[ISN] Secret hackers to aid war on internet fraud

From: William Knowles (wk@private)
Date: Sun Apr 04 2004 - 23:02:48 PDT

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    http://www.timesonline.co.uk/article/0,,5-1063208,00.html
    
    April 05, 2004 
    By Joe Morgan
     
    FEARS that small online retailers are the weakest link in the fight
    against internet fraud have prompted MasterCard, the global payment
    scheme group, to set up secret teams of hackers to test security
    systems in the sector.
     
    The Times has learnt that the project, named Site Data Protection
    (SDP), will go live in May and will target online outlets that fail to
    comply with appropriate levels of internet security. SDP teams will be
    recruited by the banks that have relationships with online merchants
    whose systems do not come up to scratch.
    
    Brian Morris, head of e-business solutions at MasterCard, said that
    while large online retailers had robust internet security systems,
    small and medium-size enterprises (SMEs) "could benefit from the
    assistance".
    
    Organised criminal gangs are increasingly hacking into the systems of
    online retailers and stealing subscribers' credit card and personal
    details. The information can then be used to commit "card-not-present
    fraud" - fraudulent buying of goods and services from a remote
    location, usually by phone or via the internet.
    
    Card-not-present fraud is thought to be one of the world's fastest
    growing crimes. Stolen personal details have also been used by gangs
    to commit "phishing", sending fake e-mails purporting to be from a
    bank or retailer to cardholders to trick them into revealing bank
    account details. MBNA and Barclays were recently victims of phishing.
    
    Mr Morris said: "This initiative will help a lot of merchants.  
    Websites will be tested to see if firewalls are secure enough and
    backdoor and trapdoor areas are not susceptible to hackers. We will
    also test all routes in and out of sites."
    
    He said that the cost of the services would be determined by the 
    banks. Medium-size retailers' exposure to fraud could also rise 
    dramatically following this year's nationwide roll out of chip and 
    PIN, a new anti-fraud initiative pioneered by the banks. While large 
    retailers benefit from economies of scale in upgrading to the new 
    checkout terminals, where customers pay using a four-digit number, 
    smaller businesses find the costs a heavy burden
     
     
    
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