Samport – Financial Armour

Partners with Samport

samport — Mon, 22 Aug 2005 00:00:00 +0200

Samport Payment Services AB and Pago e-Transaction Services GmbH have entered into a partner agreement. Samport will through the agreement offer its customers the use of Pago acquisition services. Samport will also be able to offer additional services through the agreement such as ELV, a direct debit payment method in Germany, Netherlands and Austria.-"It is a natural step in our European expansion, says Mikael Hedlöf, CEO of Samport Payment Services AB. Through this partnership we can offer customers more alternatives which further improve our offer in the market. It is our ambition to add new acquisition partners to increase our competitiveness in the European market." Samport and Pago have integrated the systems and the first customers through the agreement are activated.

For additional information, please contact:
Mikael Hedlöf, CEO, Samport Payment Services AB
Telephone: +46 400 15 401
Mobile: +46 70 283 76 28
Email: mikael.hedlof@samport.com

TJX hack, biggest ever

samport — Fri, 30 Mar 2007 11:55:33 +0200

TJX hack is biggest ever with 45.7 million card numbers stolen. Fraudsters who hacked the computer systems at US retailer TJX managed to steal more than 45.7 million credit and debit card numbers over a period of more than 18 months, making it the biggest breach of personal data ever.

In addition personal data provided in connection with the return of merchandise without receipts by about 451,000 individuals in 2003 was also stolen.

The retailer revealed on 17 January that the computer system it uses to process and store information related to customer transactions had been hacked, potentially exposing millions of customers' credit and debit card numbers, as well as driver's licence information.

In an SEC filing TJX says it first detected the suspect software on 18 December last year but believes its systems were first accessed in July 2005 and on subsequent dates in 2005 and from mid-May 2006 to mid-January 2007, although no customer data was stolen after 18th December.

Hackers placed unauthorised software on TJX's computer network and stole at least 100 files containing data on millions of accounts from systems in Framingham, Massachusetts and Watford in the UK.

These systems are used to process and store transaction information. TJX also believes the technology used by hackers in 2006 could have enabled them to steal card data from the Watford system during the payment process, when data is transmitted to the card issuer without encryption. But even data that was encrypted may have been compromised as TJX believes the hackers may have had access to its decryption tool.

The scale of the TJX breach eclipses the compromise at Cardsystems in 2005 the exposed more than 40 million credit cards to hackers, which was previously the largest known compromise of financial data.

Online fraud hits 200,000 Brits in 2006

samport — Tue, 11 Sep 2007 23:08:55 +0200

Over two hundred thousand cases of online financial fraud were commited in the UK last year - double the amount of real world robberies - according to a study carried out by criminologists at consultancy firm 1871.

The research, commissioned by online data management firm Garlik, estimates that 92,000 cases of online identity fraud were carried out in 2006 - 40% of all the ID crimes committed. Criminals are impersonating victims to obtain money, credit or even better jobs.

TJX Card Fraud Gang Boss Jailed

samport — Fri, 21 Sep 2007 00:00:00 +0200

The leader of a gang which used financial data stolen during the computer security breach at TJX has been sentenced to five years in jail and ordered to pay nearly US$600,000 in restitution.

Jump in card fraud abroad drives up UK losses - Apacs

samport — Thu, 04 Oct 2007 13:07:56 +0200

A massive rise in fraud committed on UK cards abroad pushed up industry losses in the first half of the year, even though domestic card fraud levels fell during the period, according to industry figures released by payment association Apacs.
Total credit card fraud losses increased by 26% to £263.6 million in the six months to June 2007, compared with £209 million in the first half of 2006.

The rise was mainly driven by the rise in fraud committed on UK-issued cards abroad, which jumped 126% to £108.8 million in H1, from £48.1 million a year earlier.

By contrast UK card fraud losses fell four per cent during the period from £160.8 million to £154.8 million. Losses at UK retailers fell 11% to £37.5 million, while cash machine fraud was down 57% to £17.1 million.

Apacs says chip and PIN has contributed to the drop in domestic fraud, but fraudsters have switched to using cloned cards abroad in places where chip and PIN hasn't yet been implemented.

"These figures show how the fraudsters have changed tack," says Sandra Quinn, director of communications, Apacs. "A couple of years ago they were mainly stealing cards and card details for use in UK shops and cash machines, but today, because of chip and PIN, they have been driven overseas - using fake magnetic stripe cards specifically in countries which have yet to upgrade to chip and PIN."

Meanwhile the 157% rise in Internet shopping contributed to a 44% jump in card not present (CNP) fraud, which rose from £95.3 million to £137 million.

However, on a more positive note, the first half saw a steep drop in Internet banking losses, which fell 67% from £22.4 million to £7.5 million, even though phishing incidents rose by 42%.

UK e-Shopping Boom Brings Fraud Increase

samport — Mon, 08 Oct 2007 00:00:00 +0200

In July 2007, monthly UK Internet shopping sales rose above £4 billion (US$8 billion) for the first time ever.But the growth in online shopping is being accompanied by a corresponding rise in Internet fraud, a survey reveals.

In July 2007, UK Internet shopping rose by 80 percent to £4.2 billion from £2.34 billion in July 2006, IMRG reports. The UK e-retail trade association says wet weather in July and rising usage of broadband Internet connections were the main reasons for the surge in Web sales that month.

The growth in cyber-crime is costing the UK's online retailers around £580 million a year, according to a survey by IMRG and prepaid Visa voucher supplier 3V.

Research carried out by 3V and IMRG shows that almost two thirds (64 percent) of UK Internet retailers have fallen victim to fraudsters. For some e-retailers, fraud is costing them as much as 5 percent of their annual revenues.

The introduction of chip-and-PIN cards at the point of sale in the UK has contributed to the growth in online fraud. Since 2005, UK cardholders have had to use a PIN when making credit or debit card purchases in stores, which has led to a big drop in card-present fraud. Consequently, fraudsters have been forced to target Internet and other types of card-not-present transactions, IMRG and 3V say.

Over a third (36 percent) of UK e-retailers have experienced a marked increase in fraudulent activity online since the introduction of chip-and-PIN, the survey reveals.

Source: http://www.epaynews.com

Press release - Ingram Micro Data Capture/POS Division and Samport enter strategic partnership

samport — Wed, 10 Oct 2007 14:37:21 +0200

Ingram Micro DC/POS Division and Samport Payment Services have signed a strategic agreement. Utilizing Samport's software and card processing capabilities, Ingram Micro will leverage their reseller network to market and sell card payment terminals. Sweden will be the first market where the offering will be launched and more markets are to follow.

Ingram Micro Inc. is the world's largest technology distributor. As a vital link in the technology value chain, Ingram Micro creates sales and profitability opportunities for vendors and resellers through unique marketing programs, logistics services, technical support, financial services and product aggregation and distribution. The new Ingram Micro Data Capture/POS (Point-Of-Sales) Division specialises in value-added data capture and POS technologies and delivers adjacent technologies to provide complete end-to-end solutions, services and support.

Samport specialises in helping banks, large merchants and system vendors handle the demands of secure, effective and cost efficient debit and credit card transactions, whether through payment over the Internet or in retail stores.

Ingram Micro and Samport have now entered a partnership to offer card payment terminals from multiple terminal vendors with Samport's software and processing services. In this strategic cooperation, Samport will be responsible for the functionality of the terminals as well as the development of value added services. Ingram Micro will bring in its vendor relationships, large customer base and expertise in the distribution, logistics and financial services associated with the sales of terminals.

TJX breach gets bigger with 94 million card numbers exposed

samport — Fri, 26 Oct 2007 12:18:24 +0200

Over 94 million Visa and MasterCard accounts may have been exposed to fraudsters in the security breach at US retailer TJX, more than double the number previously reported.

Samport ZEUS 2.0

johan — Fri, 02 Nov 2007 13:15:16 +0100

In November 2007 Samport introduces the Samport ZEUS 2.0 Anti-Fraud Platform. This innovative and unique anti-fraud platform capitalises on the highly successful SAFS (Samport Anti Fraud System) and it is specially developed for banks and payment service providers (PSP's).

Samport ZEUS is an advanced anti-fraud system packaged in hardware and it is adjusted to meet the latest fraud trends in different countries, industries and product categories. Samport is the first company to offer an anti-fraud platform of this kind. Samport ZEUS is specially designed for banks and PSP's for integration of their payment services. Samport ZEUS analyses in less than a second all incoming card transactions and assigns a risk scoring to each of them. The user decides the threshold for rejecting or accepting a transaction. Switching to Samport ZEUS will significantly reduce fraud and eliminate false positives associated with less sophisticated anti-fraud systems.

What is new with Samport ZEUS 2.0?

1. Dynamic handling for diverse customer segments
Samport ZEUS distinguishes between different customer behaviour by assigning a dynamic filter to each merchant. These filters are tuned to stop fraud and let good transactions through in that particular customer segment. Currently there are 20 filters in such different industries like consumer goods, airline tickets, gambling, etc.

2. Increased Control
With Samport ZEUS you will be able to control your infrastructure in a better way. With Samport ZEUS integrated in your network and infrastructure, you will be able to track and monitor all merchants/transactions in real time. Detailed transaction information is displayed and high risk merchant behaviour will be highlighted through an easy-to-use early warning system.

U.S. Q3 e-Commerce Sales Up 23 Percent

johan — Tue, 06 Nov 2007 11:33:17 +0100

In the third quarter of 2007, U.S retail e-commerce transactions rose by 23 percent to US$28.44 billion from US$23.05 billion in the same period last year, according to ComScore. The U.S.-based consultancy says its figures exclude online auctions, travel purchases, and large corporate purchases.

"U.S. online retail spending continues to grow at rates in excess of 20 percent year-on-year, which suggests that the market is still far from maturity," says Gian Fulgoni, ComScore chairman,. "Even online travel commerce, which is a more developed market, continues to experience double-digit gains."

According to ComScore, online travel purchases rose by 11 percent to US$20.15 billion in the third quarter of 2007 from US$18.24 billion in the same period last year.

For the first nine months of 2007, U.S. retail e-commerce spending totaled US$83.59 billion, while online travel purchases were worth US$59.74 billion. Retail e-commerce spending was up by 21 percent compared to the first nine months of 2006, while online travel spending was up by 13 percent, ComScore says.

Source: www.comscore.com

Europe's 2007 Christmas: An Online Retail Wonderland

johan — Tue, 13 Nov 2007 14:37:03 +0100

Net users will spend a projected €51 billion online during the Christmas Season.
Europe's online retail continues to grow, with a 58% increase in year-on-year sales in 2007. Online sales during the Christmas period are no exception. This year will bring good tidings to Europe's online retailers, which will rake in €51 billion collectively between October and the year's end - always the most important quarter for European retailers.

The largest online retail market is the UK, with 27 million online shoppers spending more than €700 each online during the Christmas shopping season - accounting for a record-breaking €20 billion in online sales. Germany's online shopping spend has grown to €12 billion. The categories that show the biggest uplift are the typical gift items - books, videos and DVDs, jewellery, toys, video games, consumer electronics, and alcohol. Despite a smaller Christmas season boost, the leisure travel category will claim the most online sales - responsible for 31% of Christmas sales.

Source: Research from http://www.forrester.com. 17 European countries participated in the survey.

Most U.S. Banks Seen Using Strong Authentication

johan — Mon, 26 Nov 2007 10:26:33 +0100

When the U.S Federal Financial Institutions Examination Council (FFIEC) issued guidelines in late 2005 to get U.S banks to adopt stronger security measures for consumer Web banking, the industry was very slow to respond. But new research by TowerGroup has found that 95 percent of U.S. banks now comply with - or are close to complying with - the FFIEC's authentication guidance.

The FFIEC guidelines require banks to implement "strong" authentication methodologies that enable them to assess and mitigate the potential risk of Internet banking transactions.

TowerGroup says U.S. banks seem to have been able to strike an appropriate balance between authentication "strength" and customer convenience,. Banks are often using a combination of technologies such as end user device identification, IP (Internet Protocol) address geolocation, and challenge/response questions, the U.S.-based consultancy says.

"Many banks report that new authentication techniques have reduced online fraud losses while driving increases in consumer Internet banking adoption and usage," TowerGroup says. "This counters early concerns that stronger authentication technology would inconvenience consumers to the point of driving online banking usage down."

But, TowerGroup says, U.S. banks need to strengthen their current risk-based authentication technologies with additional end user device-identifying components, especially IP intelligence data. Also, banks should implement back-end fraud detection technologies that identify transactional and behavioral anomalies, and seek ways to share fraud data relating to known fraud sources with other financial institutions, it says.

"Banks cannot simply meet the current FFIEC guidance and rest on their laurels," TowerGroup advises. "They must continue to stay ahead of the curve."

Banks let us down on fraud protection

johan — Mon, 10 Dec 2007 11:19:20 +0100

Some customers are left exposed because their sites don't have the latest security. Our correspondent asks if your bank is really safe.

Some of Britain's biggest banks are leaving their customers at risk of fraud because they are being slow to adopt new technology, experts said last week.

The warning came after the information commissioner and Scotland Yard launched an investigation into how banking details, including Pin numbers and security codes, had appeared for sale on black-market websites.

Experts said it was the first time that such detailed information about bank customers had been available online.

Several banks, including Barclays, NatWest and Alliance & Leicester, have introduced technology known as "two-factor authentication", which offers a second layer of protection on top of the traditional Pin numbers and passcodes. This makes it more difficult for fraudsters to read your Pin using a process known as "key-logging".

However, even though Apacs, the UK payments authority, thinks the new technology is "top notch", Lloyds is only testing it and Halifax and Nation-wide say they will start to roll it out between the start of next year and the spring of 2008 - potentially leaving some customers more exposed to fraud.

Richard Clayton, a security expert at Cambridge University, said: "Banks that don't offer two-tier authentication will potentially be an easier target for fraudsters."

Halifax admitted as much last week. "Any system that uses just a set password is potentially insecure against fraudsters using spy-ware and key-logging techniques," a spokesman said.

Banks may even fall foul of the law. Stuart Robinson of the law firm OutLaw, which advises a number of high-street banks, said they were obliged to keep up with the latest measures.

Merry Christmas

johan — Wed, 19 Dec 2007 10:18:40 +0100

We wish our Customers and Partners a Merry Christmas and a Happy New Year. We want to thank You for a great 2007 and we look forward to a new and exiting year with You!

All the best from Samport!

ROBERT LITTÅS, Risk Expert at Visa, joins Samport board

johan — Mon, 07 Jan 2008 09:54:57 +0100

Robert Littås has been elected to the board of Samport Payment Services AB. Mr Littås has broad experience in risk management and extensive knowledge of the card payment industry. As well as strengthening the strategic work of the board, Mr Littås will also participate in and support the geographical expansion of Samport´s business.

Samport is one of the market leaders in the development and sale of advanced payment and anti-fraud systems for credit card transactions. The market leading product Samport ZEUS protects banks, PSPs and their merchants from the ever-increasing risk of card fraud. Samport LETO brings card payment functionality to banks, system vendors and large merchants.

Mr Littås currently works in London as a Risk Manager Consultant for Visa Europe. From 1998 to 2007, he was Senior Vice President of Visa Europe where he headed the Risk Management Department. Prior to his career at Visa, he joined the police force, working in Sweden and for the United Nations in Cyprus. Later he was recruited to Interpol, first stationed in Stockholm and later in Paris, where he headed the Department of Economic Crime.

- We are very pleased that Robert Littås has agreed to join the board of Samport and become a shareholder, says Georg Kjällgren, Chairman of the board at Samport Payment Services AB. Robert Littås brings extensive knowledge of the card payment industry and we look forward to working together with Mr Littås in the strategic development of Samport.

- Samport is a very exciting company, says Robert Littås. I believe that its concept as a vendor offering advanced anti-fraud systems for the acquirer is unique and very well positioned. I am looking forward to contributing to the future success of the company as the business expands into new geographical areas.

Press release - Online Fraud Hits Christmas Shopping

johan — Fri, 11 Jan 2008 10:23:54 +0100

This year's Christmas shopping surged in the United Kingdom as sales peaked at £2000 per minute on December 27th. Online shopping has also grown with an estimated £440 million spent through retail websites on Christmas Day, Boxing Day and the 27th. This represents an increase of 41 % on last year. In Sweden, similar estimates conclude that online shopping increased with staggering 37 per cent compared to last year. As online shopping is increasing payment card fraud becomes a critical problem to solve. Samport presents new fraud statistics and identifies geographical risk areas in Sweden.

The increase in shopping has been accompanied by £17 million of fraudulent activity in the UK during these three days. An estimated 8,500 individuals or cells of fraudsters attempted to use stolen or cloned credit cards online every day. According to The Times the £17 millions of attempted fraud represented about 4 per cent of online retail activity. All but £1.9 million of these fraudulent activities were detected and blocked. These alarming figures show that some 11 per cent of card frauds actually succeeded in the UK regardless of anti fraud systems.

Samport Payment Services AB statistics for the Swedish Christmas shopping reveal similar figures. Samport's anti fraud system Samport ZEUS classified more than 5 per cent of all transactions online as fraudulent attempts. Watches, mobile phones, digital cameras and PC games and game consoles are the most sought after items for the fraudsters. It is assumed that the fraudsters take advantage of the increased shopping around Christmas to blend in among legitimate shoppers. Many retailers still lack anti fraud systems and are especially vulnerable if targeted.

Sweden's largest gaming company, Svenska Spel, signs card payment processing agreement with Samport.

johan — Fri, 18 Jan 2008 11:02:09 +0100

Svenska Spel is the largest gaming company in Sweden and is owned by the Swedish state. In early 2007, Svenska Spel initiated a selection process to find the most suitable partner for their card payment transactions. After research and evaluation of potential payment providers, Svenska Spel decided to enter into partnership with Samport Payment Services AB.

The agreement allows Svenska Spel to use Samport's system for Internet- and terminal payments (POS) as well as Samport's advanced anti-fraud solution. Initially, all kinds of Internet payments are to be handled by Samport whilst the terminal payments are optional to Svenska Spel. With one platform providing the ability to perform both Internet- and terminal payments, Samport offers Svenska Spel a cost efficient solution for all card payment transactions.

- We are very proud and excited to welcome Svenska Spel as a customer. We are confident that our payment system and anti-fraud solution will meet Svenska Spel's demands. Samport's system is built to handle both Internet- and terminal payments, and together with our anti-fraud solution we can offer a complete solution, says Mikael Hedlöf, CEO at Samport.

- Efficient and secure card payments are becoming even more important as we experience business growth. With Samport, we can work closely with one provider for all areas. Samport's capabilities to offer Internet- and terminal payments (POS) from one system as well as their advanced anti-fraud solution were important factors for us. In addition, we were impressed by their flexibility, competence and responsiveness. We are looking forward to working with Samport as our card payment partner, says Andreas Jansson, Director of Corporate Communications at Svenska Spel.

Samport at Nordic Card Markets – Stockholm

johan — Tue, 22 Jan 2008 09:56:40 +0100

Samport is participating in SMi's annual Nordic Card Markets conference at Sheraton in Stockholm the 22nd and 23rd of January 2008. The conference brings together the regions leading banks, retailers and technology and card providers for two days of targeted presentations and extensive networking opportunities. The conference programme examines innovative payment techniques, the issues and challenges facing Nordic retailers and the latest developments surrounding the rollout of contactless payments across Europe. With over 140 attendees this remains the leading cards and payments conference dedicated to the Nordic Region.

Samport at events in February 2008

johan — Wed, 30 Jan 2008 11:20:58 +0100

In February 2008 Samport will participate in events such as exhibitions, seminares and conferences. The main topics of all the events are Card Payments and/or Card Fraud. If you are interested in meeting us at any of the following events, please send an e-mail to Hanne Jensen (Marketing Manager) at hanne.jensen@samport.com

05/02:
"Future Card Payments" - Berns in Stockholm.

06/02:
"Internet EXPO EasyFairs" - Sollentuna Expo, Stockholm

12-13/02:
"European Plastic Card & Online Fraud Detection & Prevention" - Jolly St Ermins Hotel, London

European Plastic Card & Online Fraud Conference

johan — Mon, 18 Feb 2008 16:11:49 +0100

February 12-13th, Samport attended the 9th Annual "European Plastic Card & Online Fraud" conference in London, UK. Introduced by mr Peter Bayley (VISA Europe) explaining the European fraud trends, the topics involved: How to protect new payment systems, Practical defence against Card-not-present fraud and Balance between customer service and fraud prevention. One alarming conclusion was that the transistion to chip-and-pin cards in Europe increases the risk for Card-not-present fraud. Fredrik Rehnvall, Fraud and Risk Manager at Samport says that this suggests that e-commerce merchants and aqcuiring banks need to sharpen their defences to avoid costly losses.

SAMPORT AT EVENTS IN MARCH 2008

johan — Mon, 25 Feb 2008 09:51:00 +0100

In March 2008 Samport will participate, sponsor and host different events, all focusing on Card Payments and Anti-Fraud Solutions. One important topic is the launch of the new partnership, Samport and Ingram Micro, for payment terminals in Europe. If you are interested in meeting us at any of the following events, please send an e-mail to Hanne Jensen (Marketing Manager) at hanne.jensen@samport.com

04 & 05/03:
Betalingsformidling 2008 - Trondheim in Norway. (Samport is main sponsor of the event)

06/03:
Launch of the new partnership between Samport and Ingram Micro for payment terminals in Europe - Holmenkollen Park Hotel in Oslo - Norway
Pressconference 10.00-12.00
Reseller information 12.00-16.30

New fraud risk for chip and PIN revealed

johan — Wed, 12 Mar 2008 14:27:47 +0100

'Chip and PIN' cards which require customers to enter a four-digit code before purchasing goods may not be as safe as previously thought, according to research.

Customers may unwittingly be handing over their card details and pin number when using the new terminals, which have been widely rolled out at supermarkets, service stations and other outlets, a group of computer security academics has claimed.

According to the research, with a relatively simple 10 minute procedure a merchant can program a chip and PIN terminal to capture all the information needed to clone a chip and PIN card, as well as the customer's PIN number.

The fraudster would then be free to make withdrawals from the customer's bank account, as well as commit identity fraud, the group said. The researchers, from the Computer Laboratory at the University of Cambridge, said they had no evidence to suggest the problem was widespread, though they were aware of several instances of it happening, including one at a Shell garage in 2006.

They said the vulnerability was caused by manufacturers' failure to build appropriate encryption technology into the devices, known as PIN-entry devices (PEDs), which meant that information passed between the card and the device unprotected.

APACS, the UK payments association which oversaw the introduction of chip and PIN technology in 2006, acknowledged that the new type of fraud was possible, but said it was not as easy to commit as other types of card fraud, which remained a priority for prevention.

"We're not denying that this type of fraud is achievable, but there are much easier ways of carrying out the same type of fraud, including skimming cards and capturing the PIN using a pin-hole camera, and that's what we're focused on," an APACS spokeswoman said.

Samport at events in April 2008

johan — Tue, 25 Mar 2008 15:04:56 +0100

April 2008 Samport will participate, sponsor and host different events, all focusing on Card Payments and Anti-Fraud Solutions. If you are interested in meeting us at any of the following events, please send an e-mail to Hanne Jensen (Marketing Manager) at hanne.jensen@samport.com

02 & 03/04:
Easy Fairs Butiksleverantör- Sollentuna Expo Center, Stockholm.
Together with Ingram Micro we will inform you about our payment terminals and our new and unique order portal. Please visit us at booth number D:22 at Sollentuna Expo Center.

22 & 23/04:
Fraud Europe 2008 - Crowne Plaza- Brussels
Samport is sponsor of the event and will be presenting "Efficient Fraud Prevention" the 23rd of April at 11.35 am.

Efficient Fraud Prevention by Fredrik Rehnvall, Fraud Prevention Manager at Samport:
Finding a Balance Between Low Risk Exposure and a Customer Friendly Fraud Prevention System
• Large scale fraud prevention - How to leverage risk and profitability for acquiring banks, IPSP's and large merchants.
• Merchant fraud prevention for acquiring banks - Techniques for detection and prevention.

For more information about the event and discount for participating, please click at the heading above.

Case Study - Implementation of Samport ZEUS in a High-Risk Company

johan — Fri, 28 Mar 2008 14:32:35 +0100

Case Study, Samport ZEUS - In July 2006 a company in the prepaid gift card industry went live, selling virtual gift cards to customers world wide. From October till December 2006 they suffered high rates of chargebacks due to card-not-present fraud and the trend was increasing. Around Christmas the Company signed a contract with Samport including fraud management and card processing. Samport identified some key problems and the Company introduced automatic risk rules accordingly. The fraudulent transactions dropped quickly during spring 2007. In March, the Company employed the Samport ZEUS fraud screening software. The company's chargebacks dropped further to a steady level of 0.2 - 0.3 per cent.

Read the Case Study here>>

Card theft from travelling Brits

johan — Fri, 04 Apr 2008 10:23:05 +0200

The number of travellers falling victim to credit-card fraud has soared in the past year, with the fraudulent use of UK-registered cards overseas leaping by 77%. Overseas losses from credit-and debit-card fraud totalled £208m in 2007, according to the credit-card industry’s trade body, Apacs, which says that criminal activity is highest in those countries that have yet to adopt chip-and-pin technology.

Gangs infiltrate shops, restaurants and ATMs, often recruiting staff to attach bugging devices - known as skimmers - to card-readers. As cards are swiped, the details encoded in their magnetic strips are recorded and used to manufacture counterfeits. These are then used in countries such as Morocco, Pakistan and the USA, where security measures are more easily circumvented.

“There’s clear evidence that chip-and-pin is driving down fraud in countries that have introduced the technology,” Apacs says. “Two years ago, France was the worst offender, but now the USA is number one, followed by Italy and Australia. As more and more countries adopt chip-and-pin, fraudsters are going to concentrate their efforts in countries that haven’t adopted the system.”

The Sunday Times has learnt, however, that chip-and-pin is perhaps not as foolproof as the banks insist.

Read the whole article here>>

Source: TimesOnline, March 16th, 2008.

About card fraud in today's newspapers

johan — Fri, 18 Apr 2008 15:07:31 +0200

In the leading Swedish newspapers today (DN, SvD etc), you can read about how card fraud works and how fraudsters manage to succeed. Here is a summary of the news:

Here you find the fraudsters
Watch your payment credit and debit card! There are many places where the fraudsters use stolen card details. SJ (Swedish Railways), electronic warehouses and poker sites are the most popular ones.

- It is a noticeable increase in "carding crime". We receive more than ten reports daily from people that have become victims for "carding crime", says Thomas Bäcker, Research Manager at Stockholm City police.

Gaming at poker sites is one way to get hold of the money from stolen payment card details. However, it is not the most common one. According to Thomas Bäcker tickets are the most common target for fraudsters using stolen payment card details.

Read more about the news here>> and here>>

Samport's comments to this news
- Samport has noticed a substantial increase in Card-Not-Present fraud, starting last Christmas, says Fredrik Rehnvall, Fraud and Risk Manager at Samport. Carding, as mentioned in the article, is on the increase again and we strongly advice all e-commerce merchants to install a fraud shield. This anti fraud software is normally able to stop over 95 per cent of the fraudulent attempts. Regrettably, the fraud awareness among Swedish merchants is not satisfactory. Many merchants contact us only when it is too late, i.e. after fraudulent attack on their web shop, concludes Fredrik Rehnvall.

Samport at events in May 2008

johan — Fri, 25 Apr 2008 16:10:32 +0200

Samport will host two events in May, both focusing on the POS (Point of Sale) market and payment terminals. If you are interested in meeting us at any of the following events, please send an e-mail to Hanne Jensen (Marketing Manager) at hanne.jensen@samport.com

13, 14 & 15 /05:
Conference on the Color Line ferry - From Oslo, Norway to Kiel, Germany
Together with Ingram Micro we will inform resellers about the payment market, payment terminals, PCI standards and our new Order handling system. Some of our partners will present system and product news.

28 & 29 /05:
Swedish Road Show - Scandic Hotel in Malmö (28/5) and Göteborg (29/5)
Samport and Ingram Micro are starting up a Road Show in order to inform both existing and potential partners & resellers about the payment terminal markets and products. June the 3rd the Road Show will take place in Stockholm, Garnisonen Conference Center.

Fraud Europe 2008 Conference in Brussels

johan — Tue, 29 Apr 2008 09:44:30 +0200

Mikael Hedlöf, CEO at Samport and Fredrik Rehnvall, Fraud & Risk Manager at Samport had the privilege to attend the "Fraud Europe 2008" conference in Brussels the 22nd and 23rd of April 2008.

These annual meetings attract some of the most influential European fraud experts. Their contribution and in-depth knowledge combined with several panel discussions proved to be of great value in the fight against organised card fraud.
Samport held a much appreciated presentation on the topic "Card Not Present Fraud" for acquirers and PSP's. The conclusions drawn from some of the leading Risk Managers were that the move to Chip-and-Pin will shift fraud to the Card-Not-Present-Fraud area. The advanced anti-fraud system, Samport ZEUS, has a "Merchant Monitor" feature with 24/7 data mining that was of particular interest to the participants.

For more information about this event or Samport ZEUS, please contact Fredrik Rehnvall, Fraud & Risk Manager at Samport: fredrik.rehnvall@samport.com

Card fraud threatens development of European payments network - EC

johan — Mon, 05 May 2008 14:45:31 +0200

Credit and debit card fraud continues to undermine consumer confidence and threatens to hinder the development of a cross-border payments network in Europe, according to a European Commission (EC) report.

Even if it affects a minority of users, payment fraud still "undermines the general confidence in payments systems", says the study on the actions undertaken on prevention of payment fraud between 2004 and 2007.

Commenting on the report, EU internal market and services commissioner, Charlie McCreevy, says: "Payment fraud affects consumer confidence in non-cash means of payment and therefore remains a threat to the success of the single market for payments."

A study conducted for the Commission in 2007 shows that user trust in certain authentication methods for cashless payments could be improved. "Maintaining or enhancing user confidence does not necessarily require new legislation, but rather the commitment of the parties involved to achieve this goal," states the report.

Citing 2006 figures, the EC says there are 10 million fraudulent transactions in the Sepa area per year, affecting 500 000 merchants, representing roughly EUR1 billion in losses.

Although chip and PIN has resulted in a fall in some types of card fraud, there has been a corresponding rise in the level of card-not-present fraud mainly committed on the Internet.

The report says criminals have been taking advantage of gaps in the security procedures used by the payment industry and e-commerce sites when accepting credit card transactions. Not all merchants have been collecting card security codes, while payment card issuers have not systematically rejected transactions with false or no card security code, says the EC. The airlines/travel agencies and gaming/gambling sectors have been identified as "weak areas".

Samport at events in June 2008

johan — Mon, 26 May 2008 15:39:39 +0200

Samport will participate in two conferences and host one road show in June. Two of the events will focus on the POS (Point of Sale) market and payment terminals. The other conference is an European Card Acquiring Forum. If you are interested in meeting us at any of the following events, please send an e-mail to Hanne Jensen (Marketing Manager) at hanne.jensen@samport.com

03/06:
Swedish Road Show nr 3 - Garnisonen Conference Center, Stockholm
Samport and Ingram Micro host a Road Show in order to inform both existing and potential partners & resellers about the payment terminal markets and products.

04-06/06:
European Card Acquiring Forum - Brussels, Belgium
This event aims to start a debate between all parties involved in the European Card Acquiring Value Chain. For three days, the 120+ participants will have a possiblity to share best practices and understand conflicting views and perspectives.

16-17/06:
Samport and Ingram Micro will have a stand at the Swedish Taxi conference in Umeå, Sweden. Within the next couple of years, all taxi payment terminals need to accept EMV payments.

Australian Credit Card Fraud Trumps Other Payment Types

johan — Mon, 09 Jun 2008 11:02:12 +0200

Credit and charge card fraud has been rising in Australia, while debit card and check fraud has decreased, says the Australian Payment Clearing Association (APCA).

In 2007, credit and charge card fraud accounted for 88 percent of the total number of fraudulent transactions in Australia.

APCA includes fraud involving Visa- and MasterCard-based debit cards in the category of credit card fraud. Australian banks only started issuing MasterCard debit cards in 2005, although Visa debit has been available for many years.

Australia also operates a proprietary debit card scheme called EFTPOS, which accounts for the majority of domestic debit transactions.

EFTPOS debit cards used at the point of sale and ATMs accounted for 12 percent, and checks for just 0.4 percent of all fraudulent transactions in 2007. As they are PIN-based, EFTPOS cards cannot be used on the Internet or over the phone.

APCA says that in the year to December 2007, the value of fraudulent transactions per A$1,000 (US$958) transacted was 0.8 cents for checks, down from 1.92 cents in 2006. EFTPOS debit card fraud was 7.17 cents per A$1,000 of transactions, down from 7.73 cents in 2006.

Over the same period, credit and charge card fraud was 44.50 cents per A$1,000 of transaction, up 17 percent from 36.93 cents in 2006.

The largest component of Australia's credit and charge card fraud was due to card-not present (CNP) and cross-border fraud, APCA says. CNP includes fraud conducted over the Internet, phone, mail and fax.

"While Australia's payment card fraud rate has increased over the last 12 months, it still remains low by global standards," says APCA CEO Chris Hamilton. "For example, the UK's payment card fraud rate is the equivalent of A$1.18 in every A$1,000 as against slightly under 28 cents in Australia."

Samport at The European Card Acquiring Forum - Brussels

johan — Tue, 10 Jun 2008 11:01:20 +0200

The European Card Acquiring Forum held in Brussels between the 4th to the 6th of June attracted about 200 senior decision makers from all parts of the card acquiring value chain (e.g. banks, processors and payment service providers in Europe).

Mikael Hedlöf, CEO at Samport was participating and commented the event:
- Strategic as well as tactical industry topics were on the agenda and the Forum allowed business meetings within the industry. The high quality of participants and relevant subjects during presentations established the Forum as an important industry event in the future.

Samport is likely to participate at this event next year and will look at speaking opportunities for anti fraud solutions.

You will find more information about the event here>>

UK Group Pinpoints Top Fraud Hotspots

johan — Thu, 17 Jul 2008 14:40:36 +0200

London and the South-East of England are the UK's key hotspots for fraudulent account applications across all product types, according to CIFAS , a member organization that provides fraud prevention services for 270 UK companies in financial services sectors.

The top 10 most commonly appearing postal districts in CIFAS's overall UK fraud database are all in the Greater London area. The London E6 East Ham postal district comes top for fraud across all categories in the UK, followed by CR0 Croydon and SE15 Peckham in third place.

The highly populated South-East is also a major area of activity for fraudsters, CIFAS's database reveals.

According to CIFAS, bank accounts and credit cards are fraudsters' favorite products for making fraudulent applications in the UK.

"Although it's not unexpected that fraud should be at its most prevalent in cities, it is remarkable that almost all fraudulent activity is concentrated in and around London," says CIFAS Research Manager Sandra Peaston.

According to Peaston, one reason why London is a hub of fraudulent activity is because fraudsters feel the city's population density affords anonymity. However, fraudsters targeting Greater London may have a false sense of security. "Years ago, it might have been true that big cities offer anonymity to fraudsters, but fraud data sharing has put an end to that," Peaston says.

Source: ePayments.com, July 17th, 2008.

Substantial Increase in Card Fraud

samport — Thu, 07 Aug 2008 12:52:39 +0200

In the Swedish TV channel today, SVT, the increasing problem of card fraud over the Internet was discussed.

The number of fraudulent transactions online is increasing heavily. Between January and May 2008 the number of reported fraudulent transaction in Sweden increased with 23 percent compared to same period last year.

During the first six months in 2007 were 1.500 online fraud transactions reported. So far this year around 3.500 online fraud transactions are reported.

Read more here>>

Samport is commenting the news:
- The problem of card fraud is not something new but the last year we have identified a rapid increase. Banks and large merchants need to make sure that they have an advanced and well developed anti-fraud system to be able to handle the numerous and diverse threats, says Fredrik Rehnvall, Fraud and Risk Manager at Samport.

Source: SVT, August 7th, 2008.

Dramatic Increase in Card Fraud

samport — Thu, 04 Sep 2008 13:29:18 +0200

In the Swedish newspapers this week, the increasing problem of card fraud was discussed:

During the first six months in 2008, payment card fraud increased by 33 % in Sweden, reports Dagens Nyheter. Every 30 minutes a fraud is reported to the police. It is primarily card not present fraud that is on the increase, surmises Thomas Bäcke at the counter fraud section in Stockholm.

The introduction of Chip-and-Pin cards has made counterfeit fraud more difficult. Fraudsters are now turning to card not present fraud also known as "carding", which is unaffected by the Chip introduction. "There are fully developed businesses for card not present fraud" says Bäcke. "The perpetrators are persistent, hungry and defiant. The fraud losses are not large enough for the banks to impel them to introduce tougher anti-fraud systems, concludes the Thomas Bäcke.

Stefan Holm at Visa Sweden emphasises that the card holder will not be liable for fraud and downplays the impact. "Fraud in Sweden comprises only 0.025% of all transactions compared to the Euro level of 0.055.

Read more here>>

11 Charged in Theft of 41 Million Card Numbers

samport — Mon, 22 Sep 2008 11:29:24 +0200

Federal prosecutors have charged 11 people with stealing more than 41 million credit and debit card numbers, cracking what officials said on Tuesday appeared to be the largest hacking and identity theft ring ever exposed.

The thieves focused on major national retail chains like OfficeMax, Barnes & Noble, BJ's Wholesale Club, the Sports Authority and T. J. Maxx - the discount clothes retailer that first suggested the existence of the ring early last year, when it said its systems had been breached by hackers.

Underscoring the multinational, collaborative aspect of organized crime today, three of the defendants are United States citizens, one is from Estonia, three are from Ukraine, two are from China and one is from Belarus. The name and whereabouts of the final defendant are unknown.

Federal officials said a principal organizer of the ring was Albert Gonzalez, a man from Miami who was indicted on Tuesday by a federal grand jury in Boston on charges of computer fraud, wire fraud, aggravated identity theft, conspiracy and other charges. If convicted on all counts, Mr. Gonzalez would face life in prison.

Mr. Gonzalez and several in his cohort drove around and scanned the wireless networks of retailers to find security holes - known as "war driving," according to prosecutors. Once the thieves identified technical weaknesses in the networks, they installed so-called sniffer programs, obtained from collaborators overseas.

Read more here>>

Source: The New York Times, August 5th, 2008.

Credit card fraud up 14 per cent to £301.7 million

samport — Fri, 03 Oct 2008 14:51:32 +0200

Credit card fraud reached a record high in the first half of this year, with losses up 14 per cent to £301.7 million. Apacs attributed this rise to an increase in card fraud committed abroad in countries where chip and pin is yet to be introduced. Fraud losses abroad have risen by 190 per cent in the last three years to £121.2 million. Fraud committed in face-to-face transactions in shops rose by more than a quarter to £47.4 million, while cash machine fraud rose by 22 per cent, after declining year-on-year since 2004.

Apacs said the increase in online, phone and mail order shopping fraud, know as "card-not-present" fraud, should be seen in the context of the proliferation of online retailers, and the even greater increase in the number of people now shopping online. For instance, between 2001 and 2007, this type of fraud rose by 204 per cent, compared with a 415 per cent increase in online shopping card transactions.

Fraud on lost or stolen cards was the only type of fraud to fall this year, coming down from £30.7 to £27.3 million from the same period last year.

Read more here>>

Source: www.timesonline.co.uk, October 1st, 2008.

Chip and pin scam has netted millions from British shoppers

samport — Mon, 13 Oct 2008 14:19:45 +0200

A sophisticated "chip and pin" scam run by criminal gangs in China and Pakistan is netting millions of pounds from the bank accounts of British shoppers, America's top cyber security official has revealed.

Dr Joel Brenner, the US National Counterintelligence Executive, warned that hundreds of chip and pin machines in stores and supermarkets across Europe have been tampered with to allow details of shoppers' credit card accounts to be relayed to overseas fraudsters.

These details are then used to make cash withdrawals or siphon off money from card holders' accounts in what is one of the largest scams of its kind.

In an exclusive interview with The Daily Telegraph, America's counterintelligence chief said: "Previously only a nation state's intelligence service would have been capable of pulling off this type of operation. It's scary."

An organised crime syndicate is suspected of having tampered with the chip and pin machines, either during the manufacturing process at a factory in China, or shortly after they came off the production line.

In what is known as a "supply chain attack", criminals managed to bypass security measures and doctor the devices before they were dispatched from the factories where they were made.

The machines were opened, tampered with and perfectly resealed, said Dr Brenner, "so that it was impossible to tell even for someone working at the factory that they had been tampered with." They were then exported to Britain, Ireland, the Netherlands, Denmark and Belgium.

An investigation launched by Mastercard International is understood to have discovered several of the corrupted machines at British branches of Asda and Sainsbury's.

Can banks stay ahead of the fraud game?

samport — Tue, 28 Oct 2008 20:43:51 +0100

Elliot Castro, independent consultant and former credit card fraudster, was speaking alongside 192 Business Services at a pre-paid card summit in London this week. Finextra spoke to him afterwards to get his views on recent industry developments to combat fraud.

His exploits, based largely on social engineering techniques rather than online activities, are detailed in the book he co-authored last year. One of the most important things he thinks banks need to do to help combat fraud is educate customers more about protecting personal details.

Watch the interview here>>

Source: www.finextra.com, October 24th, 2008.

Chip and PIN fraudsters jailed

samport — Thu, 30 Oct 2008 11:31:46 +0100

Two men who purloined the details of thousands of credit cards from Chip and PIN terminals and used them to make counterfeits before stealing over £1 million have been jailed at a London Court.

Anup Patel and Anthony Thomas were found guilty of conspiring to steal and defraud at Croydon Crown Court yesterday. Patel - believed to be the mastermind behind the gang - was sentenced to six years in prison and Thomas to two years.

Police say the two men ran a fake credit card factory, using stolen data to manufacture counterfeit cards.
According to press reports, the card data was obtained by installing fake payments terminals with hidden data readers at petrol stations around the capital. The fake cards were used to make purchases and withdrawals from ATMs - worth over £1 million - in countries where Chip and PIN is not used, including Thailand.

In October 2006 City of London Police raided Patel's office unit and home address. They found equipment used to produce fake credit cards, including magnetic strip cards capable of being re-written with skimmed data, lists of data annotated with PIN numbers and payments terminals.

Card Fraud Over the Internet Grows Dramatically

samport — Tue, 11 Nov 2008 12:27:35 +0100

Card fraud over the Internet grows dramatically as online shopping increases. About 5 per cent of the orders placed online are fraudulent. The problem of online auction schemes are also increasing.

Read the article here>>
You will find an interview with Fredrik Rehnvall, Fraud and Risk Manager at Samport

Source: Upsala Nya Tidning, November 11th, 2008.

Merry Christmas

samport — Thu, 18 Dec 2008 11:37:11 +0100

Samport wishes all our Customers and Partners a Merry Christmas and a Happy New Year!

New Hosted Internet Solution from Samport

samport — Fri, 13 Feb 2009 15:35:55 +0100

New Hosted Internet Solution from Samport

With new demanding requirements from Visa/Mastercard and the acquiring banks, more Internet solutions are moving from API solutions to Hosted solutions. Often Hosted solutions lacks some of the API functionality and possibilities to more advanced function calls like recurring payments and storage of Card numbers for loyalty cards etc.

Samports new Hosted solution with API light functionality solve all these problems. With functionality that not requires collecting nor storage of Card data, to meet up with PCI DSS requirements and SAQ A compliance, Samports Hosted solution gives you all the benefits that an API solution earlier had.

If you have the Samport API solution today, a simple integration of our Hosted solution can be made and almost all existing functionalities can be used from the API.

If you still are interested in Samport API full solution, collecting and sending in full card data, you will need an approval from the acquiring bank.

Samport speaks at PCI Tallinn 2009

samport — Fri, 12 Jun 2009 17:01:11 +0200

Robert Sundberg, VP Anti Fraud Systems, speaks at PCI Tallinn 2009 Wednesday June 17th regarding "PCI from a PSP perspective".

The event is held as SAS Radisson Hotel and will discuss PCI DSS and Payment Security in general of the Baltic, Scandinavian, Nordic region. The event will bring together a spectrum of interested parties including the region's banks, merchants and card associations to discuss challenges in the adoption of the PCI DSS. Furthermore the event will provide strategic insight and simple, cost-effective technological solutions to counter the growing risks of fraud and data breaches.

Click here for the Link to the event.

Samport participates in 20th ACFE in Las Vegas

samport — Sun, 12 Jul 2009 23:54:15 +0200

Samport will exhibit and attend the 20th annual ACFE (Association of Certified Fraud Examiners) Fraud Conference and Exhibition. You can meet us in booth 216 between conference sessions. The event takes place July 12-17 at the Bellagio in Las Vegas, USA.

Over 2.000 Anti-fraud professionals from around the world gather at the ACFE's Fraud Conference and Exhibition to learn the latest on how to detect and prevent fraud in their organizations. The keynote speakers, panel discussions and educational workshops all provide valuable, ready-to-implement ideas that help put their companies in a better position to eliminate fraud from their workplace.

About the ACFE
The Association of Certified Fraud Examiners is the world's largest anti-fraud organization and premier provider of anti-fraud training and education. Together with nearly 50,000 members, the ACFE is reducing business fraud worldwide and inspiring public confidence in the integrity and objectivity within the profession.

Launch of Samport SPECTER 1.0

samport — Sat, 19 Sep 2009 01:30:18 +0200

After a successful trial period with a major Scandinavian acquiring bank, Samport officially release Samport SPECTER 1.0. This web based software gives an acquirer or iPSP a powerful tool to monitor its merchants web content and control their PCI compliance. All products and services sold can now effectively be screened automatically in order to remain compliant with VISA and MasterCard regulations. As a result, Samport SPECTER becomes an essential tool in the risk management area, eliminating the risk for costly fines due to processing noncompliant or illicit transactions. For a full product description, click here.

MasterCard Global Risk Management Conference

samport — Tue, 06 Oct 2009 20:06:12 +0200

Samport will exhibit and attend MasterCard Global Risk Management Conference Series. You can meet us in our booth between conference sessions. The event takes place October 12-15 at the Corinthia Grand Hotel Royal in Budapest, Hungary.

The MasterCard Academy of Risk Management (ARM) provides best-in-class knowledge and expertise to customers to enhance their fraud management capabilities.
Managing risk in the payment card industry requires understanding and implementing the latest strategies, tools and services. ARM focuses on providing financial services professionals with the latest concepts, processes and solutions to combat fraud and mitigate risk.
In 2008, over 1,500 representatives from more than 350 financial institutions, processors, and payment card service and solution providers participated in ARM events across the globe. MasterCard strives to continue the effort to innovate, collaborate, and educate with their industry partners through the ARM conferences and courses that are scheduled throughout the year.

Samport releases Samport SPECTER 1.1

samport — Fri, 09 Oct 2009 17:42:00 +0200

Samports tool for acquiring banks to control web content for their brick and mortar merchants as well as e-commerse merchants, Samport SPECTER, has a new version released today. Among some of the new features that Samport SPECTER 1.1 presents is: - PCI and SAQ level: To better control and manage your merchants, set the PCI and SAQ level.- Customize your merchant view: View the dashboard as you want to, select the merchant criteria you are interested of to list your merchants.- Export functionality: Customize an excel report selecting e.g. MCC code, Status, Groups, PCI and SAQ level. All to simplify internal reporting and Card scheme reports.- XBRL report: Have the above being polled automatically to your internal system via our XML based XBRL report. You set the frequency of the polling yourself.- Country specific user accounts: Do your bank have business in several countries, now you can create country specific user accounts allowing only access per sub division.

Merry Christmas

samport — Mon, 21 Dec 2009 11:45:41 +0100

Merry Christmas

A Happy New Year 2010

Samport wishes all our Customers and Partners a Merry Christmas and a Happy New Year!

Samport speaks at ECAF 2010 in Berlin

samport — Wed, 17 Feb 2010 17:00:39 +0100

The yearly European Card Acquiring Forum (ECAF) 2010 will take place in Berlin between 24-26 February at the Grand Hyatt. Samport will be exhibiting at the event and also be a speaker when Risk Manager Fredrik Rehnvall will present the topic "Risky Merchants - how to manage illegal and non-compliant e-com sites".

More information about the event can be found here: www.europeancardacquiring.com

MASTERCARD GLOBAL RISK MANAGEMENT CONFERENCE

samport — Thu, 22 Apr 2010 08:48:33 +0200

Samport will exhibit and attend MasterCard Global Risk Management Conference Series. You can meet us in our booth between conference sessions. The event takes place May 4-7 at the Ritz-Carlton Grand Lakes in Orlando, USA.

The MasterCard Academy of Risk Management (ARM) provides best-in-class knowledge and expertise to customers to enhance their fraud management capabilities.

Managing risk in the payment card industry requires understanding and implementing the latest strategies, tools and services. ARM focuses on providing financial services professionals with the latest concepts, processes and solutions to combat fraud and mitigate risk.

In 2009, over 1,500 representatives from more than 350 financial institutions, processors, and payment card service and solution providers participated in ARM events across the globe. MasterCard strives to continue the effort to innovate, collaborate, and educate with their industry partners through the ARM conferences and courses that are scheduled throughout the year.