Rippleshot Blog

Card Fraud Trends: 6 Resources for Banks and Credit Unions

Posted by Anna Kragie on Apr 12, 2019 1:29:48 PM

Keeping up with card fraud means anticipating what's going to be the next big problem. Understanding patterns and trends are a core component of this puzzle. Of course, that's why a fraud analytics platform like Rippleshot exists. But the Rippleshot team is also here to be your resource for keeping up with the latest trends in card fraud and understanding how they're evolving.

To keep you updated with what you should know, we've gathered a list of six resources worth bookmarking when you're looking to learn the answers to what's motivating fraudsters this season and what's likely going to be the next big trend that banks and credit unions must monitor. Check back weekly for new reports on trends that are impacting the payment fraud ecosystem. 

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How Credit Unions Can Mitigate Risk With Big Data, Analytics and Machine Learning

Posted by Anna Kragie on Apr 5, 2019 11:47:54 AM

In an era of rising card fraud and data breaches, credit union leaders are constantly analyzing how they are protecting themselves, and their members. One of the biggest problems today? Waiting for network alerts can be costly in terms of fraud loss and customer experience.

That was one perspective Rippleshot’s Customer Success Manager Jesse Sherwood shared in a webinar she recently participated in hosted by CUNA Mutual Group titled “Managing Risk Through Big Data, Analytics & Machine Learning.” Managing that risk, Sherwood said, starts with determining how data can be used to identify and act on fraud sooner.

“When we are thinking about data, we have to start with the problem. What problem are we trying to solve?,” Sherwood said during the webinar. “Data breaches are becoming more and more common and at very large scale. What this means is credit unions and members are being impacted. How do we protect them?”

The answers to those questions start by determining what tools can help credit unions boost fraud prevention performance.

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Topics: Fraud, Machine Learning, Data Analytics

Fed Report Shares Data On Issuer Debit Card Fraud Losses

Posted by Anna Kragie on Mar 22, 2019 12:25:01 PM

The latest report from the Federal Reserve Board of Governors provides insight into how card fraud trends are impacting issuers, specifically related to debit and prepaid card fraud losses.

The latest report, issued March 21, compiled the latest available data on interchange fee revenue and issuer fraud losses as it relates to debit transactions to provide FIs with an overall outlook into how fraud patterns are shifting and how EMV chip card adoption is impacting counterfeit card fraud.

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Javelin: Fraudsters Targeting Mobile Account Takeover, New Account Fraud

Posted by Anna Kragie on Mar 15, 2019 7:00:00 AM

In the last quarter of 2018, Rippleshot’s State of Card Fraud highlighted account takeover fraud as a rising trend for financial institutions to watch. We predicted it would define one of the major hurdles for FIs. The latest report from Javelin Strategy & Research provides deeper insight into how that problem is evolving.

The 2019 Identity Fraud Study, released this month by Javelin, indicates existing card fraud losses from $6.4 billion from the $8.1 billion seen in 2017. That doesn’t mean the fraudsters are staying quiet. In 2017 alone, account takeover jumped 300 percent. What's contributing to this rise is the ability for cyber criminals to gain access to bank accounts easier than a credit card.

As fraudsters target new account openings and mobile account takeover tactics, these are fraud trends worth paying attention to over the next few years. Account takeover accounted for $4 billion in losses, which was slightly down from the year prior ($5.1 billion), but was up significantly when compared to data in recent years. Overall, fraud incidents and fraud losses hit $14.7 billion in 2018. There's a number of factors contributing to these trends. 

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Data Breach Regulation: What’s Next For Banks and Credit Unions?

Posted by Anna Kragie on Mar 8, 2019 2:24:22 PM

When your organization is part of a data breach as big as Equifax and Marriott, expect to stay in the headlines. Those two corporations continue to be under a congressional review microscope following the incidents that left millions of consumers’ data exposed.

The Senate Permanent Subcommittee on Investigations has been probing these breaches and its members have been vocal about the lack of oversight in protecting people’s personal and financial credentials. Members across party lines called on the organizations to do better to proactively protect their customers’ data. These discussions have also spurred conversations across the financial services industry.

"When hackers are able to obtain someone's personal information, the consequences are real," said Democrat Sen. Tom Carper. "The constant stream of data-breach notifications we see year in, and year out, is a sign we could be doing better."

“I think it’s long past time for us to come to an agreement on a federal data security law that lays out for private industry what we expect from them, both in data protection and in data breach notification,” Carper noted.

This begs the question: "What's next for financial institution data breach regulation?"

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Why Data Analytics is Transforming How Financial Institutions Approach Card Fraud

Posted by Anna Kragie on Mar 1, 2019 12:00:00 PM

It’s no secret that AI, machine learning and big data are going to transform how financial institutions protect their customers from the influx of card fraud that continues to rise each year. It’s why the Rippleshot team decided to bring a new solution to the market six years ago.

Financial institutions are getting faster and better at preventing, detecting and stopping fraud, thanks to help from more sophisticated software. But fraudsters are getting faster. As everyone knows, card fraud is skyrocketing and reissuance costs are at an all time high as the price to produce EMV chip cards rises. Banks and credit unions are absorbing these costs, while still having to learn how to keep up at the rate fraudsters are evolving their techniques.

Our sales pitch will tell you all you need to know about why we believe in our mission of collaboratively fighting fraud with data. Through the power of machine learning and big data, we help banks and credit unions reduce fraud, decrease re-issuance costs, and minimize customer/member impact. The quick answer of how we do this is that we’re able to analyze millions of card transactions daily, proactively helping FIs detect where gaps exist and how then can address the biggest risks first in order to achieve those three core goals of any organizations highlighted above.

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Gas Station Skimmer Fraud Triggers Secret Service Memo

Posted by Anna Kragie on Feb 22, 2019 3:39:04 PM

As payment technology evolves, so does the techniques of hackers. Gas stations skimming fraud has been one of the hot topics that continually falls onto the list of latest and greatest ways that fraudsters compromised payment card data at the pump. This is going to continue being a major topic of discussions across the financial services ecosystem long after the EMV deadline sets in for gas stations in October 2020.

This week, reports surfaced about gas station skimmer fraud. This issue made headlines after Krebs on Security reported about a memo sent out by the U.S. Secret Service. Krebs initially reported that the skimmers discovered were part of new bluetooth and SMS technology that were being used to steal payment data from consumer's devices. Krebs updated his report to include some clarifications after getting more information from sources close to the matter. He concluded that skimming fraud did occur, but not through SMS-enabled devices. 

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Topics: Fraud

New Report: '2019 Data Breach Industry Forecast’

Posted by Anna Kragie on Feb 15, 2019 11:17:47 AM

As we detailed in our recap of 2018’s data breaches last week, patterns are shifting as fraudsters look for new ways to monetize data through more targeted, wide-reaching attacks that gathers more personal information in each sweep. Less breaches, but bigger impact — that was the story of 2018.

What the Identity Theft Resource Center’s report detailed about 2018 was that the number of personal records exposed more than doubled in 2018. Exposed PII records rose 126%. To be more specific, this was a sharp increase from 197,612,748 records exposed to 446,515,334 records exposed.

This aligns with what we shared in our State of Card Fraud: 2018 report we detailed why fraud is going to continue to get worse before it gets better. With new threats emerging at a pace faster than most organizations can keep up with, data breaches have become the status quo. Managing the fallout from these breaches has become as important as detecting when they occur. That's the story that's emerging in 2019. 

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2018 Data Breach Recap: Exposed PII Records Up 126 Percent

Posted by Anna Kragie on Feb 7, 2019 7:30:00 AM

As 2019 enters its second month, financial institutions are ready to move on from 2018, and are rapidly focusing on how to prepare and protect their customers from the next big wave of credit card fraud. As the trends show, it's going to get better before it gets worse. This has been the storyline that continues to play out year after year. 

But to fully prepare for the year ahead, it's worth taking a quick recap of how 2018's figures stacked up, including data on what fraudsters are targeting most. After all, last year's figures give valuable hints into what 2019's biggest data breach headaches will likely be. The latest data from the Identity Theft Resource Center (ITRC) breaks down which sectors were hit the hardest, along with details about the biggest threats to emerge in 2018.

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The Government Shutdown's Impact On Fraud Schemes

Posted by Anna Kragie on Jan 25, 2019 1:01:49 PM

Fraudsters love to pray on vulnerable populations. As the U.S. federal government enters month two of a shutdown, the closed down FTC isn't able to provide assistance, or issue fraud warnings to consumer and financial institutions.

During a time when consumers are increasingly desperate to get paid, or seek out loans, this is when it's common to see an increase in fraudulent financial schemes. Outside of the fact that the FTC's website isn't actively responding to identity theft complaints (at least not until the government reopens), there are a number of other fraud schemes that consumers and financial institutions should be aware of. 

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New Report: 2018 Holiday Card Fraud Benchmark Data

Posted by Anna Kragie on Jan 18, 2019 8:53:57 AM

It should be no surprise that payment fraud increased during the recent holiday season as this is the trend each year. What is noteworthy, based on the latest ACI Worldwide benchmark data report on this subject, is what's contributing to that increase.

The report indicates that cross-channel payment fraud increased 13 percent globally during the 2018 peak holiday season, with an increase in "buy online, pick up in-store" being a major target for fraudsters as card-present fraud becomes increasingly difficult. Card-not-present (CNP) fraud has also grown as a result.

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Topics: Fraud

Juniper Research: CNP Fraud Losses To Hit $130 Billion Over Five-Year Period

Posted by Anna Kragie on Jan 11, 2019 11:51:59 AM

The latest report from Juniper Research indicates that eCommerce retailers are in store for a storm of card-not-present (CNP) fraud over the next 5 years. 

The research indicates that retailers should expect to see CNP fraud losses around $130 billion between 2018 and 2023. More sophisticated fraudster techniques, coupled with a delayed rate at which merchants invest in the latest FDP solutions as eCommerce transactions increase, is what's contributing to the record-setting fraud loss estimates. 

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Marriott Breach Update: Encrypted Credit Cards Impacted

Posted by Anna Kragie on Jan 4, 2019 1:19:05 PM

The latest report to come out of the Marriott data breach was a mixed bag of good news, bad news. The good news?The breach doesn't appear to have impacted as many people as originally thought. The bad news? An estimated 5.25 million unencrypted passport numbers, along with an estimated 8.6 million encrypted credit cards were stolen.

From what's been publicly reported, of those estimated 8.6 million credit cards, all but 354,000 were expired. It's believed that  2,000 unencrypted card numbers may have been stolen as part of the data breach.

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How To Manage Holiday Card Fraud

Posted by Anna Kragie on Dec 20, 2018 12:00:00 PM

Banks have plenty on their holiday checklist. More than enough to check it once...or even twice. Being prepared to combat holiday card fraud means proactively preparing long before the storm hits. 

The holiday season is also a busy time for fraudsters who prey on customers and financial institutions who are reluctant to decline a transaction or re-issue cards.  As a refresher for 2018, we’ve brought back our team’s tips on what issuers can do to manage incidents during this peak fraud.

Download our Holiday Card Fraud Tips

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Data Breach News Updates: Equifax’s Congressional Report; Marriott’s China Ties

Posted by Anna Kragie on Dec 12, 2018 12:38:39 PM

This week’s data breach news covers two massive data breaches that have garnered attention on a national and international scale: Equifax and Marriott.

The Equifax breach, believed to have impacted 148 million U.S. consumers, has made headlines since it was discovered in September of 2017. The latest report related to the incident comes from a 14-month congressional investigation that suggests that Equifax could have prevented the breach had they followed proper security measures.

“Equifax failed to fully appreciate and mitigate its cybersecurity risks,” the staff majority report said. “As a result, Equifax allowed one of the largest data breaches in U.S. history. Such a breach was entirely preventable.”

Equifax’s network allowed hackers to gain access to company data for 76 days, according to the House report. Lawmakers are still calling on Equifax to pay to make up for what’s been called a lack of preventative measures to stop the breach from occurring, including a breakdown in recommended security protocols.

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Topics: Data Breach Legislation