NuData Security Reveals Recent Online Fraud Trends in Wake of Significant Breaches

Growing Size and Scope of Breaches and Exposure of Personally Identifiable Information Verify the Necessity of User Behavior Analytics in Online Fraud Detection Solutions

Aug 25, 2015, 07:47 ET from NuData Security

VANCOUVER, British Columbia, Aug. 25, 2015 /PRNewswire/ -- NuData Security today announced new threat intelligence that provides insight into the latest trends in online fraud.

Trends NuData Security researchers have observed include:

  • Account takeover, in which fraudsters steal an established account with personally identifiable information (PII) attached to it, continues to beat credit card fraud. This continuing trend showcases fraudsters' preference for account details beyond just credit cards.
  • NuData Security evaluated 5.1 billion behaviors in May through July. Of the over 500 million account creations analyzed, more than 57 percent were flagged as high risk or fraudulent, compared to 28 percent in February through April.
    • Account creation fraud has increased by more than 100 percent since February 2015.
  • Nearly half of all account registration fraud attempted in May was tied to creating false accounts to deliver false product ratings.
  • NuData Security observed more than 270 million fraudulent or high-risk behavior events in May through July. These events were assessed through the following behavioral biometrics and data points, including more than:
    • 32.8 billion keystrokes
    • 9.3 billion clicks
    • 388 million unique email addresses
    • 191 million unique IP addresses
  • A significant portion of attacks in the past three months originated from China and the United States, however, incidents were traced back to as many as 151 countries. The top six sources of malicious behavior include:
    • China
    • United States
    • Saudi Arabia
    • United Kingdom
    • Malaysia
    • Brazil

Unlike previous ecommerce industry breaches, recent attacks are growing in size and targeting more valuable PII, which may include information such as social security numbers and bank account information, among other data. A data breach has a ripple effect that reaches far beyond the breached organization. Businesses must protect themselves from fraudsters who know more about their customers than they do. They must not only verify a user's identity through PII, but must also verify that the behavior behind the transaction is that of a valid user. This is where user behavior analytics (UBA) play a vital role. Becoming complacent in an age of massive data breaches is both a financial and reputational hazard.

NuData Security's online fraud detection solution, NuDetect, combines data from an array of customers, which includes top 10 ecommerce companies globally. Additional information on NuDetect is available at: http://nudatasecurity.com/nudetect/

Michel Giasson, CEO, NuData Security, said:
"NuData Security is in a unique position to monitor key trends based on real-time analysis of fraudulent attempts at account creation, login and transaction. For organizations to protect their brand and users, they must figure out how to detect fraudsters utilizing the increasing amount of stolen identity data. The good news is that harnessing the power of behavioral attributes and biometrics helps authenticate the genuine user. Behavioral analysis serves as a means of understanding how legitimate users truly act reducing the impact to victims of the data breach."

To learn more about UBA, please watch: https://www.youtube.com/watch?v=MsbpzHwUa38&feature=youtu.be

To learn more about account takeover, please watch:  https://www.youtube.com/watch?v=-PR0q8M9cUk&feature=youtu.be

About NuData Security
NuData Security predicts and prevents online fraud, protecting businesses from brand damage and financial loss caused by fraudulent or malicious attacks. NuData Security analyzes and scores billions of users per year and services some of the largest ecommerce and Web properties around the globe. Additional information is available at: http://nudatasecurity.com/

PR Contact:
Michael Salmassian
Nadel Phelan, Inc.
+1 831-440-2408
michael@nadelphelan.com  

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SOURCE NuData Security



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