Common Point of Purchase Compromises: The Evolution of the Fraudster
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Overview: World-wide credit card fraud losses continue to rise at an alarming rate. Counterfeit activity resulting from cards compromised at either ATM or POS, continues to damage consumer confidence and industry revenues. Major data compromise incidents, potentially resulting in significant fraud losses and which place large numbers of accounts at risk, are becoming more commonplace.
Despite the industry’s repeated attempts to build more secure systems and better analytical models, fraudsters continue to evolve and adapt. Moving from simple opportunistic theft and deception, fraudsters now employ sophisticated skimming devices, social engineering and mass database compromises to ply their trade. Systems built to combat fraud on a per transaction basis are failing to see the wider network of cards being compromised on a daily basis.
The answer to combating these new forms of card fraud is to detect and build the underlying common purchase point (CPP) networks. Once a compromised CPP can be found, be it at an ATM, POS or a merchant or processor’s database, then proactive steps can be taken to prevent further fraud losses.
This whitepaper by Detica NetReveal® discusses how by combining a networked approach, test point identification and a per-card intervention strategy in addition to other steps an issuer can dramatically reduce third–party fraud.