Online payment fraud has doubled in the past seven years

Online payment fraud has increased by 137% over the past seven years according to research conducted by SEONa UK-based fraud prevention service.

SEON based its research on data from the Identity Threat Research Center and used it to identify data breaches from online payments.

There’s a lot of data to sift through, but there are a few interesting details. On the one hand, despite an overall decline in data breaches via online payments between 2018 and 2020, the amount between 2020 and 2021 has exploded. This year alone saw a 62% increase in fraud activity, higher than any other point in the seven years measured.

It should also be noted that while 2021 saw the highest number of compromises, it also saw the lowest number of casualties. These years have seen some of the most publicized data breaches in modern history, and companies are now taking customer data privacy seriously. This increased security is likely the reason why the overall impact of these breaches is lower.

The types of attacks are also changing. Although phishing scams remain the most common form of online payment fraud, ransomware is on the rise. Between 2020 and 2021, the number of ransomware attacks alone doubled.

The type of data stolen is also relevant. A lot of information is irrelevant to scammers, but they are looking for crucial data that can harm your credit and overall financial health. Individuals’ full names were the most commonly stolen data, followed by their full social security number and date of birth. Health data breaches are also on the rise, which means medical history is also being stolen.

SEON focuses on data prevention for small businesses, but there are also a number of steps individuals can take to protect their data. For one, using a password manager and creating complex passwords greatly reduces the likelihood of someone gaining access to your account. Managing the data companies collect from you can also help reduce risk.

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