Fragmentation of Fraud

Fragmentation
of Fraud
November 2014
A unique view on International eCommerce fraud
Contents
WHY ANOTHER FRAUD REPORT?
A unique opportunity
3
A unique approach 9
The fraud landscape
10
Global complexity
Gaining understanding
FOREWORD
4
EXECUTIVE SUMMARY
5
Fragmented fraud landscape
DETAILED FINDINGS
Changing fraud patterns
Coping with globalising fraud
Proliferation of markets
A comprehensive approach required
Proliferation of channels
Proliferation of payment types
Merchants are losing the battle
Keeping up
Finding the right solution
A comprehensive tailored approach
So what?
12
International fraud
The fragmentation of fraud Fragmentation by channel
What tools should I use
Barriers to change
CONCLUSION
20
The new battle lines are drawn
Customer choice or security?
The time to act is now
Merchants’ key needs
14
Channel proliferation increases risk
GLOSSARY OF TERMS
Channel hopping
Fragmentation by payment method
18
Deploying the right tools
Key challenges
Fragmentation by market
Fighting future fraud
21
16
The growth of alternative payments
New payment methods – new problems
Fragmenting payment methods
Fragmentation
of Fraud
2
Why another
fraud report?
A unique opportunity
As international commerce evolves at an unprecedented pace, we see
vast opportunities being created for merchants to grow internationally.
However, as commerce proliferates, so do opportunities for fraudsters.
That’s why Worldpay has commissioned the first “fragmentation
of fraud” study, to examine both the emerging fraud risks in this
changing commercial landscape, and the future challenges of
global online payments.
A unique approach
This report is the first study of its kind to simultaneously consider new
markets, new payment types and new channels, globally. Worldpay
commissioned a survey of online fraud management professionals in
international merchant organisations. The opinion of a reformed fraudster
was sought to contextualise the findings and provide further insight.
Readers of this report will gain an understanding of:
•
Where and how fraud is affecting merchants
•
The challenges posed by the fragmentation of fraud
•
Potential approaches to fighting the fragmentation of fraud
The first global report to
simultaneously consider new
markets, new payment types
and new channels
Fragmentation
of Fraud
3
Foreword
Tony Sales, ex-fraudster
“In my opinion the report commissioned by Worldpay is the first to correctly
analyse empirical data to provide true insight and reveal how fraudsters will
attack online merchants’ systems over the coming months and years.
Omni-channel retailing is exploding. But with omni-channel retailing comes
omni-channel crime. And unlike merchants, fraudsters share information at the
speed of light without the constraint of regulation or commercial imperative;
which is why they are usually one step ahead of the good guys. Thanks to the internet, the world is a smaller place and most people can now
buy goods from any country. Unfortunately so can criminal gangs. Using fake
payment methods, from stolen credit card numbers to mobile wallet accounts,
they can systematically attack companies around the world. Online merchants
need to respond.
Any good Loss Prevention team pays for itself. Yet the report highlights that
49% of teams feel under-resourced to adequately deal with the escalating
threats their businesses face, leaving them vulnerable. This is a false
economy and serious misjudgement. Criminal gangs are sophisticated. They
will harvest this information, usually through social engineering, then hit
that under-resourced company for many times more than a Loss Prevention
team’s required budget, sometimes even leaving the company broken and
unable to recover.
Fraudsters evolve rapidly to respond to the obstacles they face in carrying
out their business. The information contained in this report and the dynamic
approach it promotes, should give merchants both the wake-up call and
potentially the tools to do the same.”
“This is a valuable contribution to the community of fraud
professionals as it helps benchmark each company’s strategy,
both in terms of resource management and channel/region
focus. Like all good surveys, it helps you to start to ask the right
questions and to reflect on the direction you should be taking
your company”
Considine Diarmuid
Senior Commerce Operations Manager at Skype
49%
of teams feel under
resourced to adequately deal
with the escalating threats
their businesses face
Fragmentation
of Fraud
4
Executive summary
The fraud landscape is increasingly fragmented
The fragmentation of fraud
Worldpay’s research, developed with fraud experts in over 270
organisations, reveals that the proliferation of countries, channels and
purchase methods is creating a “fragmentation of fraud” for merchants.
This splintering effect has resulted in a variety of fraudulent techniques
and practices that are increasingly difficult to manage.
Proliferation of markets
Merchants trading online are increasingly looking further afield to drive
growth. As the report shows, new geographies and different business
models increasingly figure in their growth aspirations, creating new
challenges in fraud management. Merchants in our survey already sell
to an average of 14 different countries, with this figure increasing to an
average of 23 for US merchants.
Research methodology
274 interviews were conducted among those responsible for
online fraud management in international merchants (with $50m+
turnover or equivalent) across 5 verticals, based in the UK, USA,
China, Russia, Japan and India.
Respondents completed a survey in September and October 2014.
Research was conducted by Loudhouse, an independent research
agency based in London.
Figure A: Sample breakdown
by country
Figure B: Sample breakdown
by sector
UK
47
Retail
68
USA
53
Airline
50
China
43
Travel
55
Russia
40
Japan
40
Video games and
digital content
51
India
51
Gambling
50
Total
274
Total
274
Fragmentation
of Fraud
5
Proliferation of channels
The proliferation of different channels is a crucial driver for merchant
growth. Following the wild growth of m-commerce and the omni-channel
approach, the goal of integrating multiple sales channels is increasingly
seen as the benchmark, further multiplying potential fraud risks. As
evidence of this, around 77% of merchants report that, within two
years, purchases on mobile devices will make up a greater proportion
of customer orders than now. This is expected to be even more likely in
China (86%) and Russia (85%).
Proliferation of payment types
As merchants expand into new markets, to reach more consumers and
increase sales, they need to consider new payment methods, including
locally relevant payment types. These so-called “alternative” forms of
payment typically have very different fraud and risk profiles to traditional
credit card payments. Some 79% of merchants say that, within two
years, alternative payment methods will make up a greater proportion of
customer orders than now.
Merchants are losing the battle – and need support
Keeping Up
Worldpay’s research shows merchants don’t have the appetite to invest
heavily in keeping pace with the increasingly complex fraud landscape. Many
are painfully aware of the scope of the evolving challenges. The increasing
focus on online payments and the proliferation of fraud across different
countries, channels and payment methods is making it harder than ever for
merchants to manage risk.
Merchants are painfully
aware of the scope of
evolving challenges
Fragmentation
of Fraud
6
Research Highlights:
•
77% of merchants say a multi-channel payments
approach makes fraud more difficult to identify,
manage and prevent
•
63% say their organisation struggles to keep
ahead of fraudulent activities across payment
methods
•
Around 70% admit they already struggle to keep
ahead of fraudulent activities across borders
•
79% admit combatting fraud in this changing
landscape is a significant challenge for their
organisation
•
Just one in five companies (20%) is very confident
about its ability to manage new fraud threats
Finding the right solution
A comprehensive, tailored approach
Worldpay’s research revealed that merchants are
seeking comprehensive solutions that account for the
ever changing global payments landscape. Specifically,
merchants want risk management solutions that address
multiple channels, across multiple payment types, in
multiple markets. They also want tailored advice and
tools, which have been designed with their sector in
mind, and to be supported by fraud experts who work in
partnership with them.
Research Highlights
•
89% would like a risk-management solution that
includes all payment types, not just cards
•
E-wallets (78%) and mobile payments such as
SMS (75%) are areas of fraud anxiety amongst the
merchant community
•
78% want a risk management solution tailored to
their industry
Fragmentation
of Fraud
7
So what?
Online commerce businesses are struggling to manage fraud threats
across borders, purchase channels and payment methods. These
three elements are expected to “fragment” even further in the next few
years. Without the tools to gain an overview of these myriad individual
payments, organisations are ill-equipped to identify, manage and prevent
fraudulent transactions now and in the future.
This report highlights the fact that merchants should consider fraud
management solutions that are tailored to their specific sector and
business. Moreover, these solutions must be easy to use and simply
integrated into existing systems and processes. Many don’t have the
time, expertise or budget to carry out the comprehensive work required
to navigate the fragmenting landscape. Partnership with an expert
fraud provider is an essential step in reducing the costs of fighting the
fragmentation of fraud.
Without the tools to gain
an overview of these myriad
individual payments,
organisations are ill-equipped
to identify, manage and prevent
fraudulent transactions
Research Highlights
•
82% would like a partnership approach with a fraud expert
•
57% of merchants said they need a dedicated omni-channel fraud
and loss prevention team
•
However merchants lack the capacity to implement this. Around
50% don’t have the time, 45% lack budget and 45% don’t have
the knowledge
Fragmentation
of Fraud
8
Detailed findings
This section presents the research
findings in more detail.
It is split into five parts:
1
Go
The fraud landscape
2
Go
Fragmentation by market
3
Go
Fragmentation by channel
4
Go
Fragmentation by payment method
5
Go
Fighting future fraud
Fragmentation
of Fraud
9
1. The fraud
landscape
Figure 1: Key challenges in
identifying and preventing fraud
70%
Growth of
mobile
payments
Expanding global reach brings complexity
The fraud landscape has never been more complex for merchants. The
internationalisation of markets and evolution of purchase channels has
opened the door to both revenue opportunities and greater fraud risk.
Merchants feel challenged. 79% admit the proliferation of customer
markets, purchase channels and payment methods is a significant
challenge for their organisation when it comes to fraud.
Key challenges
The key challenges facing merchants when identifying and
preventing fraud are:
•
Proliferation of channels, including mobile payments
•
Proliferation of payment types, including e-wallets
•
Proliferation of countries sold to, including purchases from
particular countries
65%
Purchases from
particular countries
60%
Number of channels
merchants utilise
58%
Number of countries that operated in / sold to
54%
Growth of e-wallets
50%
Keeping up with fraud trends and new fraudulent activities
47%
Number of payment methods accepted
Fragmentation
of Fraud
10
Figure 2: Biggest fraud concerns
In some cases, it is the sheer number of countries or channels to
manage that creates the problem. For others, it is specific countries
or payment methods – in particular mobile payments and e-wallets –
that create the most concern.
Against this backdrop, just 20% of merchant organisations are
confident about their ability to manage new fraud threats, dropping
to just 13% in the UK.
Half of respondents to Worldpay’s survey say that keeping up with
fraud trends is a challenge.
Changing fraud patterns
Perceptions of fraud vary around the globe, and Chinese merchants
are more concerned than average about the levels of fraud – 67%
say the volume of fraudulent online transactions has increased over
the last 2-3 years. Identity theft emerges as a particular concern in
India (80%) along with friendly fraud (75%). Meanwhile, Japanese
merchants are more concerned than those in other markets about
phishing, pharming and whaling (73%). Globally, merchants are most
concerned by: identity theft; phishing/pharming/whaling; account
takeover; friendly fraud; clean fraud (see Figure 2).
Identity theft is a
particular concern
in India (80%)
71%
66% 63%
Account
takeover
Identity
theft
Phishing/
Pharming/
Whaling
61%
Friendly fraud
40%
Affiliate fraud
54%
Clean fraud
35%
Triangulation schemes
50%
Botnets
28%
Man in the middle attack
43%
Card testing
4%
New threats not listed here
42%
Re-shipping
For glossary of terms click here
Fragmentation
of Fraud
11
2. Fragmentation
by market
Figure 3: Markets perceived to
have most perpetrators of fraud
International fraud
Merchants in our survey already sell to an average of 14 different
countries, and for US merchants, this figure increases to an average of 23.
This complexity is only set to increase. 76% believe that, in two years’
time, international orders will make up a greater proportion than they do
now (increasing to 98% in China).
Outside of the US and Canada, regions with the most fraud perpetrators
are Asia Pacific – in particular India, Japan, Russia and China. Dealing
with the different languages and approaches to fraud in each of these
geographies presents unique challenges to merchants operating abroad
(See Figure 3).
Coping with international fraud
In this context, 7 out of 10 of merchants admit they already struggle to
keep ahead of fraudulent activities across borders. A similar number
believe fraud levels in particular countries will increase in the next two
years for their organisation. This is particularly the case for merchants
based in China (91%), while the UK is less pessimistic (55%).
Merchants in our survey
already sell to an average of 14
different countries, and for US
merchants, this figure increases
to an average of 23
Fragmentation
of Fraud
12
A comprehensive approach required
A number of unique challenges exist for merchants operating in multiple
countries, requiring a comprehensive approach to tackling fraud (see
Figure 4). In particular:
•
Integration of cross-border systems and gaining the right data for
authentication purposes or single view of a customer
•
Increased volume of transactions or fraud in some countries vs.
others (and neglect of certain markets), coupled with a lack of global
oversight
•
Difficulty keeping up with foreign fraud management tools,
complicated by language differences
Further internationalisation looks inevitable for many merchants,
which will exacerbate these challenges, and reinforce the need for
fraud management solutions that can simultaneously address multiple
markets, languages and fraud types in an integrated way.
Figure 4: Main challenges of
managing fraud across countries
58%
51%
Integration between systems
in individual countries
Difficulty keeping up with
different tools for each country
52%
49%
We focus on some countries that
are more likely to have fraudulent
transactions, and neglect the others
Increased volume of transactions
from particular countries
43%
Gaining a single view of an
individual customer
39%
Lack of oversight over all countries
at a global level
“Thanks to the internet, the world is a smaller place and most people
can now buy goods from any country. Unfortunately so can criminal
gangs. Using fake payment methods criminal gangs can systematically
attack companies around the world. Online merchants need to
respond.”
36%
Language differences
31%
Internal pressure to operate in or sell
to different countries
Tony Sales, ex-fraudster
Fragmentation
of Fraud
13
3. Fragmentation
by channel
Figure 5: Channels perceived
to be most prone to fraud
69%
Channel proliferation increases risk
Merchants continue to expand into multiple channels to help fuel growth
– 77% say that, within two years, purchases on mobile devices will make
up a greater proportion of customer orders than now. ‘Omni-channel’ is
an emerging concept for merchants seeking to simplify the consumer
experience across its sales channels. This shift brings opportunities, but
equally requires continued focus with three in four merchants focused
on operating via new channels in the next two to three years.
Channel proliferation comes with challenges. Some (77%) say a multichannel approach makes fraud more difficult to identify, manage and
prevent. A similar number say it leads to greater exposure to fraud risk.
This is expected to be even more likely in China (86%) and Russia (85%).
Around 75% envisage that mobile fraud levels for their organisation will
increase in the next two years.
Third-party fraud
The channel perceived to be most prone to fraud currently is online sales
through a third-party website.
Witness the huge success of Amazon, eBay and Alibaba. Gartner
forecasts that by 2017, 70% of e-commerce sites in North America will be
dependent on services from Amazon and/or eBay.
Online sales
through third
party website
64%
Mobile commerce
(m-commerce)
55%
Online
website
39%
Partner / sales agency /
broker sales
77%
36%
Telephone / call centre
say a multi-channel
approach makes fraud more
difficult to identify, manage
and prevent
34%
Catalogue/mail order
25%
Stores/branches
8%
I don’t think that our channels
are prone to fraud
Fragmentation
of Fraud
14
Figure 6: Biggest mobile risk factors
The emergence of m-commerce brings further uncertainty with 64%
believing mobile is highly prone to fraud. The key concerns for merchants
are, as highlighted in Figure 6, largely connected to the security of
the device, either through malware, spyware, unsafe data & network
connections, or consumers losing their device. Tracking the device ID
used to make the purchase will continue to be a key area of focus and
innovation for merchants trying to fight fraud on mobile devices.
51%
Malware
on mobile
devices
46%
Spyware on
mobile devices
“Omni-channel retailing is exploding. But with omni-channel retailing comes
omni-channel crime. And unlike merchants, fraudsters share information
at the speed of light without the constraint of regulation or commercial
imperative; which is why they are usually one step ahead of the good guys.”
46%
Unsafe network and
data connections
Tony Sales, ex-fraudster
43%
Consumers losing their mobile devices
34%
Insecure applications / apps
34%
Consumers not employing best practice
for safe mobile transactions
Fragmentation
of Fraud
15
4. Fragmentation by
payment method
Figure 7: Level of fraud concern amongst those
currently accepting each payment method
18%
18%
The growth of alternative payments
Offering relevant payment methods is a crucial element of growing
internationally, as shown by the 2nd edition of Worldpay’s Alternative
Payments Report. The share of alternative (non-card) payment methods
is expected to rise to 59% of all e-commerce spend by 2017, driven by
consumers in emerging markets and the rise of e-wallets.
This view is shared by the merchants we surveyed, with 79% believing
that within two years, alternative payment methods will make up a
greater proportion of customer orders than now.
New payment methods – new problems
Against this backdrop, 73% of merchants surveyed think that non-card
payment fraud levels (as a percentage of all online transactions) will
increase in the next two years. 63% of merchants say their organisation
struggles to keep ahead of fraudulent activities across payment methods
today, rising to 74% among merchants in China.
New virtual currencies such as Bitcoin are becoming a material concern
for merchants (82%), as highlighted in Figure 7. E-wallets (78%) and mobile
payments such as SMS (75%) also register as areas of fraud anxiety
amongst the merchant community. Mintel reports that the number of
Chinese people making payments through mobile phones reached 125
million last year, up 126% from the previous year.
18%
18%
22%
22%
35%
35%
43%
43%
39%
47%
47%
Credit
Credit card
card
25%
25%
26%
26%
45%
45%
Virtual
such
asas
Bitcoin
such
as PayPal
Virtualcurrency,
currency,
such
Bitcoin E-wallet,
E-wallet,
such
as PayPal
33%
33%
23%
23%
49%
49%
45%
45%
Mobile phone, by SMS/text
Mobile
phone, by
SMS/text
to customer’s
mobile
bill
to customer’s mobile bill
Debit card
Debit card
17%
17%
40%
40%
Direct bank transfer, such
as via
online
banking
Direct
bank
transfer,
such
as via online banking
39%
39%
21%
21%
40%
40%
Prepaid card, giftcard
Prepaid
card, giftcard
or cashcard
or cashcard
10%
10%
14%
14%
62%
62%
45%
45%
42%
42%
33%
33%
28%
28%
41%
41%
Offline banking payments
Offline banking payments
Cash on delivery
Cash on delivery
Very concerned
Somewhat concerned
Not very concerned
Fragmentation
of Fraud
16
Reasons for concern vary. Some payment methods are considered
fundamentally less secure (79%) while others are seen as more likely targets
for hackers (69%). Meanwhile, less than effective solutions to identify and
fight fraud in certain payment methods are also a concern (55%).
Figure 8: Challenges in identifying,
managing and protecting against fraud
across different payment methods
Fragmenting payment methods
The reasons all point to a lack of confidence in the ability to manage
fraud across payment methods. The rise of alternative payment methods
will continue to contribute to the fragmentation of fraud.
Key challenges to identifying, managing and protecting against fraud
across different payment methods are similar to those for new markets.
Merchants point to (see Figure 8):
•
Lack of visible fraud data across all payment methods
•
Gaining a single view of each customer
•
Increased volume of transactions for particular payment methods
•
Difficulty keeping up with different tools for each payment method
58%
“There are many ways that fraudsters can “pay” for goods. The most
obvious method is stolen credit card numbers, but there is an ever
widening choice. E-wallets are used by fraudsters to not only pay for
goods but also to steal money from the victim.“
Lack of visibility
over all payment
methods at a
holistic level
52%
50%
Increased volume
of transactions for
particular payment
methods
Gaining a single view of
an individual customer
50%
45%
36%
Focus on some payment
methods that are more
likely to have fraudulent
transactions, and
neglect others
Difficulty keeping up
with different tools for
each payment method
34%
Integration between
systems for individual
payment methods
Internal pressure to offer
new payment methods
Tony Sales, ex-fraudster
Fragmentation
of Fraud
17
5. Fighting
future fraud
Ensuring tools are relevant
Merchants are clear about how they would like to tackle future fraud
and are clear on partners to work with. But they are struggling to find a
solution under one roof.
Figure 9: Barriers to controlling / reducing
level of fraudulent orders and transactions
49%
57%
Lack of time to investigate
or implement methods
Not having a dedicated
omni-channel fraud and loss
prevention team
Currently, the main tools and tactics used to prevent fraud are
validation services (93%) or proprietary/customer data (83%).
These tools remain the most likely to be used in two to three years’ time.
Purchase device tracking and multi-merchant data are less frequently
mentioned. Just under half of merchants, however, review their fraud
prevention and risk management strategy every six months or less.
Typically it is reviewed annually (42%). Given how quickly fraud threats
evolve, this may no longer be enough.
Barriers to change
Merchants identify a number of barriers to controlling, and therefore
reducing, their organisation’s level of fraudulent orders and payments.
These include not having a dedicated omni-channel fraud and lossprevention team, lack of time to investigate / implement methods, lack
of budget, or the perceived high cost to invest in better processes and
measures (see Figure 9).
29%
Fraud levels are not
deemed high enough
45%
Lack of budget / high cost
to invest in better processes
or measures
42%
Lack of knowledge / not
clear how we would do it
26%
Challenges with
system integration
40%
Inadequate methods
available on the market
31%
Lack of senior buy-in
Fragmentation
of Fraud
18
Figure 10: Relative importance of elements
in a fraud management solution
Deploying the right tools
Merchants also point out that, in today’s fragmented landscape,
fraud-prevention tools should include all types of payment method
transactions, not just cards (89%). The optimum system for identifying,
managing and preventing fraud in their organisation would be tailored
to their industry (78%).
Beyond this, attributes merchants appreciate in a fraud solution are ease
of use, integration with other systems and applications, and a solution
that is customised to the needs of the business (see Figure 10).
Partnership with a fraud expert is also seen as crucial to keep ahead of
threats (82%).
Ease of use
61%
34%
5%
Intregration with other systems and applications
55%
42%
4%
Customised to the needs of my business
53%
41%
5%
Provision of real time reports and performance
49%
38%
13%
Uses many data sources so decisions are more accurate
49%
41%
10%
49%
3%
Relevant to my industry
48%
“Any good Loss Prevention team pays for itself. Yet the report
highlights that 49% of teams feel under resourced to adequately
deal with the escalating threats their businesses face, leaving them
vulnerable. This is a false economy and
serious misjudgement. “
Tony Sales, ex-fraudster
Provision of training and development to enhance the skills needed
47%
47%
6%
Demonstrated track record of effectiveness and success
45%
45%
11%
50%
10%
Short implementation time
41%
A close partnership with the fraud prevention solution provider
Very concerned
39%
51%
10%
47%
15%
58%
6%
Future - proof
38%
Overall cost
36%
Critical
Fairly important
Fragmentation
of Fraud
Not particularly important
19
Conclusion
The new battle lines are drawn
Managing fraud is an ongoing battle for merchants.
Internationalisation will continue apace – as will
the challenges of staying ahead of fraud. Adding
new payment methods and broadening reach adds
complexity and uncertainty. Merchants are looking
for better advice to ensure the risks of expansion
are calculated.
Sales channels will continue to evolve. The
mobile payments market will continue to grow
exponentially. The avenues open to the fraudster
are multiplying and diversifying.
Customer choice or security?
Battening down the hatches is not the only
answer. Market conditions and consumer demand
dictate that merchants must offer choice and
flexibility. It is clear the fragmentation of fraud
that results from these market forces is proving
a complex challenge to merchants keen to
maximise revenues without leaving
themselves exposed.
Many of these challenges arise from a lack of
visibility across countries, channels and payment
methods. This results in difficulty in even
identifying the extent of the problem, let alone
effectively managing it.
Keeping up with the different threats that are
emerging across the global payments landscape,
as well as the tools that are available to tackle
these threats, are pain points for merchants.
The time to act is now
All merchants face challenges in providing
dedicated resources, budget, time and knowledge.
But standing still will not solve the challenges
identified in this report. Merchants are increasingly
demanding a comprehensive fraud solution across
markets, channels and payment types, which
recognises that each sector is different. Whether
retail and gambling, video gaming or airlines, every
sector faces common challenges but, at the same
time, very specific threats.
The research highlights merchants’ key needs:
•
The automation of specialised investigations
•
A risk-management tool that includes all
payment types
•
A risk-management tool that is tailored to
their industry
•
A partnership approach with a fraud expert
Merchants are demanding
a comprehensive
fraud solution
Fragmentation
of Fraud
20
Glossary of
terms
Pharming
Redirecting a website’s traffic to a fake site.
Phishing
Luring victims into surrendering information that will be used for
identity theft.
Whaling
Hijacking the computers of top-ranking business execs.
Account takeover
Posing as a genuine customer to gain control of an account.
Identity theft
Stealing personal details to commit fraud.
Friendly fraud
Making an online purchase then disputing the charges in a bid to win
a refund.
Affiliate fraud
Simulating campaign traffic to earn fraudulent commissions.
Clean fraud
Using detailed information about customers to ensure fraudulent
transactions on their stolen credit cards pass merchants’ typical checks.
Triangulation
A process involving buying an item online with a stolen credit card then
selling it on an auction site.
Botnets
Distributing malware that turns a victim computer into a bot that performs
automated tasks over the internet.
Man-in-the-middle
attack
Interjecting into a communication between two parties – then making
demands from either party in the guise of the other.
Card testing
Making low-value online purchases using stolen credit cards or randomly
generated card numbers in a bid to identify valid card details.
Re-shipping
Purchasing items online with stolen credit cards then incentivising unaware
third parties into forwarding the goods on.
back to page 11
Fragmentation
of Fraud
21
Fragmentation
of Fraud
November 2014
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payment services. Worldpay (UK) Limited is authorised and regulated by the Financial Conduct Authority for consumer credit
Activities Worldpay, the logo and any associated brand names are all trade marks of the Worldpay group of companies.