Connect with us

Economics

Arkose Labs New Intelligence Report Reveals Mounting Economic Gains for Fraudsters, with “Wages” Spiking to $600,000 a month

Arkose Labs New Intelligence Report Reveals Mounting Economic Gains for Fraudsters, with “Wages” Spiking to $600,000 a month
PR Newswire
SAN MATEO, Calif., May 18, 2022

Rookie fraudsters make approximately $20,000 a month, as ‘Cyber Kingpin’ wages …

Published

on

Arkose Labs New Intelligence Report Reveals Mounting Economic Gains for Fraudsters, with "Wages" Spiking to $600,000 a month

PR Newswire

  • Rookie fraudsters make approximately $20,000 a month, as 'Cyber Kingpin' wages reach more than $600,000 a month
  • Number of active fraudsters has increased tenfold since 2019
  • Nearly 33% of cybercrime losses come from online consumer account-based fraud attacks
  • Fintech, gaming, technology, and ecommerce companies are hyper-targeted industries where fraudsters have the potential to earn the most money
  • Top targeted companies can see up to 35% of traffic coming from human fraudsters

SAN MATEO, Calif., May 18, 2022 /PRNewswire/ -- Arkose Labs, the global leader in fraud deterrence and account security, today released new insights, shining a light into the corners of the expanding global fraud economy.  Data in the Q2 2022 State of Fraud & Account Security report shows specific attack attempts skyrocketed, fraud "employment" increased tenfold, and fraud returns for the "Master Fraudster" can be 8X higher than salaries for CEOs leading legitimate companies. .

75% of attacks aimed at fintech companies were zeroed in on consumer logins.

"The ROI for cyberattacks is greater than ever, so fraudsters are willing to invest more energy in the right mix of tools and resources to be successful and turn profits," said Kevin Gosschalk, founder and CEO of Arkose Labs. "Our intelligence shows that bot attacks are mimicking human behavior enough to evade security measures and leading to new monetization techniques. Evolving bot and human-led attacks increasingly target fintech, gaming, and technology companies. Simple automation is a thing of the past as attackers have proven to be quick learners and continue to find ways to sabotage businesses to increase their personal wealth."

New Arkose Labs intelligence reveals key findings about hot fraud attack trends, which increase the likelihood of growing profits for fraudsters:

  • Profit-Driven Attacks Threaten Trust and Account Security: The high monetization potential of account compromises and fake accounts makes phishing and credential stuffing the attack patterns to watch. Automated account takeovers (ATOs) were 30% higher in Q1 compared to the two years prior. Insights from the Arkose Labs Global Network™ show that 1 in 4 accounts created in the first quarter of 2022 were fake, leading to promotion and free trial abuse.

  • Bots are Intelligent & Efficient: The first quarter saw consistently higher bot-driven attacks than the average across all of 2021, driven by large-scale scraping and credential stuffing attempts. Scraping attacks increased by 60% in Q1, while 4% of all traffic was a credential stuffing attempt. Bot attacks have three times more complex attack signatures today than in years prior, creating greater detection complexity for businesses.

  • Low-and-Slow Human-led Attacks Prevail: Many bot threats are being augmented with human-led efforts. These attacks are far more persistent and targeted, and go to greater lengths to attempt to stay under the radar.

  • Industry-Specific Attacks on the Rise: While every industry saw massive attacks, each industry was targeted in different ways and by varying attack patterns.
  •  
    • Fintechs saw 2.5 times more attacks in the first quarter compared to the two years prior. And 75% of attacks aimed at fintech companies were zeroed in on consumer logins.
    • Gaming companies experienced 260% more attacks, including a 85% increase in fake account registrations, compared to Q4 2021.
    • Technology companies were most impacted by fake accounts, attempting to monetize promotions and free trials.
    • eCommerce/retail companies saw 30% more attacks in Q1 than two years prior and experienced a 65% increase in fake accounts over Q4 2021, primarily targeting coupon abuse. Account takeover attempts equal 80% of attacks aimed at eCommerce/retail companies.
    • Travel companies experienced an upsurge in scraping attacks aimed at obtaining inventory information, indicating corporate espionage in this sector is expanding.
  • Fraud in the Metaverse: Attacks on metaverse companies increased 40% since Q4 2021. Unlike automated bot attacks, fraudsters put greater investment into metaverse attacks, requiring more human capital to execute phishing, spam, and scams effectively. Targeted human-led attacks, which require a higher level of sophistication, make up nearly all attacks against metaverse companies. Metaverse companies experience 68% more low-and-slow human-led attacks than non-metaverse companies.

  • Fraudsters Based in Asia Dominate Cyberattacks: 40% of attacks worldwide came from Asia, compared to 1 in 3 attacks originating in Europe and 1 in 5 attacks originating in North America. Within Asia, attacks from China and India increased 70% compared to Q4 2021. The top 5 attacking countries - US, India, China, Great Britain, Vietnam - contributed to over 60% of all actions in Q1.

Nearly 33% of Cybercrime Losses Come from Online Consumer Account-Based Fraud

Cybercrime is big business. Cybersecurity Ventures estimates that the global cybercrime industry will reach more than $10 trillion by 2025.  In the U.S. the FBI Internet Crime Complaint Center calculated cybercrime losses equaled $6.9 billion in 2021, which represents the latest available data. Online consumer account-based fraud attacks contribute to that figure. In fact, consumer account-based fraud types reported to the FBI total more than $2 Billion, or 29% of the total cybercrime losses declared.1

Table 1:

Account-based fraud attacks tracked in the FBI Internet Crime Report

Confidence Fraud/Romance

$956,039,740

Spoofing

$82,169,806

Personal data breach

$517,021,289

Tech support

$347,657,432

Credit card fraud

$172,998,385

Phishing/vishing/smishing/pharming

$44,213,707

Denial of service:

$217,981

Consumers' online accounts are a major theater of action in cyber warfare because they tend to be easy entry points for fraudsters due to legitimate credentials (usernames and passwords) being readily available for sale on Dark Web networks.

That's a field day for individual fraudsters. Arkose Labs Chief Criminal Officer, Brett Johnson, notes he has observed people who fall into the "Rookie Fraudster" category earning wages of $20,000 a month by conducting first-party refund fraud, while people who fall into the "Master Fraudster" category can earn up to $600,000 a month, or $7.2 million annually. According to Salary.com, the median CEO annual salary in the U.S. is a little more than $790,000. In comparison, Master Fraudster "wages" are 800% more than legitimate business leaders.

Fraud Employment Outpaces Cybersecurity Jobs

Cybersecurity may be the only industry that has had sustained zero unemployment for years. According to the (ISC)2 Cybersecurity Workforce Study 2021, 4.19 million people are employed in the cybersecurity industry globally – impressive but not enough, as 2.72 million unfilled jobs exist. The labor shortage in cybersecurity continues to put companies at risk, especially because the number of people entering cybercrime as a career is growing faster than companies can hire and train cybersecurity employees. 

Not only are fraudster "wages" increasing, as demonstrated in the above section, but job growth among fraudsters is rampant. According to Johnson, the number of career fraudsters has increased tenfold since 2019, more than outnumbering the 4.19 million cybersecurity workforce.

Table 2:

Fraud Job Growth Based on Number of Members Active in Dark-Web Communities

Shadowcrew 2014

4,000 members

Alphabay 2017

240,000 members

Blackmarket 2019

1.15 million members

 

Arkose Labs has defined two primary categories of fraudsters, based on extensive observations of dark web communities and behavioral data from the Arkose Labs Global Network™.

Table 3:

Fraudster Categories Defined

Rookie Fraudster

Individuals with little expertise leveraging the fraud ecosystem to make money fast

Uses marketplaces and messaging platforms to purchase bots-as-a-service and execute attacks at scale

Earnings potential: up to $20,000 per month

Master Fraudster

Devise complex, multi-pronged attack strategy, using multiple tools scripted together alongside fraud farm workers

Willing to continually invest in resources and development to bypass defenses

Earnings potential: up to $600,000 per month

 

"Rookie Fraudsters move into the Master Fraudster category due to the vast information sharing of attack techniques on the dark web," said Johnson. "Marketplace and messaging platforms have become popularized in the fraud community where cybercriminals can promote their own personal fraud business, recommend attack tools and techniques, and offer free step-by-step guides for the Rookie Fraudster. With this widespread information sharing, human fraudsters are capable of using bot tools to attack at scale and Rookie Fraudsters uplevel their attack skills much faster."

According to Johnson, the number of active fraudsters has increased 10x since 2019, due in large part because of the "easy money" that could be made from unemployment stimulus programs during the pandemic. "Many Rookie Fraudsters ramped up during the pandemic because of the ROI that could be made."

The platform of cybercrime itself is so sophisticated, that a Rookie Fraduster doesn't need to know anything to come in and be profitable. "They can buy a tutorial for $5 or $10, take a live instruction class that runs anywhere from $300 up to $3,500, which teaches the type of fraud they want to focus on; they can watch YouTube videos to perfect their approach, and they can simply ask questions of other fraudsters in dark-web chat channels," Johnson said.

The great equalizer between the estimated 15 million fraudsters and the 4.19 million cybersecurity workers is technology. For legitimate companies to protect their consumers' online accounts and prevent fraud, requires companies to invest in technology that works.  Today, Arkose Labs provides support for some of the world's most recognized brands and platforms including PayPal, Zilch, Microsoft, Roblox, and Pitney Bowes. Arkose Labs protects industries like fintech, banking, gaming, ecommerce/retail, technology, travel, and social media.

About the Report
The 2022 Q2 State of Fraud & Account Security is based on actual user sessions and attack patterns analyzed by the Arkose Labs Fraud Deterrence Prevention Platform from January through March 2022. These sessions, spanning account registrations, logins, and payments from financial services, ecommerce, travel, social media, gaming, and entertainment, were analyzed in real-time to provide insights into the evolving fraud and risk landscape. The report focuses on attacks from fraud outlets that combine state-of-the-art technology with stolen identity credentials and human efforts. The report also is based on deep, bespoke investigations into dark web communities.

About Arkose Labs
Arkose Labs' mission is to create an online environment where all consumers are protected from malicious activity. Recognized by Gartner as a "Cool Vendor in Fraud and Authentication," the company offers the world's first $1 million credential stuffing warranty. Its AI-powered platform combines powerful risk assessments with dynamic attack response that undermines the ROI behind attacks while improving good user throughput. Headquartered in San Mateo, CA with offices in Brisbane and Sydney, Australia, Tokyo, Japan, San Jose, Costa Rica, and London, UK, the company debuted as the 83rd fastest-growing company in North America on the 2021 Deloitte Fast500 ranking.

Contact
Jean Creech Avent
Global Head of Brand and Communications
Arkose Labs
j.creechavent@arkoselabs.com 
+1 843-986-8229

1 It should be noted that figure is likely higher because it is based on fraud crimes that have been reported to the FBI. Many fraud crimes go unreported to the FBI.

View original content to download multimedia:https://www.prnewswire.com/news-releases/arkose-labs-new-intelligence-report-reveals-mounting-economic-gains-for-fraudsters-with-wages-spiking-to-600-000-a-month-301549777.html

SOURCE Arkose Labs

Read More

Continue Reading

Economics

Expert on Bath & Body Works: ‘an easy double the next three years’

Bath & Body Works Inc (NYSE: BBWI) might have been painful for the shareholders this year, but the road ahead will likely be a rewarding one, says…

Published

on

Bath & Body Works Inc (NYSE: BBWI) might have been painful for the shareholders this year, but the road ahead will likely be a rewarding one, says the Senior Vice President and Portfolio Manager at Westwood Group.

BBWI separated from Victoria’s Secret

The retail chain separated from Victoria’s Secret in 2021, which, as per Lauren Hill, clears the way for a 100% increase in the stock price in the coming years. On CNBC’s “Closing Bell: Overtime”, she said:

[Bath & Body Works] has really strong pricing power. They have 85% of their supply chain in the United States and with the Victoria’s Secret brand now gone, I think it’s a wonderful buy; an easy double the next three years.

Last month, the Columbus-headquartered company reported results for its fiscal first quarter that topped Wall Street expectations.

Bath & Body Works is a reopening play

The stock currently trades at a PE multiple of 6.64. Hill is convinced Bath & Body works is a reopening name and will perform so much better as the world continues to pull out of the pandemic. She noted:

Customers have missed buying their scented products in store and as their social occasion calendars fill up, they are getting back out there and buying more gifts, including Bath & Body Works products.

Hill also dubbed BBWI a great pick amidst the ongoing inflationary pressures because of its reasonably priced products. Shares are down more than 50% versus the start of 2022.

The post Expert on Bath & Body Works: ‘an easy double the next three years’ appeared first on Invezz.

Read More

Continue Reading

Economics

Majority Of C-Suite Execs Thinking Of Quitting, 40% Overwhelmed At Work: Deloitte Survey

Majority Of C-Suite Execs Thinking Of Quitting, 40% Overwhelmed At Work: Deloitte Survey

Authored by Naveen Anthrapully via The Epoch Times,

A…

Published

on

Majority Of C-Suite Execs Thinking Of Quitting, 40% Overwhelmed At Work: Deloitte Survey

Authored by Naveen Anthrapully via The Epoch Times,

A majority of C-suite executives are considering leaving their jobs, according to a Deloitte survey of 2,100 employees and C-level executives from the United States, Canada, the UK, and Australia.

Almost 70 percent of executives admitted that they are seriously thinking of quitting their jobs for a better opportunity that supports their well-being, according to the survey report published on June 22. Over three-quarters of executives said that the COVID-19 pandemic had negatively affected their well-being.

Roughly one in three employees and C-suite executives admitted to constantly struggling with poor mental health and fatigue. While 41 percent of executives “always” or “often” felt stressed, 40 percent were overwhelmed, 36 percent were exhausted, 30 percent felt lonely, and 26 percent were depressed.

“Most employees (83 percent) and executives (74 percent) say they’re facing obstacles when it comes to achieving their well-being goals—and these are largely tied to their job,” the report says. “In fact, the top two hurdles that people cited were a heavy workload or stressful job (30 percent), and not having enough time because of long work hours (27 percent).”

While 70 percent of C-suite execs admitted to considering quitting, this number was at only 57 percent among other employees. The report speculated that a reason for such a wide gap might be the fact that top-level executives are often in a “stronger financial position,” due to which they can afford to seek new career opportunities.

Interestingly, while only 56 percent of employees think their company executives care about their well-being, a much higher 91 percent of C-suite administrators were of the opinion that their employees believe their leaders took care of them. The report called this a “notable gap.”

Resignation Rates

The Deloitte report comes amid a debate about resignation rates in the U.S. workforce. Over 4.4 million Americans quit their jobs in April, with job openings hitting 11.9 million, according to the U.S. Department of Labor. In the period from January 2021 to February 2022, almost 57 million Americans left their jobs.

Though some are terming it the “Great Resignation,” giving it a negative connotation, the implication is not entirely true since most of those who quit jobs did so for other opportunities. In the same 14 months, almost 89 million people were hired. There are almost two jobs open for every unemployed person in the United States, according to MarketWatch.

In an Economic Letter from the Federal Reserve Bank of San Francisco published in April, economics professor Bart Hobijn points out that high waves of resignations were common during rapid economic recoveries in the postwar period prior to 2000.

“The quits waves in manufacturing in 1948, 1951, 1953, 1966, 1969, and 1973 are of the same order of magnitude as the current wave,” he wrote. “All of these waves coincide with periods when payroll employment grew very fast, both in the manufacturing sector and the total nonfarm sector.”

Tyler Durden Sat, 06/25/2022 - 20:30

Read More

Continue Reading

Spread & Containment

Optimism Slowly Returns To The Tourism Sector

Optimism Slowly Returns To The Tourism Sector

Coming off the worst year in tourism history, 2021 wasn’t much of an improvement, as travel…

Published

on

Optimism Slowly Returns To The Tourism Sector

Coming off the worst year in tourism history, 2021 wasn't much of an improvement, as travel remained subdued in the face of the persistent threat posed by Covid-19.

According to the United Nations World Tourism Organization (UNWTO), export revenues from tourism (including passenger transport receipts) remained more than $1 trillion below pre-pandemic levels in 2021, marking the second trillion-dollar loss for the tourism industry in as many years.

As Statista's Felix Richter details below, while the brief rebound in the summer months of 2020 had fueled hopes of a quick recovery for the tourism sector, those hopes were dashed with each subsequent wave of the pandemic.

And despite a record-breaking global vaccine rollout, travel experts struggled to stay optimistic in 2021, as governments kept many restrictions in place in their effort to curb the spread of new, potentially more dangerous variants of the coronavirus.

Halfway through 2022, optimism has returned to the industry, however, as travel demand is ticking up in many regions.

You will find more infographics at Statista

According to UNWTO's latest Tourism Barometer, industry experts are now considerably more confident than they were at the beginning of the year, with 48 percent of expert panel participants expecting a full recovery of the tourism sector in 2023, up from just 32 percent in January. 44 percent of surveyed industry insiders still think it'll take until 2024 or longer for tourism to return to pre-pandemic levels, another notable improvement from 64 percent in January.

Tyler Durden Sat, 06/25/2022 - 21:00

Read More

Continue Reading

Trending