MarkMonitor Research Shows How Online Scammers Are Using the Financial Crisis to Prey on Consumer Trust in Leading Brands

Latest Brandjacking Index Examines How Fraudsters Abuse Financial Brands

SAN FRANCISCO, June 29 2009 – MarkMonitor®, the global leader in enterprise brand protection, today released the company’s latest Brandjacking Index® that studies how fraudsters are abusing major financial brand names and topical subjects like refinancing or unemployment to lure unsuspecting consumers to questionable websites. Examining four leading financial brands, the research indicates opportunistic fraudsters are quick to target citizens looking for ways to get back on their feet from financial challenges and the housing market bust.

“Scammers are preying upon consumer hardship, demonstrating incredible creativity in combining technology, social engineering techniques and current events,” said Frederick Felman, chief marketing officer at MarkMonitor. “In this digital age, as the Internet pervades business and leisure, scam artists and fraudsters are quick to profit at the expense of trusted brands across a wide spectrum of industries.”

For this Brandjacking Index, MarkMonitor chose four top U.S. and international bank brands to monitor for scams focusing on terms such as foreclosure, mortgage, refinance and unemployed. MarkMonitor sifted through 134 million public domain records and searched billions of Web pages and spam email messages during the study period.

Research from the sample of financial brands shows profound levels of brand abuse, most notably through phishing and suspected domain squatting. More than 7,300 cybersquatted domains were identified targeting the four financial brands in the study. Fraudsters registered domains that combined those financial brands with the focus terms at the rate of more than one domain per day between September 2008 and April 2009. Phishing attacks against the four financial brands numbered 10,000, representing a 36 percent increase in Q1 2009 from the previous quarter.

Some of the highlighted findings in this report are:
Opportunistic abuse exploits economic hardship

• Morethan 7,300 domains exploited the four financial brands in the study,with 16 percent of the domains registered since September 2008
• 24percent of these cybersquatted domains registered since September 2008used the focus terms – foreclosure, mortgage, refinance and unemployed– translating to a registration rate of more than one cybersquatteddomain per day exploiting the focus terms
• Domains registered since September 2008 were 50 percent more likely to use the focus terms than domains registered earlier
• 52percent of the domains identified in the study did not encrypt customerdata, putting consumers’ personal identity information at risk

Profound levels of phish attacks target a wide variety of companies  and industries

• A record 502 organizations were phished in Q1 2009, an increase of 24 percent from Q1 2008
• 93 organizations were phished for the first time in Q1 2009; 82 percent were financial brands
• Whilefinancial services remain a popular target, payment service providerswere the most phished category, at 42 percent of total phish attacks
• Socialmedia is one of the fastest-growing target category for phishers, withattacks increasing 241% against social media companies between Q1 2008and Q1 2009

Methodology

TheBrandjacking Index is an independent report produced by MarkMonitorthat tracks and analyzes online abuses of leading brands. Thecornerstone of the report is the volume of public data analyzed byMarkMonitor using the company’s proprietary algorithms – no customerdata or proprietary customer information is used to create theBrandjacking Index. During the study period of January through April,2009, MarkMonitor searched approximately 134 million public recordsdaily for brand abuse in domain data as well as Internet feeds fromleading international Internet Service Providers (ISPs), emailproviders and other alliance partners.

About MarkMonitor

MarkMonitor,the global leader in enterprise brand protection, offers comprehensivesolutions and services that safeguard brands, reputation and revenuefrom online risks. With end-to-end solutions that address the growingthreats of online fraud, brand abuse and unauthorized channels,MarkMonitor enables a secure Internet for businesses and theircustomers. The company’s exclusive access to data combined with itspatented real-time prevention, detection and response capabilitiesprovide wide-ranging protection to the ever-changing online risks facedby brands today. For more information, visit www.markmonitor.com.

Related articles by Zemanta

• Online Banking's Innate Security Flaws (information-security-resources.com)
• Nothing Phishy About PCI 2.0 Certified "Card Present 2FA" (pindebit.blogspot.com)
• BofA Targeted by Malicious Code Phishing Attack (pindebit.blogspot.com)
• Acculynk Accel/Exchange Announce PIN Debit Pilot (pindebit.blogspot.com)
• Over 3 Billion P2P Transactions Occurred in 2008 - TowerGroup (pindebit.blogspot.com)