Security News > 2008 > December > 10 Faces of Fraud: The Greatest Risks to Banks in 2009
http://www.bankinfosecurity.com/articles.php?art_id=1098 By Linda McGlasson Managing Editor BankInfoSecurity.com December 9, 2008 From Hannaford Brothers to Countrywide, this year has been full of stories of criminal activity on the Internet, with hackers and phishers wreaking havoc on computer systems and consumers, causing credit and debit fraud numbers to soar. What does next year hold for fraud against financial institutions? Here are 10 of the new and old ways criminals will be looking to commit fraud in 2009. 1. ATM Network Fraud According to Paul Kocher, president and chief scientist of Cryptography Research Institute, the number one area that institutions will see fraud growing over the next year is in ATM networks. "When the criminal gets access to magnetic stripe data and associated PIN values, they are then able to create cards, and basically then it's a license to print money," Kocher explains. Another problem for institutions is that their ability to perform risk management is significantly less on an ATM network than online transactions. "This is because the ATM delivers the goods to the consumer immediately to them, which is exactly what the fraudsters want -- the cash, rather than a large ticket item they have to then fence or resell," he concludes. Kocher predicts that until U.S. financial institutions and credit card companies roll out either a contact or contactless-based smart card infrastructure, there won't be a great reduction in the amount of fraud being perpetrated against U.S. consumers. "Once they decide to do this, it will cause a great reduction in the amount of fraud, because we've seen it happen in Europe," says Kocher. [...] _______________________________________________ Help InfoSecNews.org with a donation! http://www.infosecnews.org/donate.html