Cyber Criminals Double Their Account Creation Rate

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At the beginning of 2015, account creation used for fraudulent purposes was as low as 28% of total accounts made. By the middle of summer, those rates doubled. Out of 500 million new accounts created online through various websites and apps, 57% of them were reported by a security company as high risk.

Simply stealing credit card numbers is not enough for cyber criminals anymore. Now, they are creating entirely new accounts under others’ names in order to gain the full credit limit.

Multiple Fraud Acts

Director of Customer Success for NuData Security, Ryan Wilk, explains how criminals are searching for other methods of online fraud. Many do much more than take a credit card number or create a false account. They are actually performing multiple fraud acts in someone’s name. Many search for online access to multiple accounts, where they can steal information from several different cards. Some are even using people’s frequent flier miles for themselves.

A popular trend occurring in the cyber criminal world is creating a fake account for the purpose of posting negative reviews. Not only is this hindering the reputation of the company, but it is also causing issues for the person that people see posting such vulgar and offensive commentary. Nearly half of the fraudulent accounts created this summer were for the purpose of posting such reviews, particularly on ratings websites, like Yelp.

Criminals Completing Credit Checks

When hackers steal credit card information and additional details about those who own them, they can easily find out previous addresses, names, and social security numbers. This information allows them to go online and receive credit reports. These reports let criminals know which people’s names are best to open accounts under.

If someone has a negative report, the criminal will be quick to find a new name to use. A report showing a positive payment history and credit score can be used to their advantage, since they are more likely to get larger credit limits when opening a new account under that name. This is just another reason to check your credit report often for anything that looks suspicious or any transactions and accounts that are unknown to you. If you see anything out of the ordinary, it might be smart to contact a reputable credit repair service company to talk about your options.

How They Stay Hidden

Criminals that simply steal credit cards are often found out fast. When they make a purchase, the card owner usually notices pretty quickly and will cancel the card so no further charges can be made. With new account creation, it is easier to stay unnoticed. They may be using someone else’s name, but they have a separate email that the information comes to. No card statements will be sent to the real person because a separate account has been created that they are unaware of, and unable to access. This can allow cyber criminals to use up an account in its entirety before it’s ever found out.

User Behavioral Analytics

While the large percent of fraud accounts seems terrifying, especially to businesses looking to keep their customers’ information private, there is a method to help stop this phenomenon from happening. User behavioral analytics can be put in place to help companies determine whether a customer would actually be making those purchases. If a criminal steals credit card information for a particular store, for example, and suddenly purchases a high-priced item, the store might recognize that it is a very different price amount than that customer usually spends.

With an analytics program in place, customer data and purchasing habits will be tracked to better keep an eye on behavior and traits. When suspicious activity is noticed, they will contact the customer right away to determine if the purchase was indeed made by them.
Many no longer have to worry about their credit cards being stolen. Instead, people must now be on the lookout for their personal details being used for new accounts and credit lines.

Account creation is on the rise, so individuals must be more careful than ever with the information they give out, and ensure it remains personal as it is intended.

Veronica Davis