Menu
One in three victims of Target card breach could face fraud

One in three victims of Target card breach could face fraud

A survey released by Javelin Research shows data breach victims are more frequently seeing fraud

Javelin Research said the cost of fraud caused by criminals abusing payment cards and other accounts, such as checking, savings and loan accounts, jumped by 36 percent to $16 billion, up from $11 billion in 2012.

Javelin Research said the cost of fraud caused by criminals abusing payment cards and other accounts, such as checking, savings and loan accounts, jumped by 36 percent to $16 billion, up from $11 billion in 2012.

One in three data breach victims in 2013 later experienced fraud, according to a survey released Wednesday, a sharp increase that doesn't bode well for millions of Target shoppers.

That's up from one in four in 2012, according to Javelin Research, which polled 5,634 U.S. adults over three weeks last October about financial fraud incidents.

"The correlation between a fraud victim and a breach victim gets stronger every year," said Al Pascual, senior analyst for security risk and fraud, who co-authored the report.

Target said on Dec. 19 up to 40 million credit and debit cards may have been compromised between Nov. 27 and Dec. 15, the busiest shopping period of the year. It later said malicious software was installed on its point-of-sale devices, which harvested unencrypted payment card details.

Neiman Marcus disclosed in January it was affected by the same kind of hacking, while two other companies, the arts and crafts chain Michaels and the hotel management company White Lodging Services, are also investigating suspected breaches.

Target later said 70 million other personal records were also stolen. Pascual said those details are less likely to result in fraud because cybercriminals are intensely focused these days on payment card details, which are easier to monetize.

Banks and card issuers replace cards used fraudulently. For stolen cards that have not been fraudulently used, they frequently opt not to reissue cards since it is expensive and is inconvenient for their customers.

The glut of stolen card details on underground marketplaces has likely caused a large drop in so-called "new account fraud," where criminals amass a person's personal information in order to open financial accounts. New account fraud fell from US$10 billion in 2012 to just $3 billion 2013, Javelin said.

Although the financial industry has improved checks around creating new accounts, the "less rosy explanation of fraudsters' abandonment of new-account fraud is that it is simply becoming too easy to make a buck by misusing and taking over existing accounts," the report said.

The cost of fraud caused by criminals abusing payment cards and other accounts, such as checking, savings and loan accounts, jumped by 36 percent to $16 billion, up from $11 billion in 2012, Javelin said. About 5 percent of U.S. consumers were affected in 2013.

"For only a few dollars, criminals can purchase card numbers or other account credentials," the report said. "The misuse of existing account credentials is a less onerous process than opening a new account in many cases."

Pascual said people using payment cards are always on the defense.

"When it comes to figuring out whether or not you are going to be a victim of a data breach, it's a crap shoot," he said. "If you monitor your accounts, you are in a better position. There are so many breaches. You can't expect your bank to replace your card every time it happens."

Send news tips and comments to jeremy_kirk@idg.com. Follow me on Twitter: @jeremy_kirk


Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags Javelin Researchsecuritydata breachNeiman MarcusIdentity fraud / theftMichaelsfraudWhite Lodging ServicesTarget

Featured

Slideshows

Kiwi channel comes together for another round of After Hours

Kiwi channel comes together for another round of After Hours

The channel came together for another round of After Hours, with a bumper crowd of distributors, vendors and partners descending on The Jefferson in Auckland. Photos by Maria Stefina.​

Kiwi channel comes together for another round of After Hours
Consegna comes to town with AWS cloud offerings launch in Auckland

Consegna comes to town with AWS cloud offerings launch in Auckland

Emerging start-up Consegna has officially launched its cloud offerings in the New Zealand market, through a kick-off event held at Seafarers Building in Auckland.​ Founded in June 2016, the Auckland-based business is backed by AWS and supported by a global team of cloud specialists, leveraging global managed services partnerships with Rackspace locally.

Consegna comes to town with AWS cloud offerings launch in Auckland
Veritas honours top performing trans-Tasman partners

Veritas honours top performing trans-Tasman partners

Veritas honoured its top performing partners across the channel in Australia and New Zealand, recognising innovation and excellence on both sides of the Tasman. Revealed under the Vivid lights in Sydney, Intalock claimed the coveted Partner of the Year 2017 (Pacific) award, with Data#3 acknowledged for 12 months of strong growth across the market. Meanwhile, Datacom took home the New Zealand honours, with Global Storage and Insentra winning service provider and consulting awards respectively. Dicker Data was recognised as the standout distributor of the year, while Hitachi Data Systems claimed the alliance partner award. Photos by Bob Seary.

Veritas honours top performing trans-Tasman partners
Show Comments