Fraud & Identity Fraud & Identity


Fraud & Identity Featured Article

June 07, 2017

iconectiv Whitepaper Examines Account Takeover Fraud

Recently, iconectiv issued a whitepaper that discussed many common points of mobile device fraud. With a rapidly-growing slate of uses for our mobile devices, the potential for fraud to step in and do significant damage to our everyday lives grows with it. Account takeover fraud is particularly potentially disastrous, and with some advance warning of what to watch for, we may be better able to protect ourselves against a variety of different kinds of fraud.


With greater uses for mobile devices, and more potential endpoints for fraudsters to access systems and engage in account takeover fraud, it behooves us more than ever to be watchful. Any one point can be the perfect access point for fraud; a 2016 Forbes article cited in the whitepaper pointed out that, once hackers had control of an email account, after taking control of a mobile phone number, it took just seven minutes to access and compromise 30 other accounts.

That means a lot of potential damage can be done in the space of minutes, even seconds, and your ability to respond will likely be measured at least in days, so prevention becomes a particular priority.  With account takeover fraud an increasingly prevalent problem—a NuData report noted that account takeover fraud more than doubled in the first quarter of 2015 against the same time in 2014—being able to protect against this is especially important.

Account takeover fraud is done primarily as a means to beat the growing Europay / Mastercard / Visa (EMV) standard, while at the same time allowing access to several points from one weak endpoint. With the difficulty of credit card cloning rising, fraudsters are bypassing the card altogether in a bid to get access to the wider frame of accounts beyond the card itself. Once an account is accessed illicitly, a range of personal details becomes available, and these details can in turn be used for just about everything from simple purchase fraud to mortgage refinancing.

Thus, if we focus on protecting our mobile devices—with the proper background of system updates, virus protection, remote wiping tools and similar issues—we can potentially stop quite a bit of fraud in its tracks. By making mobile devices no longer weak endpoints, we can remove one of the great potential access vectors for fraudsters, and protect ourselves in turn against a variety of fraud possibilities. Since card cloning is now vastly more difficult thanks to EMV operations, protecting the mobile device becomes the best new way to head off a lot of fraud.

Account takeover fraud can be a deeply traumatic affair, but with some advance preparation—and advance warning like that offered in the iconectiv whitepaper—it's easier to protect yourself.




Edited by Alicia Young

Article comments powered by Disqus






Industry Insights

(MobileID) Proactive Fraud Prevention

Interconnect-related fraud such as International Revenue Share Fraud (IRSF) and PBX hacking fraud continue to be a billion dollar problem to the telecom industry.

(Defender Shield) Defense solutions for the modern SMS ecosystem

SMS is a ubiquitous communication method for person-to-person (P2P) text messaging, which has been in use globally for nearly 20 years.

(Defender Shield) Preventing Grey Routes and the Multi-billion dollar Threat

The convenience of mobile messaging has brought communication efficiency to billions of consumers worldwide. As is often the case with widely accepted technologies; however, convenience can provide a vulnerable gateway to fraudulent activity.

Product Documents

Asset Protect

While unlimited or high-volume voice and SMS plans offer great value to subscribers, sometimes fraudsters exploit these plans to avoid paying termination and interconnect fees.

Defender Shield

In a world with ever-increasing Application-to-Person (A2P) messaging needs and competition, improving customer satisfaction and eliminating revenue leakage is key for protecting SMS profits.

MobileID

Accurate and cost-efficient routing of voice calls and SMS is critical. Unfortunately, gathering reliable routing data on ported numbers and keeping up with constant changes in number plans is expensive and time-consuming.

Fraud Solutions

Communications fraud is a $20B annual global problem and growing. Companies are looking for peace of mind so that their business and their customers are protected from the onslaught of technology crime that is damaging their reputations and their balance sheets.