Consumer study finds fraud fears deepening

By Kevin White

 

Unisys security index pushed up by ID and fraud concerns

 

Consumers in Belgium apparently feel least anxious about online security than people in any other European country.

 

In an Index that tracks trends in consumer perception of security issues among approximately 8,500 people in nine countries, Unisys has reported that ID theft and fraud fears have surged in the last six months as recession bites.

 

"Reports that fraudsters are increasingly moving online, in addition to well publicised security breaches, may have also helped push up the Unisys Security Index for Internet security concerns from 105 a year ago to 121 in the UK," the company said.

 

According to the survey, 69% of UK consumers are now concerned about computer security and 65% are worried about their safety and security when shopping or banking online.

 

The study assessed attitudes towards national security and epidemics, financial services security, as well as sentiment towards spam, virus and online financial transactions, and physical risk and identity theft.

 

It used measures of consumer perceptions on a scale of zero to 300, with 300 representing the highest level of perceived anxiety. The relaxed Belgians scored a low 94 on a rating of internet security concerns.

 

Overall, the average score for citizens of the nine countries surveyed is 133, representing a moderate level of concern. Those surveyed are most concerned about financial security and least concerned about Internet security.

 

Unisys said its twice yearly survey presents an interesting social indicator regarding how safe consumers feel on key areas of security.

 

Some 72% of UK citizens believe they are at greater risk from identity theft and related crimes such as credit card fraud, as a result of the financial crisis

 

Four out of every five people in Germany are extremely or very concerned about identity theft, yet under half would accept biometric technology to verify their identities.

 

As many as 88% of consumers are concerned about other people obtaining and using their credit card, debit card or bank account details or are concerned about others gaining unauthorised access to or misusing their personal information.

 

"Fraud fears have deepened as a result of the financial crisis," Neil Fisher, VP at Unisys said.

 

The company found that bankcard fraud is the greatest single area of concern across all markets, with concerns about misuse of credit or debit card details being the top concern among adults in five countries and the number two concern in four more countries.

 

Identity theft is seen as the second greatest area of concern, being the number one concern in three countries and the number two concern in four more.

 

Since the last survey six months ago, Unisys measured a jump of ten-points in its Internet Security Index and charted a significant six-point rise in its Financial Security Index. Its National Security Index continues its downward trend, while its Personal Security Index is essentially flat.

Cybercriminals Target Financial Industry

The financial sector accounted for more than nine out of 10 of the more than 285 million records compromised, says a new report by Verizon Business.

The financial industry was the hardest hit by online security breaches, revealed a new report by Verizon Business.

The sector accounted for 93 percent of the 285 million compromised records last year. Ninety percent of these involved groups suspected of organized crime.

According to the 2009 Verizon Business Data Breach Investigations Report, the "big money" in cybercrimes resides in the theft of personal identification number (PIN) information together with associated debit and credit cards.

In 2008, Verizon Business witnessed an explosion of attacks targeting PIN data.

Hackers use the PIN to withdraw cash directly from the victim's account so it becomes harder for the person to prove that the transactions are fraudulent.

Seventy-four percent of the data breaches discovered last year were caused by external sources while 32 percent involved business partners.

"The compromise of sensitive information increased dramatically in 2008 and it's past time to be vigilant about enterprise security," said Dr. Peter Tippett, vice president of research and intelligence for Verizon Business Security Solutions.

"This report should serve as another wake-up call that good security and a proactive approach are paramount to running a business in this day and age -- particularly since the economic crisis is likely to trigger a further increase in criminal activity," said Dr Tippett.

Sixty-four percent of the breaches were attributed to hackers who used a combination of methods. In most instances, the hacker exploited a mistake committed by a victim, hacked into the system and installed malware to collect data.

Almost 70 percent of these breaches were discovered by a third party rather than the victim.

 

 

Stolen identities on sale for "less than can of cola"

Fraudsters are selling personal information, such as credit-card details, for as little as 40p

Ali Hussain

 

Fraudsters are able to barter personal details online for "less than a can of cola", according to a new report.

 

The online market for stolen identities is on the increase with fraudsters touting personal information, including credit-card details, names, addresses and dates of birth for as little as 40p, according to the security software firm Symantec.

 

Its research reveals that criminals are targeting individuals for financial gain "more than ever before". The UK had the second highest level of malicious online activity in the Europe, with 11 per cent of the region's total. Germany topped the league with 14 per cent.

 

Credit-card information is the most sought-after with details selling for as little as 40p, although some could fetch £20. Bank account details sold for as much as £675, while full identities could be bought for between 50p and £40.

 

Guy Bunker, of Symantec, said: "This recession-proof underground economy is reaching such a level of growth and maturity that there are signs of a price war developing, as online criminals find it increasingly easy to steal private details, and barter to sell them for bargain prices."

 

He added that the world of online crime was no longer the preserve of "spotty teenagers" and had become increasingly sophisticated.

 

Last year, Symantec researchers uncovered 1.6 million malicious threats – where something harmful to the computer was downloaded. It observed a 192 per cent increase in spam – unsolicited emails – with 349.6 billion spam messages sent in 2008.

 

Hackers typically steal the information from computers by spreading viruses, called Trojans and Worms, that record the keystrokes made as users log on to their online banking or e-mail accounts. They then tout the stolen passwords on internet chat-rooms frequented by criminals who swap the data for cash.

 

Symantec, which produces online security software, such as Norton Anti Virus, emphasises the need to keep up to date with your protection. Failure to do so could make it easier for fraudsters to access your computer details, especially if you are constantly online through a broadband connection.

 

You can buy anti-spyware and anti-virus software from the likes of Symantec and McAfee, although there are plenty of free options which work just as well for most users. Anti-Virus Guard (www.free.avg.com) offers good all-round free anti-virus software while Zone Alarm (www.zonealarm.com) offers a free "basic firewall" which prevents hackers from accessing your files without your permission.

 

If you are worried that you may have been a victim of fraud, you can check your credit rating by contacting the credit reference agencies Callcredit, Equifax and Experian. It costs £2 for each file.

 

You can also register with Cifas, the fraud-prevention service, for £13.80. This earmarks your details. When you apply for a financial product, you will be asked further security questions to confirm your identity.

 

Credit cards compromised by fake security software

Credit cards compromised by fake security software

Criminals tricking internet users into giving up credit card details.

Consumers are being tricked into giving up credit card details and other sensitive information by criminals offering fake security software.

 

According to the latest security intelligence report from software giant Microsoft, the high-profile nature of some recent viruses has led to increased awareness about the importance of online security.

 

However, the study found that some criminals have taken advantage of this by tricking consumers into downloading "rogue security software that provides little or no real protection, and may actually be malicious in nature", according to Vinny Gullotto, general manager of Microsoft's malware protection centre.

 

"These criminals now have the user's valid credit card details, and a wide-open pathway for downloading more malicious software onto the victim's computer," he added.

 

The report from Microsoft also found that 97% of emails sent through the internet are unwanted spam messages.

 

Microsoft blamed improvements in technology for the prevalence of spam, as senders have been able to take advantage of new software and hardware to create more emails.

Analyst Quote of the Year - 2009

 

    "I would highly recommend [to any consumer] not entering their PIN anywhere on the Internet unless it were hardware-based" - Avivah Litan

 

Avivah Litan is a Vice President and Distinguished Analyst in Gartner Research. Her area of expertise includes financial fraud, authentication, identity theft, fraud detection and prevention applications and other areas of information security and risk. She also covers payment systems and financial flows in the business-to-consumer and business-to-business markets.

 

 

Cybercrime More Profitable than Drug Trafficking

Cybercrime Running into Trillions Experts Say...

   

    Survey says cyber crime overtakes physical crime

    According to a global survey of over 3,000 IT managers spanning all industries and company sizes com ...

 

    More money is now being made from cybercrime than the billions that come from drug trafficking, AT&T's Chief Security Officer Edward Amoroso has told a US Senate Commerce Committee.

 

    Some $1 trillion annually is being siphoned off by cyber criminals according to the security chief, an estimate that the CTO at Finjan Inc, Yuval Ben Itzhak reckons is about right.

 

    "In our Q1 2009 report on cybercrime, we revealed that one single rogueware network was raking in $10,800 a day, or $39.42 million a year. If you extrapolate those figures across the many thousands of cybercrime operations that exist on the internet at any given time, the results easily reach a trillion dollars," he said.

 

    According to Ben-Itzhak, Finjan's Q1 2009 security trends report also revealed that traffic volume to compromised Web sites has increased significantly, so luring masses of potential buyers to rogueware offerings.

 

    He believes that this could just be the beginning of a wider trend that we will experience in 2009 and 2010.

 

    "Having the large number of layoffs of IT professionals all around the world, especially in the USA, we expect a rising number of people willing to 'give it a try' and to get stolen credit card numbers, online banking accounts and corporate data that they can use to generate income," he added.

 

Posted by John B. Frank at 3/27/2009 10:06:00 AM