Sections
Cybersecurity
-
![If it seems like cases of fraud and hacking are always in the news, that’s because new incidents pop up practically every day. One of the latest involves hackers successfully accomplishing account takeovers (ATOs) of users of Zelle, the digital payment service. According to the new Digital Fraud Tracker, total losses due to fraud equaled $4.2 trillion in 2018, and fraudulent mobile app transactions increased 680 percent between 2015 and 2018. Fraud doesn’t impact all industries equally. According to the Digital Fraud Tracker, one-quarter of malware specifically targets FIs, and over 5 percent of online retail revenue is now lost to fraud. By 2020, it’s estimated that U.S. credit card losses will exceed $12 billion. More businesses are adopting artificial intelligence (AI) and other technology to fight fraud. According to the AI Innovation Playbook, 63.6 percent of FIs believe AI is an effective tool for stopping fraud before it happens, and 80 percent of fraud specialists using AI believe the technology could reduce payments fraud. Financial Institutions The rise of online banking has provided a host of opportunities for fraudsters. Old manual detection techniques like analyzing geolocations, IP addresses and discrepancies between billing and shipping addresses aren’t able to catch high-level attacks, and often result in false positives. BNY Mellon implemented an AI-based fraud detection initiative in 2018 to use pattern recognition and deep learning to analyze millions of transactions and identify those that are likely fraudulent. AI isn’t just used for fraud detection in the financial industry – it can also help with regulation compliance and adherence to anti-money laundering (AML) standards. Joseph Sieczkowski, head of technology architecture and data at BNY Mellon, explained how it isn’t enough to use AI reactively. Financial institutions also need to stay one step ahead of fraudsters, because they change techniques quickly and often. “[We] do testing constantly to retrain our models to be able to pick up on different types of fraudulent activities,” he said. Retail Balancing security with improving the customer experience is a challenge for all industries, though reducing friction is even more vital for luxury merchants. “Luxury retailers typically operate in a ‘high-touch’ environment, designed to be as friction-free for the customer as possible,” said Shamoun Siddiqui, chief information security officer of Neiman Marcus, in an interview with PYMNTS. “Any measure of security introduces friction. So, the challenge is to make security as transparent as possible while still protecting the customer’s personal information.” The luxury retailer has been using device fingerprinting to identify devices based on unique configurations – and, ultimately, to determine whether it’s being used by a human or is automated. “We are investing heavily in fraud detection systems that [use] machine learning and artificial intelligence to differentiate between normal patterns of customer behavior and potentially fraudulent ones,” Siddiqui said of the retailer’s approach to identity theft and other types of fraud. “These are patterns that would not be visible to the naked eye.” Fraudsters are getting more sophisticated, making use of bots to mimic typical online shopping behavior. After Neiman Marcus identified a bot attack, the hackers started including mouse movements to fool detection systems. Gaming Due to in-game purchasing becoming more standard – a recent study found that approximately half of all personal computer (PC) and console gamers spend money in-game, a share that climbs to more than 75 percent for mobile gamers – gaming platforms have become an attractive target for fraud, especially for hackers who acquire personal data via account takeovers. Gaming and gambling sites face similar issues, as too many security measures can turn off users who will go elsewhere. Some sites are reluctant to implement overly stringent security measures. Beyond using machine learning to detect fraud before it happens, gaming platforms are also using liveness detection, which requires players to be physically present during the verification process so they can submit photos, video playback or audio recordings to confirm their identities. Fingerprints, voice prints and other forms of biometric authentication are gaining steam in the arsenal of fraud-fighting tools. More than 63 percent of all smartphones manufactured in 2017 incorporated some type of biometric authentication, and a growing share of devices are expected to offer these solutions as fraud increases.](https://securecdn.pymnts.com/wp-content/uploads/2019/06/digital-fraud-ai-tools-450x270.jpg)
![If it seems like cases of fraud and hacking are always in the news, that’s because new incidents pop up practically every day. One of the latest involves hackers successfully accomplishing account takeovers (ATOs) of users of Zelle, the digital payment service. According to the new Digital Fraud Tracker, total losses due to fraud equaled $4.2 trillion in 2018, and fraudulent mobile app transactions increased 680 percent between 2015 and 2018. Fraud doesn’t impact all industries equally. According to the Digital Fraud Tracker, one-quarter of malware specifically targets FIs, and over 5 percent of online retail revenue is now lost to fraud. By 2020, it’s estimated that U.S. credit card losses will exceed $12 billion. More businesses are adopting artificial intelligence (AI) and other technology to fight fraud. According to the AI Innovation Playbook, 63.6 percent of FIs believe AI is an effective tool for stopping fraud before it happens, and 80 percent of fraud specialists using AI believe the technology could reduce payments fraud. Financial Institutions The rise of online banking has provided a host of opportunities for fraudsters. Old manual detection techniques like analyzing geolocations, IP addresses and discrepancies between billing and shipping addresses aren’t able to catch high-level attacks, and often result in false positives. BNY Mellon implemented an AI-based fraud detection initiative in 2018 to use pattern recognition and deep learning to analyze millions of transactions and identify those that are likely fraudulent. AI isn’t just used for fraud detection in the financial industry – it can also help with regulation compliance and adherence to anti-money laundering (AML) standards. Joseph Sieczkowski, head of technology architecture and data at BNY Mellon, explained how it isn’t enough to use AI reactively. Financial institutions also need to stay one step ahead of fraudsters, because they change techniques quickly and often. “[We] do testing constantly to retrain our models to be able to pick up on different types of fraudulent activities,” he said. Retail Balancing security with improving the customer experience is a challenge for all industries, though reducing friction is even more vital for luxury merchants. “Luxury retailers typically operate in a ‘high-touch’ environment, designed to be as friction-free for the customer as possible,” said Shamoun Siddiqui, chief information security officer of Neiman Marcus, in an interview with PYMNTS. “Any measure of security introduces friction. So, the challenge is to make security as transparent as possible while still protecting the customer’s personal information.” The luxury retailer has been using device fingerprinting to identify devices based on unique configurations – and, ultimately, to determine whether it’s being used by a human or is automated. “We are investing heavily in fraud detection systems that [use] machine learning and artificial intelligence to differentiate between normal patterns of customer behavior and potentially fraudulent ones,” Siddiqui said of the retailer’s approach to identity theft and other types of fraud. “These are patterns that would not be visible to the naked eye.” Fraudsters are getting more sophisticated, making use of bots to mimic typical online shopping behavior. After Neiman Marcus identified a bot attack, the hackers started including mouse movements to fool detection systems. Gaming Due to in-game purchasing becoming more standard – a recent study found that approximately half of all personal computer (PC) and console gamers spend money in-game, a share that climbs to more than 75 percent for mobile gamers – gaming platforms have become an attractive target for fraud, especially for hackers who acquire personal data via account takeovers. Gaming and gambling sites face similar issues, as too many security measures can turn off users who will go elsewhere. Some sites are reluctant to implement overly stringent security measures. Beyond using machine learning to detect fraud before it happens, gaming platforms are also using liveness detection, which requires players to be physically present during the verification process so they can submit photos, video playback or audio recordings to confirm their identities. Fingerprints, voice prints and other forms of biometric authentication are gaining steam in the arsenal of fraud-fighting tools. More than 63 percent of all smartphones manufactured in 2017 incorporated some type of biometric authentication, and a growing share of devices are expected to offer these solutions as fraud increases.](https://securecdn.pymnts.com/wp-content/uploads/2019/06/digital-fraud-ai-tools-80x80.jpg)
981Security & FraudFraudsters Find New Bank Stomping Grounds
The good news in the world of fighting fraud and cybercrime is that, by the numbers, the battle against the thieves has...
-
819Today In DataHow Digital Tools Change The Security Landscape
Technologies such as artificial intelligence (AI) and biometrics are changing the digital security landscape, and a recent study found that social media networks have...
-
904InnovationCybersecurity Turns To Crowdsourcing Amid Hiring Woes
Cybersecurity is one of the main tasks in the world of digital commerce and payments, and it’s a task that is getting...
-
765B2B PaymentsB2B Pursues An Amazon-Like Experience
In the world of tech and commerce, everybody wants to be like Amazon. That’s particularly true in the B2B eCommerce space, as...
-
1.2KCommerceMary Meeker Offers Digital Views For 2019 And Beyond
Digital payments continue to be fueled by the growth of such areas as ridesharing and wearable technology, as well as the images...
-
2.5KSecurity & Fraud‘Human-Proofing’ Marketplace Fraud
Trust is the currency that makes online marketplaces of all shapes and sizes run — but in a world where cybercrime and...
-
3.2KSecurity & FraudFacial Recognition Critics Roil Over Border Control’s Database Hack
United States Customs and Border Protection (CBP) has revealed that photos of travelers coming into and out of the country were stolen...
-
1.2KBitcoinBitcoin Daily: Komodo Blockchain Platform Hacked Itself To Protect Users’ Crypto; ING Gets On Board With USC Blockchain Project
Blockchain startup Komodo Platform resorted to hacking its users’ wallets in order to save $13 million in bitcoin and other cryptocurrency from...
-
1.7KSecurity & FraudiPhone Scam Reveals How Digital Criminals Find Vulnerabilities
Think of the Apple iPhone, and thoughts are likely to turn to matters involving social media, selfies, family photos, mobile commerce and...
-
1.7KInvestmentsGuardKnox Secures $21M To Boost Cybersecurity For Connected Cars
Automotive cybersecurity company GuardKnox announced it has secured $21 million in a Series A round of funding, bringing its total raised to...
-
2.1KSecurity & FraudData Leak Discovered In Marriott’s Management Company
A cybersecurity research team at vpnMentor has discovered that The Pyramid Hotel Group, which manages Marriott and other hotel brands, underwent a...
-
2.2KB2B PaymentsCybersecurity, Recruiting Tech Lead B2B VC
U.S.-based B2B FinTechs led the way in this week’s investment roundup, with more than $212 million in new funding falling in the...
-
1.6KLegalFirst American Financial Customers Sue Over Data Breach
First American Financial Corp., the title insurance company that exposed the data on hundreds of millions of mortgages dating as far back...
-
2.8KB2B PaymentsThe Cybersecurity Drawbacks Of Supply Chains’ IoT Adoption
Organizations are getting creative in the ways they implement the Internet of Things (IoT) into their back-office operations. In this month’s Intelligence...
-
1.5KInvestmentsBain Capital Raising $1B Fund For Software, Cybersecurity
Sources have revealed that long-standing private equity firm Bain Capital is trying to raise $1 billion to launch a new technology fund...
-
2.1KSecurity & FraudVirus-Infected Laptop Sold As Artwork For $1.3M
Who says a virus-riddled laptop is useless? In fact, one person just paid $1.345 million to obtain an infected device — as...
-
2.7KSecurity & FraudKaspersky Lab Sees Spike In Mobile Banking Cyberattacks
Kaspersky Lab, a cybersecurity and anti-virus company, has reported a rise in a specific malware intended to steal money and credentials from...
-
2.5KB2B PaymentsThe SMB C-Suite’s Data Security Problem
In an environment of relentless cyber threats, small businesses (SMBs) still too often feel they are not targets for cyberattacks and data...
-
2.8KMarketsMoody’s Lowers Equifax Rating After Cyberattack
Moody’s has lowered its rating outlook on Equifax due to cybersecurity issues. Moody’s lowered the credit monitoring company’s outlook from stable to...
-
2.0KB2B PaymentsFBI, Banks Go Global With Cybercrime-Fighting Tactics
The U.S. Federal Bureau of Investigation (FBI) last week announced charges against 11 alleged members of a cybercriminal ring targeting small businesses....
-
1.9KB2B PaymentsAccountants Sound Off On Wolters Kluwer Cyberattack
A cyberattack at accounting firm Wolters Kluwer that left its accountant clients unable to access a portal necessary to do their jobs...
-
2.0KSecurity & FraudSix Countries Join Forces To Stop Cybercrime Network
Six countries, including the U.S., shut down a cybercrime network that stole around $100 million from victims. According to a report in...
-
3.4KRetailOnline Retailers Face New Threats From Hackers
Death, taxes and data breaches – those are perhaps the only sure things in life, and new evidence is emerging that hackers...
-
2.0KToday In DataFixing Some Of The Big Problems In Payments And Commerce
Cyber fraud can be a corporate killer if complacency sets in – but there’s an answer for that. There are also fixes...
-
4.6KSecurity & FraudJapan’s Uniqlo Hacked, 460K Accounts Compromised
Japan’s Fast Retailing, the company that owns the Uniqlo retail chain, said that data from upwards of 460,000 customer accounts was compromised...
-
4.2KSecurity & FraudOffloading Cyber Defense Amid Tech’s Great Unknowns
Cyber insurance firm Coalition just raised $40 million in funding to boost staff, and a data platform that analyzes and underwrites cyber...
-
3.7KSecurity & FraudBoost Mobile Notifies Customers Of Hacking Attack
Boost Mobile, a network owned by Sprint, has notified customers of a hacker attack that accessed an unknown number of accounts, according...
-
2.1KB2B PaymentsG7 Prepares For Cross-Border Malware Simulation
Wolters Kluwer, which fell victim to a malware attack last week, sent a “quiet panic” through the accounting industry, with clients unable...
-
3.3KBiometricsIris-Reading USB Device Marketed As Unhackable Is Hacked
The eyeDisk, a USB flash drive that claims to be unhackable, has been hacked by a U.K.-based cybersecurity firm called Pen Test...
-
2.1KSafety and SecurityPopular GPS Device Has Security Flaws
A GPS tracker that’s used to monitor children, protect the elderly and keep track of vehicles can be compromised to show location,...
-
4.0KB2B PaymentsWolters Kluwer Cyberattack Spreads ‘Quiet Panic’ Through Industry
A malware attack at accounting software company Wolters Kluwer wreaked havoc on the firm this week, as reports stated the cyber event...
-
2.8KToday In DataThe Innovation Race With Fraudsters Worldwide
For every innovation in payments and commerce worldwide – faster payments, marketplace-based commerce, self-service retail – there always seems to be a...
-
1.7KB2B PaymentsHow Contractor Risk Analysis Shifts To Look Ahead
On a global scale, supply chain risk for large conglomerates can often be about regulatory compliance, contract negotiations and even addressing threats...
-
3.6KSecurity & FraudGas Station Software Vulnerable To Hacking
Homeland Security’s cybersecurity agency has issued an advisory about a popular gas station software that has flaws, making it highly vulnerable to...
-
2.6KSecurity & FraudWorld Password Day Highlights (The Annoying) Endurance Of A Weak Security Tool
As far as marketing and education pushes disguised as pseudo-holiday type things, you could do worse than World Password Day, which is...
-
2.4KB2B PaymentsWhen Vendors Open Doors To Cyberattackers
Organizations are ramping up cybersecurity investments in response to the ever-climbing threat of data breaches and cyberattacks. Last year saw record levels...
-
2.7KSecurity & FraudMicrosoft CISO Says Passwords Are Useless
Microsoft‘s chief information security officer (CISO), Brett Arsenault, believes that when it comes to protecting companies and individuals from cyberattacks, passwords are typically...
-
3.4KMastercardMastercard Launches New SMB Card Rewards
The main challenge of designing a holistic solution for the small business (SMB) community is that it’s a diverse segment, making it...
-
2.5KSecurity & FraudHackers Had Six-Month Access To Citrix Networks
Citrix has confirmed that hackers had access to its networks for six months before the breach was discovered, according to reports. In...
-
1.4KToday In DataFood For Thought With Mobile Order-Ahead
Mastication’s gone mobile, with bits and bytes taking their place alongside actual bites. As shown in the latest Mobile Order-Ahead Tracker, a...
-
2.0KB2B PaymentsHow To Motivate FinServ To Take Action On Cybersecurity
To those who understand the importance of cybersecurity, and the monumental risks that growing cyberthreats impose on organizations, safeguarding systems and data...
-
4.0KSecurity & FraudP2P Security Issues Plague Millions Of IoT Devices
A P2P (peer-to-peer) technology ingrained in millions of IoT (Internet of Things) devices, including security cameras, smart doorbells, baby monitors and video...
-
5.6KB2B PaymentsThanks To Ransomware, Bitcoin Leaves A Bad Taste In Corporates’ Mouths
The last several years have seen a surge in efforts among the cryptocurrency community to legitimize the technology. Once seen as a...
-
3.9KB2B PaymentsMYOB Calls For Two-Factor Authentication Mandate
Australian small business cloud accounting company MYOB is calling for legal action to address the security risks facing small businesses, reports in...
-
9.3KB2B PaymentsThe Cybersecurity Threat Of GDPR
The General Data Protection Regulation (GDPR) represented a new phase in data security and EU regulators’ approach to it. Designed to safeguard...
-
5.0KSecurity & FraudStudy: Hotels Often Leak Guest PII
A study by Symantec, a cybersecurity company, showed that two out of every three hotel sites have leaked personal data, which could...
-
4.4KB2B PaymentsCorporate Payments Fraud Jumps Despite Stronger Internal Controls
While corporates are adopting stronger internal controls to combat the threat of payments fraud, new data from the Association for Financial Professionals...
-
6.2KMastercardWanted: Cybersecurity Aces — Mastercard, Partners Have A Plan
Here’s a bit of heresy for 2019: Data’s not everything. Sure, data often gets called the oil of the digital age — and...
-
3.9KSecurity & FraudGlobal IT Spending To Hit $4T In 2019
Worldwide spending on information technology is expected to reach about $4 trillion in 2019, according to a report by CNBC. Those numbers...
-
3.3KInvestmentsSoftware Co RiskLens Raises $20M To Mitigate Cyber Risk For Businesses
RiskLens, a cyber risk management software company, has raised $20.55 million in a series B funding round, according to reports. The...