Online Content Abuse Increases 109 Percent, Fueling Fraud Supply ChainJuly 8, 2020
The Fraud Supply Chain
This type of supply chain model makes content abuse an ideal vector for committing financial fraud.
Content Fraud in Action
The identification and process of the Bargain Bair fraud ring
SAN FRANCISCO, July 08, 2020 (GLOBE NEWSWIRE) — Sift, the leader in Digital Trust & Safety, today released its Q2 2020 Digital Trust & Safety Index, which focuses on content abuse and the fraud economy. Derived from Sift’s global network of 34,000 sites and apps, as well as a survey of over 1,000 consumers conducted in June 2020, the research details how content abuse is a critical part of the fraud supply chain, the interconnected ecosystem of fraud. One of the most jarring findings includes the discovery of a fraud ring based in Russia where fraudsters executed a card-testing scheme through fake listings on an e-commerce marketplace.
Counterfeit content has played a role in e-commerce for as long as digital businesses have existed. Scams, spam, fake reviews, and misinformation have evolved in tandem with online shopping, discussion forums, and social networks. The Q2 Digital Trust & Safety Index demonstrates that content abuse has surged in 2020 in particular, with attempted scam and spam postings increasing 109% between January and May 2020 year-over-year. This increase is likely connected to the global disruption caused by the coronavirus as fraudsters have used content to deceive and exploit consumers on e-commerce sites and online communities.
Introducing Fraud Supply Chain
The report outlines how content abuse is not merely a standalone threat but a type of cybercriminal behavior that acts as both a springboard for, and a bridge between, account takeover and payment fraud, contributing to what Sift calls the fraud supply chain.
“Fraud doesn’t happen in a vacuum,” said Jason Tan, CEO of Sift. “Our latest report illustrates how cybercriminals use different attack vectors to steal from consumers and businesses, often through more complex ways than merely buying stolen credit cards to make large purchases. Merchants must adopt a Digital Trust & Safety strategy to protect across the entire user journey and combat the fraud supply chain, which will in turn help them protect and grow revenue.”
Uncovering A Card-Testing Fraud Ring
One of the more covert ways content abuse fits into the fraud supply chain involves card testing, which takes place after login information, gift card details, or payment data has been stolen or bought. In fact, Sift’s Data Science team identified precisely this type of operation in early June 2020.
A group of 15 fraudsters in Russia with identical IP addresses (a…