Payment Solutions News | Quick Tips

FRAUD TYPES AT-A-GLANCE


Fraudsters are getting more sophisticated and continue to develop multiple methods for scamming businesses. But being aware of what is out there—and keeping your employees informed of the different  scams—can go a long way in helping to ensure your business is not affected by fraud.

 

Business Email Compromise
(BEC)

Account Takeover (ATO)

Ransomware

Business Process Compromise (BPC)

Distributed Denial of Service (DDoS)

New Account
Fraud

Description

Use of electronic techniques to compromise legitimate business email accounts

Theft of online banking credentials to initiate fraudulent payments

Use of malware to deny availability to data and systems, followed by demand of a ransom payment to release data

Infiltrating and manipulating aspects of internal business processes[1]

Use of illegitimate Internet traffic to prevent legitimate access to a website

Opening of new accounts in consumers’ names without their knowledge

Types or
Examples

Display name deception

Domain spoofing

Look-alike domains

Dyre

IcedID

GozNym

CryptoLocker

Petya

WannaCry

Diversion

Piggybacking

Financial manipulation

Combo SYN Flood

DNS Amplification

NTP Amplification

Utility fraud

Loan fraud

Credit card fraud

Fraud Impacts

BEC-EAC U.S. losses of $676 million in 2017[2]

40,000 BEC attempts in 2016[3]

77% of organizations experienced BEC scams in 2017[4]

$5.1 billion in losses in 2017 (+120% from 2016)[5]

44% of businesses were victims of an ATO-based attack [6]

Average amount paid in ransom is $1,400 [7]

$5 billion in global losses in 2017, expected to rise to $11.5 billion in 2019 [8]

BPC was responsible for an $81 million Bangladesh Bank heist in 2016[9]

92% rise in DDoS attacks between 1Q17 and 3Q17[10]

Individual DDoS attacks can cost $50,000[11]

$3.6 billion in losses in 2016 (+24% from 2015) [12]

30% of victims had a credit card opened in their name [13]

 

 

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Important Legal Disclosures & Information

[1] Trend Micro

[2] 2017 Internet Crime Report, Internet Crime Complaint Center (IC3), fbi.gov

[3] FBI, reported in “Small and Mid-Sized Companies Are the New Targets of Business Email Compromise,” Mondaq Business Briefing, March 6, 2018

[4] 2018 AFP Payments Fraud and Control Survey

[5] “Identity Fraud Hits All Time High With 16.7 Million U.S. Victims in 2017, According to New Javelin Strategy & Research Study,” Business Wire, February 6, 2018

[6]“Account Takeover Based Attacks More Than Double with 44% of Businesses Falling Victim,” Business Wire, April 12, 2018

[7] “As Ransomware Attacks Grow in Sophistication, Both Employees and Employers are Paying Ransoms in Record Number,” PR Newswire, October 31, 2017

[8] “Global ransomware damage costs predicted to exceed $11.5 billion annually by 2019,” PR Newswire, November 15, 2017

[9] “The 2017 Cyberrisk Landscape,” Risk Management, January 1, 2017

[10] “Number of DDoS Attacks Have Doubled in Six Months as Criminals Leverage Unsecured IoT Devices,” Business Wire, November 20, 2017

[11] “Individual DDoS Attacks Can Cost Enterprises US$ 50,000 (£35,000), Corero Research Finds,” Business Wire, April 17, 2018

[12] “Credit-Card Fraud Keeps Rising, Despite New Security Chips—Study,” The Wall Street Journal, February 1, 2017

[13] “Credit-Card Fraud Keeps Rising, Despite New Security Chips—Study,” The Wall Street Journal, February 1, 2017

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