Enhance Authentication With Layered Security

  • Internet Fraud

Consumers are increasingly transacting online, which is a good thing. The only problem is the fact that fraudsters see a lot of opportunity here and take advantage of it. Ecommerce retailers are being targeted more due to the ease of account takeover and excessive amount of stored credit card information on their sites. Were seeing a dramatic increase in card-not-present fraud as cards using the Europay MasterCard and Visa Standard are being widely deployed. With that being said, merchants and banks are being told to prepare for an increase in fraud due to the online environment that EMV is focusing on.

Account takeover happens when a username and password is compromised from any given website. Once the credentials are acquired, the criminal will load them onto an automated box and direct them to as many online properties as possible to try to get into accounts. Did you know 55% of consumers use the same set of credentials across all of their online sites? That means once they get into an ecommerce site, where card data has been stored on file, they can make purchases and resell the items. This is mostly unfortunate for the merchant because they are the one dealing with the loss in the end while consumers usually have some type of protection for fraudulent transactions. Fraudsters are also starting to realize that B2B losses are extremely profitable. The transactions are larger and can go unnoticed longer. Although banks are investing in additional layers of security and authentication methods, fraudsters are still working faster than institutions can implement the secure layers.

Its been two years since the FFIEC issued an updated authentication guide. This has been good because it has forced institutions to implement more security and stronger authentication processes. Making authentication and layered security more effective needs to be a top priority. Taking the extra steps in front of customers to prevent account takeovers could save you money and time. There is also a higher need to protect mobile and online environments as fraudsters become more savvy.

The truth is, most criminals are fast, smart, well funded and have plenty of resources. Its hard protecting your bank or ecommerce site in todays fraudulent environment. Consumers are increasingly transacting and fraudsters know exactly where to focus. It may not be possible to outthink the fraudsters but at least make your defenses stronger than your competitors.

[Contributed by EVS Marketing]