Some facts about frode

We at Web-payment.ru , a website about payment systems with monitoring exchangers, are very concerned about the growth rate of fraud with bank cards. In Russia, losses from fraudulent operations from 2006 to 2013 increased 10 times (according to FICO reports)! In 2012, Cybersource 2013 reports that electronic fraud cost the e-commerce industry $ 3.5 billion, and this is only in the United States. That is 0.9% of turnover.



Two reasons why 0.9% is an unacceptably large number:

• The loss of 0.9% of revenues is one-eighth of the industry average net profit (6.8%). Without fraud, the field of online commerce will become almost 13% more profitable.
• A business could reinvest this profit in ways that would help customers and the economy. For example, offering lower prices or hiring more employees.

The reputation of sellers suffers, they are forced to make returns and allocate resources to work with their worst customers. Buyers receive price increases, are unhappy with the long pages of the order and wait longer for their delivery.



One company that provides fraudulent transaction detection software shares a list of transactions on its blog that are more likely to be dangerous:

• Fraudsters hold a pile of dough on a pile of cards. If a client has a lot of credit cards opened in different banks, the probability that his order is associated with fraud increases by 7 times.
• Scammers do not like capital letters. If the client has filled the column “full name” in lower case letters, suspicions increase 2.7 times.
• Scammers (practically) never sit still. The probability that a buyer who makes purchases using several different postal codes in one week, the probability that he does it illegally grows 30 times.
• Fraudsters prefer one-time email addresses. Mail addresses containing two or more digits in the title are twice more often used by fraudsters than emails containing less than two digits.
• Most scammers are night owls. The chance that a transaction at 2 am at night is illegal increases 1.5 times, at 4 am this probability increases 2 times.

The biggest internet scams

Online fraud is very expensive. The leak of data from the Target retail chain at the beginning of this year was estimated at $ 200 million.

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Let's go back in time to remember the 5 biggest online scams of all time:

5. Dating scam worth 1.3 million dollars

In 2013, Canadian retired Helen lost all her savings in the amount of $ 1.3 million because of “Dave.” “Dave” struck up a conversation with Helen and achieved the favor of a lonely woman who thought she had found a life partner on an online dating site. Scammers on such sites choose victims of vulnerable men and women as victims, and try to get money, gifts, and other services from them. It is easy to fake a personality, invent your story and establish a connection, being on the other side of the screen. As soon as the criminals manage to deceive a person into “relationships” in the digital world, it remains only to come up with plausible reasons for the victim to send money outside the country.



And although 1.3 million is a very small number for our list, it is important to mention this deception as the most expensive of its kind (fraud on dating sites). Moreover, the most remarkable thing in this situation is that the woman gave 1.3 million of her own free will.



By the way, some facts ...

• In 2013, online dating scams cost victims $ 90 million .
• People who get online scams lose an average of about 21,000 dollars.
• Every tenth user profile on online dating sites is a fraudster profile.

4. ATM scam with theft of $ 85 million criminal gang

The largest ATM scam of all time occurred in 2013, when computer hackers, having penetrated into the systems of major processing companies, in a few minutes stole data of thousands of credit cards. After that, they used this information to steal $ 45 million from hundreds of ATMs around the world.



Despite the arrest of 8 New Yorkers and 2 citizens of Holland after this attack, a few weeks later, the industry was shaken by a similar operation: the criminals chose another processing company and another bank as their target. This time, hackers stole 40 million dollars.

3. Theft of $ 200 million by an international criminal gang of credit fraudsters

In 2013, the FBI arrested 18 members of an international global criminal network that dealt with credit card fraud. This organization was responsible for stealing $ 200 million. The scam was to fake 7,000 IDs to steal thousands of credit cards that were used to “borrow” large sums of money. To get this money, fraudsters inflated the credit limits of the fake “clients” they created, by providing fake information to the credit bureau.

2. The loss of 200 million dollars as a result of the activities of an international criminal organization

The most stringent in the history of the sentence for computer crime - 20 years in prison - was announced by the US Federal Court in 2010. Hacker Albert Gonzalez was found guilty of leading a notorious international criminal organization that stole data from hundreds of millions of credit cards by hacking into accounts at various retail stores. Acting under the hacker pseudonym SoupNazi, Gonzalez personally saved up $ 2.8 million, which he used to live on a grand scale, buying luxury cars and Rolex watches.



The authorities estimate that the scam cost the business $ 200 million. The total economic damage is estimated at over $ 1 billion.

1. The largest cybercrime case ever recorded in US history

In July 2013, after five years of investigations, federal agents arrested 5 people for breaking into Nasdaq, Visa, Citibank, JetBlue Airways and other international corporations. Among those arrested were Russians and Ukrainians. This credit card fraud case caused companies worldwide to lose over $ 300 million in damages.



According to certain estimates, by installing malware on Nasdaq servers, hackers stole 160 million card numbers, hid evidence of a crime by disabling antivirus programs on infected computers, and also placed data on various hacker platforms. After that, they sold and used this information to make huge profits. It also turned out that the scammers had links to Gonzalez’s organization.