Online Fraud Up 60% Last Year in Europe

The incidence of fraud in Europe-based online transactions is up by 60 percent in 2012 from the previous year, according to a study by the Portland, Oregon-based consultancy iovation. The countries where the most online fraud originated were Romania, Lithuania and Croatia, according to the study.

And according to a recent white paper by the Santa Clara, California-based ThreatMetrix[1], the prime target for online fraud is businesses conducting online financial service transactions. “For years, cybercriminals have focused their efforts on online financial services – in particular online banking, trading and payment processors. As a result, financial institutions have had to defend themselves against a constantly evolving body of malware targeting banking credentials and transactions,” according to the white paper.

The growing use of mobile phones also makes attacks on user identities easier, the ThreatMetrix study shows.  Mobile devices are a “green field” opportunity for many attackers, as most lack the anti-virus and anti-malware defenses now well established on desktop systems. Criminals will continue to target mobile devices, including tablets.

Non-human malware is constantly evolving and reshaping itself, the ThreatMetrix paper reports. Mobile devices offer cybercriminals new, often unprotected platforms for delivering their malicious code. For example, on the Android platform there is a widespread category of malware called OpFake that disguises itself as the OperaMini browser or otherwise uses the browser download as an attack vector. As cybercriminals get more creative in finding ways to implant malware, it’s increasingly difficult for people to protect their devices, whether laptops, desktops, tablets or smartphones.

All of this suggests that businesses would be well served to consider new security concepts for protecting B2B transactions—and to look for more reliable partners in the private sector who can assure that transactions and payments are secure and compliant.

Traxpay provides a compelling alternative. The Traxpay platform was developed to comply with the strictest banking security and regulatory standards. All funds within the Traxpay system are stored free of default-risk with the central bank. In short, our real-time transactions platform delivers more sophisticated security than traditional online B2B financial services platforms—while also addressing many other gaps and limitations of these systems, such as real-time execution, 24/7 payment capabilities, and full data aggregation and attachment. Contact us at info@traxpay.com for additional information.

[1] Five Trends to Track in eCommerce Fraud,” available at http://info.threatmetrix.com/Five_Trends_eCommerce_Fraud.html.

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