10:32 AM
Connect Directly

Companies Boosting Fraud Prevention In Wake of Data Breaches

The AFP’s annual payments fraud report found a significant increase in card fraud and that companies are investing more in anti-fraud measures.

With card payments fraud on the rise, many organizations are now adopting additional security measures to protect themselves, according to the 2014 AFP Payments Fraud and Control Survey sponsored by J.P. Morgan. Although the percentage of organizations in the survey that experienced some type of fraud remained steady at 60% from last year’s survey, more of that fraud was occurring through debit and credit cards, with 43% of the organizations victimized by fraudsters reporting card fraud, up form 29% last year.

And last year’s data breaches, which are likely to lead to more card fraud, have spurred organizations to take action: 63% of the respondents that they have added new security measures since last year’s data breaches or are planning to do so.

The majority of respondents in the survey (72%) expected that switching to EMV would have a positive impact on the growing threat of card fraud, with 20% expecting a major reduction as a result of EMV.

[For More On Last Year’s Retailer Data Breaches: Breaking Down the Impact of the Target Breach]

Check fraud is still the most common type of fraud experienced by organizations, the survey of 449 financial professionals working in 15 different industry verticals found. Of those organizations that had a fraud event, 82% said they had experienced check fraud. The most common type of check fraud, cited by 62% of those that had been subject to check fraud, was “counterfeiting by altering the MICR line on the check.”

The most common fraud prevention methods being used by organizations in the survey were conducting daily reconciliations of their payments (74%) and auditing and strengthening internal processes (73%).

Jonathan Camhi has been an associate editor with Bank Systems & Technology since 2012. He previously worked as a freelance journalist in New York City covering politics, health and immigration, and has a master's degree from the City University of New York's Graduate School ... View Full Bio

Comment  | 
Print  | 
More Insights
Threaded  |  Newest First  |  Oldest First
Register for Dark Reading Newsletters
White Papers
Cartoon Contest
Write a Caption, Win a Starbucks Card! Click Here
Latest Comment: Janice, I think I've got a message from the code father!
Current Issue
Security Operations and IT Operations: Finding the Path to Collaboration
A wide gulf has emerged between SOC and NOC teams that's keeping both of them from assuring the confidentiality, integrity, and availability of IT systems. Here's how experts think it should be bridged.
Flash Poll
New Best Practices for Secure App Development
New Best Practices for Secure App Development
The transition from DevOps to SecDevOps is combining with the move toward cloud computing to create new challenges - and new opportunities - for the information security team. Download this report, to learn about the new best practices for secure application development.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
Published: 2017-05-09
NScript in mpengine in Microsoft Malware Protection Engine with Engine Version before 1.1.13704.0, as used in Windows Defender and other products, allows remote attackers to execute arbitrary code or cause a denial of service (type confusion and application crash) via crafted JavaScript code within ...

Published: 2017-05-08
unixsocket.c in lxterminal through 0.3.0 insecurely uses /tmp for a socket file, allowing a local user to cause a denial of service (preventing terminal launch), or possibly have other impact (bypassing terminal access control).

Published: 2017-05-08
A privilege escalation vulnerability in Brocade Fibre Channel SAN products running Brocade Fabric OS (FOS) releases earlier than v7.4.1d and v8.0.1b could allow an authenticated attacker to elevate the privileges of user accounts accessing the system via command line interface. With affected version...

Published: 2017-05-08
Improper checks for unusual or exceptional conditions in Brocade NetIron 05.8.00 and later releases up to and including 06.1.00, when the Management Module is continuously scanned on port 22, may allow attackers to cause a denial of service (crash and reload) of the management module.

Published: 2017-05-08
Nextcloud Server before 11.0.3 is vulnerable to an inadequate escaping leading to a XSS vulnerability in the search module. To be exploitable a user has to write or paste malicious content into the search dialogue.

Dark Reading Radio
Archived Dark Reading Radio
In past years, security researchers have discovered ways to hack cars, medical devices, automated teller machines, and many other targets. Dark Reading Executive Editor Kelly Jackson Higgins hosts researcher Samy Kamkar and Levi Gundert, vice president of threat intelligence at Recorded Future, to discuss some of 2016's most unusual and creative hacks by white hats, and what these new vulnerabilities might mean for the coming year.