It is interesting to know what happens when data breaches occur. Particularly, see where the stolen data goes after the breach.

After Data Breaches

According to the Identity Theft Resource Center, data breaches have covered over 675 million data records in the US, since 2005. Massive network security breaches have happened both to the US government and universities, retailers, and healthcare providers.

Breached data include addresses, names, credit card numbers, names of local bank branches, social security numbers, phone numbers, and more. Fraudsters sell these records to aggregators, who create cross-references and combine full identities known as “fullz.” This information becomes available on the black market of data.

Having all this information, data thieves can create new bank accounts or use a person’s name to get loans.

The Speed Of A Data Breach

According to a recent report, accounts were established for 1.500 fake employees, and the breached information of these accounts traveled from California to 22 countries and 5 continents within 12 days. The number of views and clicks were 200 and 1.100 correspondingly.

This is the so-called “ripple effect.” Small data breaches seem to be minor losses but they expand faster than ever before.

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Account Takeover or ATO

When it comes to account takeovers, fraudsters don’t create new accounts with stolen credit cards: they attack valid user accounts. ATOs, account takeovers, can be automated, such as scripted attacks, or can be realized with the help of small teams of human operators acting as account holders. Middlemen play an important role in testing the login credentials.

Thanks to behavioral analysis, it becomes apparent that there exist (on average) 3 high-risk logins for each high-risk checkout. The 1st login is for verifying the operation of the account. The 2nd login is for gaining intelligence, and the 3rd login is for committing the actual fraud.

Fraudsters don’t focus on transactions. Instead, they aim at logins. It is critical to protect the login pages of your sites. This way you can stop fraudsters taking control of your account.

Data Protection

Behavioral analytics aims at observed characteristics of who the user is. User behavior analytics focuses on observing and understanding the user’s behavior.

The important questions to answer are the following ones: How did the user behave previously when logging in? Is the user behaving the same way now? Is the user’s behavior repeated? It is important to note that if 1.000 users have the same behavior, this may mean you are dealing with a crime ring.

Breaches both large and small happen almost on a daily basis. The amount of legitimate information available to hackers goes on enlarging, putting accounts at risk. Thus, detailed user behavior can help you fight and beat fraud.

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