[ISN] 10 Faces of Fraud: The Greatest Risks to Banks in 2009

From: InfoSec News <alerts_at_private>
Date: Wed, 10 Dec 2008 04:19:01 -0600 (CST)

By Linda McGlasson
Managing Editor
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.


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Received on Wed Dec 10 2008 - 02:19:01 PST

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