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Fraud Attack Type Distribution 05 EMV 3DS2 Mobile App Transaction Trend 15
Top Phishing Target Countries 06 Global EMV 3DS2 Transaction Volumes Trend 16
Executive Summary
of attacks originating there
• The average value of fraudulent payment transactions in the mobile channel
grew 70% in Q1 2021 from Q4 2020
The OutseerTM Fraud & Payments Report presents an analysis of fraud • In Q1 2021, the average value of fraudulent transaction from mobile was 46%
attack and consumer fraud data collected by the Outseer team in the of the average value of fraudulent transactions made from web browsers
course of work identifying threats for Outseer customers. As such, it
• EU had the most significant increase of EMV 3DS2 transaction volumes from
provides a glimpse into the cyber fraud landscape for consumer-facing Q4 2020 to Q1 and currently 35% of EU 3DS transactions are EMV 3DS2
organizations of all sizes and types.
Trojan Horse
Stealthy malware installed under false pretenses, attempting to
steal personal user information.
56% 17%
Brand Abuse Rogue Mobile Apps
58%
INCREASE IN BRAND ABUSE
ATTACKS IN Q1 2021 FROM
PREVIOUS QUARTER
6% 21%
Trojan Horse Phishing
5% Slovakia
Sweden
Finland
Iceland
Denmark
CANADA
22%
Russian Federation
EMEA
United Kingdom
IRELAND
4%
NORTH
Poland
Belgium
AMERICA
Luxembourg Germany Ukraine
Kazakhstan
FRANCE Switzerland
2%
APAC
Republic of Korea
Gibraltar Lebanon CHINA
UNITED STATES
1%
SPAIN Italy Greece Israel TAIWAN
16%
Czech Republic
10% 2%
Bermuda Qatar Japan
Austria
GREECE INDIA Macau
1%
Cyprus
5%
Haiti Taiwan
Saudia Hong Kong
MEXICO Dominican Republic Slovenia Arabia Myanmar
Puerto Rico
PHILIPPINES
3% Jamaica Barbados
Trinidad and Tobago
Venezuela Nigeria
Kuwait Bangladesh
Vietnam
Philippines
1%
ALL OTHERS United Arab Emirates Thailand Brunei Darussalam
7%
Colombia
LATAM
Singapore
PERU Brazil Pacific Ocean
3%
Indonesia
Peru Mozambique
Chile
2%
Phishing Targets
Argentina SOUTH AFRICA
The same countries targeted in phishing attacks last quarter continued to take the top
16%
New Zealand
spots in Q1. Attacks targeting the US grew by 44% and those targeting Spain grew by
28%. Those with targets in South Africa increased by 11% after a significant jump in Q4
2020. It appears that the large breach announced by Experian in August 2020, affecting
24 million South Africans and almost 800 local businesses, continued to fuel phishing
attacks this quarter. It is worth noting that Peru and Ireland, which joined the top 10
list of targeted countries in 2020, grew significantly, by 94% and 73% respectively.
Although representing only 2% of total phishing attacks, growth of attacks targeting
Taiwan exploded this quarter, from 1 in Q1 2020 to 261 this quarter.
Hosting Countries
2 Germany 7 Malaysia
3 India 8 Spain
5 Russia 10 China
Phishing Hosts
The United States has remained the top hosting country for phishing attacks since 2017, accounting for 74% of ISPs hosting these types
of attacks. This is largely attributable to a handful of large-scale hosting authorities, whose sheer scale can make it easier for fraudulent
activity to go undetected. Germany, consistently in the top three, is in second place this quarter with 5%. For most of the other countries
in the top ten, the percentage hosting phishing attacks is in the low single digits.
41.64%
50 25 25
androidappsapk.co
40 Top Phishing ISPs by Host
Other
Rebrandly Rogue Mobile App Distribution by Store
androidappsapk.co
41.64%
20 apkgk.com
40 Rebrandly 17.47%
18%
Contabo
Contabo 20 15 apkpure.com
apkgk.com
30 18%
30 HostGator/Websitewelcome
17.47%
10
10.01%
apk.plus
20
6.93%
15
HostGator/Websitewelcome apkpure.com
downloadapk.net
17.10%
Go Daddy 5
3.22% 3.22%
2.97% 2.91% 2.84% 2.84% 2.82%
10 9.63%
DigitalOcean apk-dl.com
20 0
7.34%
6.11%
4.66% 4.42%
17.10%
Go Daddy apk.plus
appsonwindows.com
2.47% 2.33% 1.95% 1.91%
CloudFlare 10.01%
0 10
Amazon apkcombo.com
6.93%
10 9.63%
Microsoft DigitalOcean downloadapk.net
windowsphoneapks.com
7.34%
6.11%
5
Bluehost/Unified Layer 3.22% 3.22% apktume.com
4.66% 4.42% 2.97% 2.91% 2.84% 2.84% 2.82%
NameCheap apktume.com
27% 20%
59% 46% 43%
21% 21% 21% 22% 21% 21% 35% 26%
25% 26% 27% 33% 24% 13% 16%
31% 36% 49% 43%
45% 44% 45% 44% 44% 45% 50% 47% 45% 44% 37%
8% 7%
35% 29% 27% 30%
28% 57% 62% 28% 28% 31% 33% 43% 37%
24% 23%
2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Web Mobile Browser Mobile App Web Mobile Browser Mobile App
Similar to what we observed in Q4 2020, mobile browsers and mobile applications accounted for 77% of While 77% of the transactions originated within the mobile channel, only 63% of all fraudulent
overall transactions observed by Outseer during the first quarter of 2021. transactions originated there during Q1, suggesting there may be higher fraud rates for web
transactions during this period.
63%
OF FRAUDULENT
TRANSACTIONS
ORIGINATED WITHIN
THE MOBILE CHANNEL
*Outseer modified its data collection process in Q4; future reports will closely monitor results to understand the impact
on previous results as well as trends going forward.
Outseer Fraud & Payments Report: Q2 2021 10
Consumer Fraud Trends: Q1 2021
Average Credit Card Transaction and Fraud Transaction Values
(E-Commerce, by Region)
$327
$155 The average value of fraudulent transaction in the web channel ($7,367) was
$142
almost 2.2 times the average value of fraudulent transaction in the mobile
channel ($3,368).
Analysis
E-COMMERCE PAYMENT ONLINE BANKING LOGIN ONLINE BANKING PAYMENT
“Device Age” refers to how long the Outseer Platform has “known” or
“trusted” a given device (laptop, smartphone, etc.). “Account Age” refers
to how long the Outseer platform has “known” or “trusted” a given account
(login, etc.). This data demonstrates the importance of accurate device
70.9%
identification to minimize false positives and customer friction during a login 67.4% 66.1%
or transaction event
52.5%
49.8% 12.0
44.2%
E-Commerce
NEW ACCOUNT: Account Age < 1D NEW DEVICE: Account-Device Age < 1D
Online Banking: Payment
TRUSTED ACCOUNT: Account Age >= 90D TRUSTED DEVICE: Account-Device Age >= 90D
Total payment transactions from trusted devices with trusted accounts
decreased from 56.7% in Q4 2020 to 52.5% this quarter. Payment transaction Source: Outseer, January – March 2021
volume from new devices using trusted accounts grew over 30% in Q1 from
Q4 but value of these malicious transactions shrank 43% in Q1.
4,000,000
Analysis
During the first quarter of 2021, Outseer recovered
over 5.5 million unique compromised cards and
3,000,000 card previews from online card stores and fraud
communication channels. Outseer FraudAction™
2,648,241 service discovers CVV2-related data, which is card
data compromised through cyberattacks targeting
2,000,000 online transactions or e-commerce. This type of
data can be exploited in a variety of fraudulent
1,727,622 activities, including “carding,” which refers to using
compromised cards to buy goods both in physical
stores and on e-commerce websites.
1,000,000 1,157,573
0
JANUARY 2021 FEBRUARY 2021 MARCH 2021
The Outseer team believes this decrease is temporary and we anticipate a consistent increase in 3DS
mobile app transactions later this year as more merchants and card issuers migrate from legacy 3DS
v1 to the latest EMV 3DS2, which supports mobile applications.
Browsers App
94% 94%
100%
86%
82%
80%
75%
50%
0%
March 2020 September 2020 January 2021 February 2021 March 2021
16%
14%
35 %
10%
9%
7%
6%
4%
4%
3%
1% 0%
Introducing: Outseer
On June 9, 2021, RSA officially announced the transition
of its Fraud & Risk Intelligence business to a new
standalone company called, Outseer.
Outseer, an RSA company, is the leader in payment authentication and
Digital transformation accelerates
digital commerce
If you think about the last 18 months without a doubt, digital
transformation is reshaping nearly every facet of our lives—
$4.2 Trillion
in e-commerce sales in 2020
– eMarketer1
account monitoring solutions. Our products and solutions have been including how we live, work, connect, and shop online. The
$33 Billion
built on decades of science-driven innovation and domain expertise, pandemic just accelerated these trends amid a seismic shift to
with our identity-based science delivering the highest fraud detection digital channels.
rates with the lowest customer intervention in the industry. Global ecommerce spending reached $4.2 trillion in 2020, a
Powered by the Outseer Global Data Network, the industry’s first growth rate of 28% year over year. Moving forward, opportunities
global consortium of fraud and transaction data, and a powerful for sustainable growth abound. But so do dangers. To succeed, total estimated gross fraud
machine learning engine, our products recognize authentic organizations will need to deliver a superior transaction experience loss by 2023
customers and fraudsters with precision detection. By seeing what with trusted security. – Nilson2
others can’t, we’re able to stop fraudulent transactions before they
50
occur. As we see the critical importance of managing fraud as a
%
shared responsibility, Outseer has developed this publication, the
Outseer Fraud & Payments Report, in order to contribute insights
based on our analyses of fraud attacks and consumer fraud data
collected by the Outseer technology and data science teams.
fraud lossess are in CNP
– Nilson2
As noted in the Outseer Fraud & Payments Report, phishing attacks represented 21% Given the growth opportunities, fraud risks, and rising customer expectations facing card issuers,
of all attacks observed by Outseer in Q1 2021. Fraudsters are still leveraging one of banks and others, the ability to prevent both transaction fraud and friction will be more than just a
the oldest tricks in the book to impersonate legitimate sites in order to harvest user necessity for transformation initiatives. It could be a key differentiator.
credentials, card information and personally identifiable information (PII). Once this data
is obtained, fraudsters use it to execute account takeover attacks. Outseer is committed to help organizations leverage this unpreceded opportunity is a secure and
frictionless manner.
The Outseer Fraud & Payment report also highlighted that 71% of e-commerce
fraudulent transactions in Q1 2021 were originated from known account and new device To learn more about how Outseer can help you grow your business, read the official
which is indicative of the high precent of account takeover attacks. launch release
Account takeover (ATO) attacks have led to more than $16 billion in losses in the US
alone in 2019 and the volume of these attacks grew 72% in 2019 comparing to 2018.5
In the face of this set of risks and rewards, how do you balance risk and user experience
to get to the best business outcome? Outseer can help you do just that!
1. eMarketer, “Worldwide ecommerce will approach $5 trillion this year,” eMarketer, Jan 14, 2021, https://www.emarketer.com/
content/worldwide-ecommerce-will-approach-5-trillion-this-year
2. The Nilson Report, January 2020 (Issue 1167) and December 2020 (Issue 1187).
3. “U.S. Retail Index Study.” IBM, Aug 2020 ©2021 RSA Security LLC or its affiliates. All rights reserved. RSA and the RSA logo are registered
4. eMarketer, “Worldwide ecommerce will approach $5 trillion this year,” eMarketer, Jan 14, 2021, https://www.emarketer.com/ trademarks or trademarks of RSA Security LLC or its affiliates in the United States and other
content/worldwide-ecommerce-will-approach-5-trillion-this-year countries. All other trademarks are the property of their respective owners. RSA believes the
5. Javelin Research: 2020 Identity fraud study: https://www.javelinstrategy.com/coverage-area/2020-identity-fraud- information in this document is accurate. The information is subject to change without notice.
study-genesis-identity-fraud-crisis Published in the USA. 6/21
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