide new player bonuses – such as gambling – that enable the fraudster to act as a new customer before selling for profit.
The report, found here, was generated from its ‘Digital Identity Network’ between January 2019 and June 2019, documenting 16.4 billion transactions of which 277 million were human-initiated attacks – an overall a 13% increase across the second half of 2018.
It details an example of one fraudster who was tracked across “three industries and six different organisations” attempting to create new accounts, initiate repeated login attempts and make fraudulent payments in an effort to monetise stolen credentials, launder money and abuse bonus incentives.
“Fraudsters no longer operate in silos, they are attacking across industries and organisations,” noted Rebekah Moody, director of fraud and identity, LexisNexis Risk Solutions.
“As seen by a detailed example in the report, one fraudster can carry out a large number of transactions against a series of global organizations using a single mobile device.
A key takeaway from the report is noticeable shift from individual attacks to a more “networked, cross-organisational and cross-industry” fraud evolution that faces firms today.
With new cyber attack techniques constantly being developed the report also provides an insight to the growth of bot attacks, especially targeting those in the media and e-commerce industry.
These ‘bot attacks’ are particularly aimed at new account creation transactions, with a 65% increase in attempts during the six month period.
Fraudsters are utilising these new account creation attempts to test, validate and build online identities for financial gain.
E-commerce companies also saw bot attacks on new account creations increase 305% and were most prevalent in online marketplaces, virtual gift card companies and ridesharing sites.
“In the end, corporations benefit the most when fraud defense platforms include a multilayered approach that comprise digital identity intelligence, physical identity and authentication capabilities,” continued Moody.
“This approach, when executable in near real-time and touching the entire customer journey, extends beyond detecting complex fraud – it also allows for more streamlined regulatory compliance processes and reduces friction across the customer experience.”