Decreasing compromises eliminates exposed payment card data What if a technology could stop hackers from compromising the card data in the first place? No compromised data, no fraud. Hundreds of fraud-fighting tools help merchants keep the fraudsters from using stolen data at their place of business. It’s similar to the relationship between breaches and fraud. ![]() The truth is that many people are too lazy to take preventive care seriously and would rather deal with a cold when they get one. Preventive care is a growing segment that does just this by building up the immune system, making sure you drink plenty of water, take supplements, and wash your hands often. However, what if you could not catch a cold in the first place? Wouldn't that be better? In other words, fighting symptoms is a never-ending fight. Viruses will always be lurking around the corner, and there is a vast industry of cold-fighting medicines and supplements. While I support the philosophy that decreasing fraud increases authorizations, focusing on this understanding alone misses a much more significant point. Also, the card can then be flagged as compromised, meaning that the cardholder can't use it at all until a new one arrives in the mail, all of which results in a decrease in authorizations and in cardholder satisfaction. This is a frustrating pattern for the cardholder and banks. Sometimes good transactions are flagged as bad, and a good sale doesn't happen. These anti-fraud tools are often quite sophisticated and include neural network, artificial intelligence (AI), fraud scoring, 3D Secure and many other tools. Anti-fraud tools abound in the industry to weed out such fraudulent transactions. Moreover, any time a sale occurs, everyone is happy: the cardholder, the card issuing bank, and the acquiring bank that processes the transaction.įraudsters buy compromised card data from the dark web and attempt to use the information to buy goods or services. An authorization, of course, means that a payment transaction is approved and a sale happens. I’ve heard that decreasing fraud increases payment authorizations. Decreasing payment card fraud increases authorizations The only place we can get a good understanding of that is by looking into the success, size and scope of the dark economy that lives and thrives on stolen data. I also believe the dark economy that is supported by breaches and fraud is alive and well.Īs important as it is to understand what happens when things go wrong, it may be even more important to study what happens when we don't know that things are wrong. ![]() I believe that many more businesses than most would guess are breached every day as hackers know how to leak just enough card data from each business to stay under the radar. However, the problem is much more severe. Their data builds a strong picture of what happens when things go wrong and has been very helpful in raising the alarm for many unprepared merchants. I study ITRC's breach statistics monthly and the attack vectors hackers employ as published annually by Verizon’s Data Breach Investigations Report (DBIR), and I know about the impact and costs of breaches from studying Ponemon Institute’s annual report. To put that in perspective, $1.5 trillion is larger than the 2018 GDP of Spain, Australia or Mexico. A conservative estimate based only on data drawn from five of the highest profile and lucrative varieties of revenue-generating cybercrimes.” “Though it constitutes a relatively new criminal economy, cybercrime is already generating at least $1.5 trillion in revenues every year. Michael McGuire’s alarming study, into the Web of Profit: Understanding the Growth of the Cybercrime Economy: His presentation shined a light on the dark economy, how it mirrors the real economy and how it is proliferating. ![]() Orfei, former general manager of the PCI Security Standards Council, to speak at a recent Bluefin Summit.
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