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As credit card scams rise, fraud prevention must become priority for businesses

Jan 30, 2013 Dave King

As credit card scams rise, fraud prevention must become priority for businesses

In October, The New York Times reported that 63 Barnes & Noble chains across the United States had suffered from sophisticated credit card attacks, after hackers were able to steal customers' PIN?s from registers at each store.

"This is no small undertaking," said Edward Schwartz, chief security officer at RSA, told the news source. "An attack of this type involves many different phases of reconnaissance and multiple levels of exploitation."

According to the article, security analysts believe this type of attack likely involved multiple layers and participants - possibly even an employee at Barnes & Noble. Tom Kellerman, vice president of cybersecurity firm Trend Micro, told the source that what's especially concerning is that encryption codes no longer pose much of an obstacle to sophisticated scammers.

With the rise of internet and mobile payment strategies, companies need to focus more than ever on fraud prevention, as hackers continue to look for ways to exploit these new technologies.

For example, a recent study by Europol found that scammers were able to steal more than $2 billion this past year through credit card fraud. Fraudulent online purchases accounted for more than $1.2 billion of that total.

"Companies are adopting new technologies much more quickly than they have previously, perhaps without fully understanding the overall risk factors that such new technologies may pose to the organization," said Irfan Saif, principal of Deloitte & Touche.

Saif said that consumerism is driving companies toward rapidly implementing new technologies and mobile strategies. Although a recent Deloitte survey found that 74 percent of executives rated security breaches as one of their top concerns, 88 percent did not believe their own companies were in any danger.