“Identity is the new global currency, which explains why fraudsters are prioritizing valuable resources to test and validate identities across disparate industries,” said Vanita Pandey, VP of Strategy at Arkose Labs. “As we enter the next stage of the post-breach era, when identities have been compromised en masse and fraudsters have access to behavioral information on consumers through hacked accounts, it has never been more difficult to validate digital identity. Intelligent step-up challenges can be the missing link to clarify whether an online identity has been corrupted by fraudster or is being exploited by organized sweatshop activity.”
Arkose Labs observed a 30-percent increase in account takeover attacks in the retail industry compared to the previous quarter. Account takeover attacks are a precursor to payment fraud, as most ecommerce companies encourage consumers to create accounts and store payment details to remove friction in the path-to-purchase.