Tag: identity theft

Jun 10
2020

Fraud Detection with Machine Learning For e-Commerce and Retailers

Hacking, Cyber, Blackandwhite, Crime, Security

There is interesting research in Forbes’ recent article named “How E-Commerce’s Explosive Growth Is Attracting Fraud”. According to the statistics, e-commerce retail sales achieve 209% year-over-year revenue growth. It is expected that this indicator will grow, which means it will seduce fraudsters even more. This is a completely obvious pattern – big money always means a lot of attraction for attackers.

Is there a way to protect your business from these risks? We are sure there are. In this article, we will tell you how eCommerce fraud prevention and detection system work being powered by machine learning and artificial intelligence.

What Is Fraud in e-Commerce?

E-commerce and retail fraud mean any activity aimed at deceiving sellers or buyers in order to seize goods or money. In the e-commerce industry, all fraudulent transactions occur online. As for retail, fraud at the physical point of sale of goods is also possible. AI and ML solutions to encode expertise for detecting fraud in eCommerce and retail can handle both tasks.

What Are the Three Types of Fraud?

In fact, it is possible to identify more types of fraud depending on the nature of the crime, the level of damage, tools for committing fraud, and even unrealized criminal plans. Basically, it is possible to distinguish three main types of fraud.

Mobile Fraud

This is a fairly logical phenomenon – the more users began to use mobile phones for instant transactions, the more scammers thought that these devices might have hidden potential. The infographic below illustrates the current situation with mobile fraud.

Moreover, this is the case when businesses and individuals are equally at risk. Very often, mobile fraud becomes a way of illegally making purchases on behalf of another person.

Identity Theft

Identity Theft is the second type of fraud that is very popular. Who do you think are the most frequent victims of this type of fraud? These are Millennials, the most active users of social networks and the most solvent category of the population at the same time.

The thing is that social networks allow you to make a portrait of a person and collect all the necessary data very easily. It’s not even necessary to hack anything. And comprehensive personal data also easily provides access to e-mail, and other applications, including financial ones.

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Nov 7
2014

Privacy, Security and HIPAA Compliance: One of These Things is Not Like the Others

Stephen Cobb

Guest post by Stephen Cobb, senior security researcher, ESET.

HIPAA’s privacy and security rules are often labeled as being burdensome and restrictive. The rules are increasingly criticized as ineffective and people wonder how an organization can be HIPAA compliant and still suffer a breach of protected health information.

A medical approach to answering that question might be to think about infection prevention and control. Infection control protocols exist to prevent the spread of infectious diseases. However, a patient can get infected at a hospital or clinic that has such protocols in place. The reasons for such anomalies include lapses in conformance to the protocol and inappropriate protocol relative to potential infection vectors.

Such language maps closely to the demands of healthcare data protection, which could be described as the prevention and control of unauthorized access to protected health information. Clearly there is a need for healthcare organizations and their employees to fully comply with “policies and procedures that are appropriate to the threats.” Getting people to comply requires organizational commitment from the top down, backed by the adequate equipping and educating of staff at all levels.

But what if those policies and procedures are not appropriate to the threats? What if the infection vectors are different from those you trained to defend against, or the threat agent more virulent than you supposed? That’s where a lot of health data security breaches occur, in that gap between established practices and emerging threats. The difference between being “HIPAA compliant” and “secure” often comes down to underestimating threats. Continue Reading

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