Card-Not-Present Fraud in China Set to Increase Dramatically

The Chinese online payment market is predicted to increase dramatically and so is the card-not-present (CNP) fraud. According to Retail Decisions and Chinabank Payment, the online payment market will total $78.7 billion, while by 2012, estimates suggest the market will total $244 billion. If the past six months is any indication then China will be in for a rough ride. For example, in the past six months there has already been a 60 percent growth in CNP fraud for China’s airline industry. Chinese airlines and other industries must adopt more rules and sophisticated fraud detection tools if they hope to battle this increasingly prevalent problem.

Is China Serious about Cybercrime

Domestically

As hacking hits home, China has vowed to fight cybercrime by making examples out of a few cyber criminals but is it enough? China’s antiquated cybercrime criminal code has recently made advances to help address the burgeoning problem that has started to affect small to large domestic businesses. In the past few years, Chinese hackers have started to demand money from small Chinese businesses or else… Typically, the hackers will initiate a DDoS attack against a business and then demand ransom to restore the system back to health. As a result, China has shown that they are putting forth some effort to combat this growing cyber crime problem…

Internationally

China has been called by experts, “The world’s malware factory” and for good reason. The country has developed into a major source of online attacks and zero-day attacks, which focus on unknown software vulnerabilities. In another article, “In China, $700 puts a Spammer in Business”, a valuable tool for spammers and a big problem for security professionals around the world is called bullet proof hosting. Usually, a web hosting providers will shut down a web site quickly, if large amounts of bulk emails are sent out and directing people to your site. However, with bulletproof hosting spammers don’t have to be concerned about being shut down because of spam complaints. The Chinese registers simply ignore the take-down requests, which cause a grey area for international cooperation. It should be noted that there are several major bullet proofing servers around the world but the vast majority are located in China. If the Chinese are truly serious about combating cybercrime they must address all aspects of internet security. It is true that actions speak louder than words…

Supply Chain Attack Targets Chip and PIN

What was once regarded as the final solution to credit card and debit fraud has become a valuable lesson learned in the creativity, resources and capability for organized fraudsters to overcome fraud barriers. This is not another article talking about the shift in fraud from card present carding to cross border eCommerce fraud. According to US National Counter Intelligence, hundreds of chip and pin machines in stores and supermarkets across Europe have been rigged by fraudsters to send sensitive information overseas to fraudsters. The doctored machines were highly sophisticated and believed to have been infected when being built in China, before they left the production line. Security experts stated the scope of the crime was once only believed to be executed by a nation state’s intelligence service. What some may still regard as a full-proof system is anything but…