Identity theft during the holiday season worries three quarters of consumers, according to a survey conducted by Generali Global Assistance. An even higher percentage, 84%, say a past data breach would affect their willingness to do business with a retailer.
As many as 57% of shoppers believe a data breach of an online merchant will pose the greatest identity theft threat this holiday season, while 22% consider a data breach of a brick-and-mortar POS system to be the most acute risk.
Continue reading “75% Of U.S. Shoppers Say Identity Theft Is A Major Holiday Concern”
On Sept. 7, Equifax revealed that it had suffered a security breach that could impact as many as 143 million consumers in the U.S., the UK and Canada. But consumers aren’t the only ones that could be affected by the breach, which occurred from mid-May through July 2017 — retailers also are facing a considerable risk.
Credit card fraud attempts increased 15% year-over-year during August 2017, a period that does not typically see such jumps in activity, according to data from Forter, an e-Commerce fraud prevention solution provider.
In an exclusive Q&A, Michael Reitblat, CEO of Forter, notes that false account creation and account takeovers are the biggest issues retailers will have to tackle in the wake of the breach.
Continue reading “Exclusive Q&A: How The Equifax Security Breach Will Impact Retail Businesses”
EMV payment regulations, which mandate the use of chip cards at the point of sale, have been effective in mitigating fraud for in-person Card Present transactions worldwide. Unfortunately, fraudsters have migrated to less protected targets, particularly the Card Not Present (CNP) transactions that dominate e-Commerce.
Non-U.S. retailers are particularly vulnerable, according to a study from LexisNexis. Non-U.S. retailers with an e-Commerce operation have the highest fraud-related costs as a percentage of annual revenue, with charges that are 22% higher than U.S. retailers, according to a study from LexisNexis. These merchants’ overall fraud costs are 85% higher than their brick-and-mortar-only counterparts.
Continue reading “Fraud Costs Foreign E-Commerce Retailers 22% More Than U.S. Brands”
Retailers are gaining confidence when it comes to handling cybersecurity issues even as data breaches continue to increase. As many as 75% of IT professionals within retail believe their organization would detect a data breach on their critical systems within 48 hours, according to the Tripwire 2016 Retail Security Survey.
The figure represents a huge jump in confidence compared to two years ago, when 42% of respondents expressed confidence about detecting a breach that quickly. In fact, 2014 totals indicated that 20% of retail IT reps had no confidence at all in detecting these kind of breaches, a number that has since shrunk down to just 5%.
Continue reading “Despite Rise In Data Breaches, Retailers’ Confidence In Handling Them Increases”
Although data security measures should be a major priority in the wake of the numerous large-scale data breaches that have occurred at retailers including Target, The Home Depot and Michaels, many retailers still haven’t taken every effort possible to beef up their payment systems’ protections.
Only half (49%) of retailers have implemented end-to-end encryption (E2EE) into their payment security plan, while 35% have implemented tokenization of payment data, according to a report from Boston Retail Partners.
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As retailers embrace new payment mechanisms geared to online, mobile and international commerce, they must be aware of key pain points and current fraud trends. According to the 2016 LexisNexis True Cost Of Fraud Study, the average volume and value of fraudulent transactions has risen sharply since last year. Overall, the percentage of revenues lost to fraud increased from 1.32% to 1.47%.
The comprehensive study of more than 1,000 risk and fraud executives in retail organizations, conducted by KS&R, looks at merchants’ attitudes toward fraud prevention, the challenges they face and the various ways of managing fraud, from automated to manual methods.
Continue reading “Fraud Percentages On The Rise, With Mobile The Most Vulnerable”
Digital goods retailers — online merchants that sell goods that are stored, delivered and used in an electronic format — have their work cut out for them when it comes to managing expenses related to fraud.
These merchants each spend an average of $10.1 million per year on fraud-related costs, and spending will likely increase in the coming months, according to research from Javelin and Vesta Corporation.
Continue reading “Fraud-Related Expenses Consume 20% Of Digital Goods Sellers’ Budgets”
As the transition to EMV makes card-present, in-store transactions more secure, fraudsters are getting more creative. They have discovered a weak point in the system: increasingly popular buy online/pick up in-store offerings. ACI Worldwide projects that attempted fraud rates for the process will increase 28% this holiday season compared to last year.
Some may ask why there is particular concern with buy online/pick up in-store services. Simply put, retailers do not require consumers to re-run their payment cards when they pick up products in store, making this channel an attractive theft option for fraudsters.
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Cyber criminals are becoming increasingly sophisticated and are implementing new tactics to capture customer data. As a result, retailers need to constantly fortify their payment systems in order to ensure data security and PCI compliance.
Due to recent industrywide data breaches, American Dairy Queen Corporation (ADQ) has implemented Netsurion, a provider of cloud-managed IT security services, as its preferred managed firewall solution. The remotely hosted platform is designed to improve security across its chain of nearly 6,500 Dairy Queen stores and corporate locations.
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More than half (52%) of businesses believe that a cyber-attacker is currently on their network, or has been in the past year, according to the Global Advanced Threat Landscape Survey from CyberArk.
Additionally, more than two thirds (68%) of organizations said the NSA breach (37%) and major retail breaches at Target and Neiman Marcus (31%) impacted their security strategies the most in the past year. While the NSA breach was an inside attack and the retail breaches were from external sources, both events occurred due to the theft and exploitation of “privileged accounts,” which are employee credentials used to gain access to systems.
Continue reading “Retail, NSA Breaches Influence Security Strategies”