'Every day is Christmas' when you're stealing credit cards

The latest credit card fraud report, released recently by ACI Worldwide and Aite, has prompted quite a few reactions. Among them, Robert Capps, VP at NuData Security, a company that predicts fraudulent transactions using behavioural biometrics.

Reacting on the news that nearly 30 per cent of consumers have experienced card fraud in the past five years, Capps says the problem lies in both parties – the consumers, as well as the merchants.

“The ubiquity of eCommerce merchants that accept credit cards for payment, coupled with a lack of preparation on the part of most eCommerce merchants to combat fraud risks, and made worse by a lack of consistent cooperation between merchants, card brands, and issuing banks, to take a holistic stand against the card fraud risks,” have made the US ‘king of online card fraud’, he says.

Consumers, on the other hand, aren’t helping, either. That’s mostly because they fail to change their habits, even after they get scammed and are forced to grab a new card.

“Consumers are victims of financial/card fraud over and over, because they continue to shop at the same places, and use their cards in the same ways, even after cards have been replaced,” he says. “Often, falling victim to the same ongoing skimming and data theft attacks against a compromised retailer.”

“The relative ease in which an individual can commit credit card fraud, along with the sheer volume of cheap card account data available on the black market, makes it a highly lucrative business to be in. When combined with the number of vulnerable merchants, and the lack of accountability, well, every day is Christmas day.”

Capps concluded his comment by saying that true authentication requires more scrutiny of the end user, not just device in use, or the static data entered into a page.

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