Fraud, Privacy, and Stolen E-mails Surveys

 

A report from the Federal Bureau of Investigation (FBI) states that online fraud complaints rose in 2008 by one-third. Meanwhile, research from Trend Micro Inc. finds stolen personal information for accessing email accounts is being sold on the internet for one U.S. cent or less. In other news, a KPMG International study found privacy and security concerns deter customers from using mobile banking.

Focal Points:

• According to the FBI-run Internet Crime Complaint Center (ICCC) reports of online fraud increased by 33 percent last year, fuelling a surge in Internet scams. A total of 275,284 complaints were received by ICCC last year, relating to losses totaling $264.6 million - a record high. This compares with total losses of $239.1 million last year and $18 million in 2001. The average loss from online fraud in 2008 was $931, the report said. Non-delivery of promised merchandise or payment was the most common type of complaint, accounting for 32.9 percent of the total while Internet auction fraud accounted for 25.5 percent of reports. ICCC also reports that 74 percent of online fraud is committed via e-mail. Moreover, 2009 is shaping up to be very busy year for cyber crime, with 40,000 cases referred to U.S. law enforcement agencies in the first quarter alone.
• Trend Micro's Countermeasures blog reports that Yahoo! Inc. email accounts can be purchased on the underground economy for 0.008 U.S. cents each, with Google Inc. Gmail accounts fetching 0.009 U.S. cents. Microsoft Corp. Hotmail accounts are available for one cent, while active Time Warner Inc. AOL accounts can demand prices of three cents each. In addition, fraudsters are offering active European eBay Inc. accounts for USD 6.00 each, while U.S. accounts cost USD 4.00 each. Active, verified accounts for eBay's online payments service PayPal can be purchased for as little as USD 8.00. Details for gold Visa Inc. and MasterCard Inc. credit cards are priced at USD 90 each, while platinum cardholder details can be bought for USD 100.
• A study by KPMG found that concerns over the security and potential cost of mobile banking services are acting as major barriers to the wider adoption of the technology. Almost half of those who have never tried banking through a mobile device cited privacy and security concerns. Moreover, 85 per cent of U.S. bank customers think mobile banking is important, but they do not want to pay for it.

Experton Group believes enterprises and individuals can expect the onslaught of fraud and identity theft incidences to increase and therefore must improve their privacy and security management processes. While cyber risks cannot be eliminated, enterprises can ensure their risks are manageable and employees are vigilant to both external and internal threats. However, enterprises cannot solve this with technology alone. IT executives should educate their Boards, management and staff on the impacts of all forms of cyber attacks, gain buy-in for investments that sufficiently mitigate corporate risks, and implement processes and programs that make risk mitigation a shared ongoing responsibility.