Data analyzed by Atlas VPN reveals the threat of credit bureau scams has escalated, leading to an alarming rise in cases of identity theft and financial fraud.
This article delves into the evolving landscape of credit bureau scams, integrating data provided by the Federal Trade Commission (FTC) spanning from the first quarter of 2019 to the second quarter of 2023.
During the first half of this year, the FTC has already received 517,128 credit bureau fraud reports, a record amount since the start of the reporting period in 2019.
The data for 2019 shows a relatively modest start with 35,853 credit bureau fraud reports in the first quarter. However, by the end of the year, the numbers had risen to 42,285—an increase of nearly 18% in four quarters. This precursor hinted at the looming escalation of credit bureau scams that would follow in the subsequent years.
The year 2020 witnessed an abrupt surge in credit bureau fraud reports, reflecting a global shift towards remote operations and heightened digital interactions due to the COVID-19 pandemic.
Starting at 53,945 reports in Q1, the numbers swelled to 101,850 by Q4—a staggering 89% increase. This surge can be attributed to the heightened vulnerability of individuals to phishing attacks and data breaches as scammers capitalized on the pandemic-induced confusion.
As the pandemic persisted into 2021, the number of credit bureau fraud reports remained consistently high. Q1 of 2021 saw a substantial increase to 141,613 reports, marking a 39% rise from the previous quarter. While the numbers remained elevated, the increase was not as pronounced as the previous year. This trend suggested that individuals and institutions were adapting to the new digital landscape and implementing more stringent security measures.
The year 2022 displayed a pattern of gradual escalation and refinement in scam techniques. With 192,547 reports in Q4, an increase of nearly 49% from the beginning of the year, scammers were evidently honing their strategies to exploit the evolving digital landscape. This might indicate a shift towards more sophisticated approaches, targeting unsuspecting victims using innovative tactics like spear phishing and AI-generated scam messages.
The first half of 2023 exhibited an alarming growth in credit bureau fraud, with 243,293 reports in the first quarter and 273,835 in the second. This surge likely reflects fraudsters capitalizing on an increased reliance on digital transactions, remote work arrangements, and a growing pool of leaked data.
The Anatomy of credit bureau scams
Fraudsters gather personal data from various sources, including data breaches, social media profiles, phishing emails, or even dumpster diving for discarded documents. This information may include full names, addresses, Social Security numbers, and financial details.
Armed with stolen information, scammers proceed to create false identities or fictitious accounts with the credit bureaus. They pose as legitimate individuals and submit fraudulent applications for credit cards, loans, or other financial services.
Once the fake accounts are established, the fraudsters regularly monitor the credit reports of their victims. They keep track of credit scores and activities, ensuring that the deception remains undetected.
With access to the victim’s credit lines, the scammers go on a spending spree, amassing debts on the fraudulent accounts. These expenses may include lavish purchases, cash advances, or transferring funds to offshore accounts.
To avoid arousing suspicion, fraudsters often make minimum payments on fraudulent accounts, disguising the true nature of their activities. They may also use techniques like ‘bust-out fraud,’ where they max out credit limits and abandon the accounts before moving on to new ones.
As the debts accumulate, the victim’s credit score plummets, causing significant damage to their financial standing and reputation. The burden of repaying debts they never incurred can take years to resolve, causing emotional distress and financial hardship.
To read the full article, head over to: https://atlasvpn.com/blog/credit-bureau-fraud-surged-to-500-000-cases-in-h1-2023-ftc-reports
Guest Post: 80% of education providers hit with ransomware last year, Biden administration responds
Posted in Commentary with tags Atlas VPN on September 20, 2023 by itnerdAs the 2023 academic year kicks off, schools across the globe are facing an escalating cybersecurity crisis, the Atlas VPN team reports.
Data shows the education sector is the most targeted industry by cybercriminals, primarily motivated by the high percentage of schools choosing to pay the ransom.
A recent Sophos survey of 3,000 IT and cybersecurity leaders across 14 countries, including 400 from the education sector, conducted in January-March 2023, reveals that 80% of lower education providers and 79% of higher education institutions reported ransomware attacks in the last year.
Construction (71%), the federal government (70%), and media & entertainment (70%) are also within the top five most targeted industries by ransomware attacks, but at a notably lower rate than educational establishments.
The vulnerability landscape
The survey identifies compromised credentials and exploited vulnerabilities as the top root causes of ransomware attacks in education.
In lower education, 36% of attacks originated from compromised credentials, while in higher education, 40% were due to exploited vulnerabilities.
These figures indicate a need for robust cybersecurity measures and employee training in educational institutions.
Financial and operational costs
While the immediate financial cost of a ransomware attack is evident, the recovery from the attack also includes the cost of system downtime, loss of productivity, and reputational damage.
The mean cost to recover from ransomware attacks across all sectors is estimated at $1.82 million, an increase from the $1.4 million in 2022.
In lower education, the recovery costs have remained steady at around $1.59 million in 2023 and 2022.
Recovery costs in higher education have decreased significantly from the $1.42 million reported last year to just over $1 million in 2023.
Governmental interventions
Meanwhile, On August 7, 2023, the Biden-Harris Administration released a statement outlining new efforts to strengthen America’s K-12 schools’ cybersecurity.
The new initiatives aim to provide up to $200 million over three years to bolster cyber defenses in K-12 schools.
A Government Coordinating Council will also be established to facilitate communication between federal, state, local, tribal, and territorial education leaders to enhance US schools’ cyber defenses and resilience.
To read the full report, head over to:
https://atlasvpn.com/blog/80-of-education-providers-hit-with-ransomware-last-year-biden-administration-responds
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