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Financial Security
Bank Security Credit Card Credit Card Fraud Credit Cards Cyber Security Digital Wallet Financial Security

Virtual Credit Cards: How They Work, Benefits, and Security Features

 

Virtual credit cards are digital versions of traditional credit cards, designed to enhance security in online transactions. Instead of using a physical card number, they generate a unique number for each purchase, reducing the risk of data breaches and fraud. If compromised, a virtual card can be canceled without affecting the main credit card account, making it a valuable security tool. 

Many issuers also provide immediate access to virtual cards upon account approval, allowing users to shop before receiving their physical card. Virtual credit cards function by generating a random 16-digit number linked to a real credit card account. They can be used for online purchases, certain phone transactions, and even in physical stores if added to a digital wallet like Apple Pay or Google Pay. Unlike traditional cards, virtual cards often allow users to set expiration dates and spending limits, giving them greater control over their transactions. Although similar, virtual credit cards are different from digital wallets. 

Digital wallets, such as Apple Pay and Google Pay, store actual card details and other digital assets, while virtual cards generate new numbers for each transaction, offering more protection against cyber threats. However, virtual cards do have limitations—they may not be accepted at all physical locations and can pose challenges for hotel or rental car bookings that require a physical card. Additionally, not all credit card issuers offer virtual cards. To obtain a virtual credit card, users should check if their issuer provides this feature. 

Some banks, like Capital One and Citi, offer virtual card numbers through browser extensions or account portals. Others, such as Chase and Wells Fargo, do not provide one-time-use virtual cards but allow integration with digital wallets. Once generated, users can adjust settings like spending limits and expiration dates to enhance security. While virtual credit cards add an extra layer of protection, they are not entirely foolproof. Hackers may still access an active virtual card, but most issuers provide fraud protection, ensuring users aren’t liable for unauthorized transactions. 

If compromised, a virtual card can be canceled and replaced without changing the main account number. To further enhance online security, consumers can use digital wallets, secure payment platforms like PayPal, and avoid storing payment details in web browsers. Using strong passwords, shopping only on secure networks, and enabling multi-factor authentication also help prevent fraud. 

For those interested in a virtual credit card, the process is simple—choose a card that offers this feature, apply through the issuer’s secure site, and access a virtual number upon approval. By integrating virtual credit cards into their payment methods, users can enjoy safer and more controlled online transactions.
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Virtual Credit Card
Cyber Security Financial Security Online Scam User Privacy Virtual Credit Card

Here's The Ultimate Guide to Virtual Credit Card in Safeguarding Online Privacy

 

Virtual credit cards are digital versions of physical credit cards. They generate a unique credit card number that you can use instead of your physical card number, avoiding the merchant from storing your credit card data and making your financial data more safe. 

With security breaches in the news, using a virtual card adds an extra degree of security. Several major credit card issuers provide virtual cards, although there are several outliers. Virtual credit cards provide more than just security. A virtual credit card allows you to utilise a newly created account before the physical card arrives, allowing you to collect rewards right away or make progress towards a welcome bonus. 

Are virtual cards safer than physical cards? 

Virtual cards provide an additional layer of security over physical cards by safeguarding your real credit card information. This makes them safer than physical cards in various aspects: 

  • Virtual credit cards might have spending caps and be restricted to specific merchants. They can also be configured for single use, deactivating automatically after the very first transaction. These restrictions provide extra fraud protection compared to a standard credit card.
  • Unlike conventional credit cards, virtual cards cannot be stolen or misplaced. If you carry a physical credit card and it is stolen, you may be susceptible to scam. Virtual cards are stored in your digital wallet, keeping you secure from fraud.
  • Virtual credit cards must adhere to the Payment Card Industry Data Security Standard (PCI DSS), which includes standards and guidelines aimed at safeguarding credit and debit transactions and preventing the exploitation of cardholder data. 

Benefits and drawbacks 

Virtual credit cards have many benefits, but there are a few drawbacks. Here are some of the advantages and disadvantages of virtual cards.

Pros: 

Enhanced security: Using virtual cards to make online transactions safeguards your actual credit card information and adds an extra layer of security over physical credit cards. Flexibility: Without changing your actual credit card, you can choose which vendors you want to use the card with, set up expiration dates, and create specific spending limitations.

Convenience: Virtual credit cards are generated instantly and can be utilised immediately for online purchases and contactless payments. Cons: Not always able to utilise them in-store: Not every retailer accepts contactless methods like Apple Pay or Google Pay. When it comes to in-store stores, you can be constrained, even though virtual cards are perfect for internet buying. 

Cons:

Refunds could be difficult: Every retailer has different regulations, and some could only give refunds for the original payment method. If you utilised a virtual credit card number that is no longer active, this can be an issue. Instead, you may get a cheque, a gift card or store credit in this situation.

Unsuitable for reservations: It may be challenging to match your payment method at check-in if you use a virtual card to make a hotel reservation. Since hotels usually need a physical card when you check in, using a virtual card can need further verification, such as getting in touch with your bank.
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KYC
Cyber Crime Financial Security Identity Theft IDS KYC

Cybercriminals Exploit Identity Verification Systems

 


Cybercriminals on the dark web have developed new ways to exploit identity verification systems. Rather than hacking or stealing personal information, they are purchasing it directly from individuals, as revealed by security researchers at iProov. This approach allows them to bypass Know Your Customer (KYC) processes used by businesses to verify customer identities. Researchers found that a criminal group in Latin America is gathering identity documents, such as passports and driver's licenses, along with corresponding facial images. 

In some cases, these criminals pay individuals for their personal data. While the exact amount paid remains unclear, this practice raises serious concerns. This group’s activities extend beyond Latin America, with similar tactics reported in Eastern Europe. Law enforcement agencies in these regions have been alerted to the threat. 
 
Why Is This Dangerous? 
 
Selling personal data equips fraudsters with real identity "kits," which combine authentic documents with matching biometrics. This makes it challenging to identify the kits as counterfeit. According to iProov Chief Scientific Officer Andrew Newell, these kits enable criminals to execute sophisticated impersonation scams, putting victims’ financial security and personal identities at risk. 
  
What Can Be Done? 
 
Classic verification methods have proven inadequate against such advanced attacks. iProov recommends implementing multi-layered security measures to combat these threats. Key steps include:
  • Real-Time Authentication: Verifying that the user is a human being in real-time.
  • Identity Verification: Ensuring the user matches the rightful owner of the presented identity.
These layered methods significantly hinder cybercriminals, even when they possess convincing identity data. iProov notes that even sophisticated attackers struggle to bypass such systems while maintaining realistic interactions.
  • Never sell or share your personal information, regardless of incentives.
  • Be cautious of schemes offering money for personal data, as they can fuel large-scale fraud.
  • Stay vigilant and report any suspicious activity to relevant authorities.
As cybercriminals continue to innovate, businesses must invest in robust security systems, and individuals must take proactive steps to safeguard their sensitive information.
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Mastercard
AI cybersecurity Credit Card Fraud Credit Card hack Cyber Attacks Financial Data Financial Scam Financial Security Mastercard

Preventing Credit Card Fraud in 2024: Tips to Avoid Declined Transactions and Fraud Alerts

 

Credit card fraud is a growing issue, with over 60% of cardholders experiencing attempted fraud in 2023. The use of AI by cybercriminals has dramatically increased, allowing them to open hundreds of accounts daily. Global losses from card fraud reached $33 billion in 2022, with the U.S. accounting for 40% of these losses. 

Although AI is part of the problem, it is also crucial to the solution. Companies like Visa and Mastercard are using AI to enhance their fraud detection systems, reducing false alerts while improving accuracy. Beyond traditional credit card fraud, criminals are now focusing on stealing other types of personal data, such as social security numbers, to commit more sophisticated financial crimes. This shift highlights the importance of comprehensive fraud prevention systems that account for more than just card theft. 

The decrease in false credit card purchases, down 5.4% from 2023, reflects improvements in fraud detection, with Mastercard noting a 20% increase in fraud detection accuracy thanks to AI technology. To minimize the risk of fraud, consumers should adopt strong security measures such as two-factor authentication, biometric passcodes, and password managers. Shopping on reputable sites and using secure payment methods like tap-to-pay can also help reduce exposure to fraudulent activity. Monitoring services and setting personalized fraud alert thresholds can ensure that consumers are notified only when necessary, cutting down on false alerts. 

One key trigger for fraud alerts is changes in shopping behavior, such as buying high-ticket items or frequent purchases from new vendors. These patterns raise red flags, prompting card companies to issue alerts or block transactions. To avoid these issues, consumers can notify their card companies of upcoming travel or large purchases in advance, helping to reduce false fraud alerts. Despite the inconvenience of fraud alerts, they are essential in preventing unauthorized transactions. Consumers are encouraged not to ignore these alerts, even if they seem excessive. 

Experts like Satish Lalchand emphasize the importance of vigilance, as fraud is expected to remain a significant threat. Properly understanding fraud alerts and securing personal data is crucial in staying one step ahead of cybercriminals. To further protect against fraud, individuals should avoid using public Wi-Fi for online transactions and consider freezing their credit to limit unauthorized access. Regularly monitoring credit reports and financial accounts for unusual activity is also essential. Using secure mobile payment methods like tap-to-pay or mobile wallet apps adds an extra layer of protection. 

Financial institutions are continuing to enhance their fraud detection systems, and consumers must take proactive steps to stay vigilant. This combination of personal responsibility and advanced security measures can significantly reduce the chances of falling victim to fraud.
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Ransomware attack
brain cipher Cyber Attacks data security Data Stolen Data Theft Financial Security Olympics Ransomware attack

Ransomware Group Brain Cipher Targets French Museums During Olympics

 

The ransomware group Brain Cipher has claimed responsibility for a cyberattack on several French National Museums that took place during the Olympic Games earlier this month. The attack, which targeted institutions managed by the Réunion des Musées Nationaux – Grand Palais (RMN-GP), allegedly compromised 300 GB of data from a system used to centralize financial information. 

Despite the group’s threat to leak the stolen data, they have not yet revealed the nature of the information. The French Cybersecurity Agency (ANSSI) confirmed it was alerted to the attacks and promptly provided assistance to RMN-GP. ANSSI assured the public that the incident did not affect any systems related to the Olympic Games. Events like taekwondo and fencing, hosted by the RMN-GP, continued without disruption. RMN-GP also confirmed that there were no operational impacts, encrypted systems, or extracted data detected in connection with the attack. 

Nevertheless, the situation remains closely monitored as the countdown to the data leak continues on Brain Cipher’s blog, set to occur at 20:00 UTC. Brain Cipher is a relatively new ransomware group that first emerged in June 2023. Since then, the group has been linked to various cyberattacks targeting different sectors, including medical, educational, and manufacturing organizations, along with Indonesian government servers. Despite their activities, the group has attempted to maintain a controversial public image. 

In one case, they apologized for a cyberattack on Indonesian government servers, claiming they were acting as penetration testers rather than criminals. They even released a decryptor to restore the locked files without being pressured by the government, presenting themselves as ethical hackers or white-hat operators, although their actions and motives remain dubious. The data allegedly stolen from RMN-GP is believed to involve sensitive financial information, but no further details have been disclosed by Brain Cipher. 

The threat of releasing such a large volume of data has sparked concerns over potential exposure of confidential details, which could affect both the organization and the individuals associated with it. As the clock ticks down to the group’s proposed leak, questions are raised about the nature of the stolen data and the potential fallout from its exposure. Cyberattacks like this highlight the growing threat posed by ransomware groups to both public and private institutions worldwide. 

The incident also underscores the importance of robust cybersecurity measures, particularly during high-profile events such as the Olympic Games. Although there has been no impact on the Olympic-related systems, the attack serves as a reminder of the constant vigilance required to protect critical infrastructure and data.
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Financial Security
Ai Data AI technology Cortex-M Cyber Security Cyberattack data security Financial Security

Snowflake Faces Declining Growth Amid Cybersecurity Concerns and AI Expansion

 

Snowflake Inc. recently faced a challenging earnings period marked by slowing growth and concerns following multiple cyberattacks. Despite being an AI data company with innovative technology, these events have impacted investor confidence, causing the stock price to retest recent lows. The company’s latest financial results reflect a continuing trend of decelerating growth, which is compounded by a valuation that assumes far higher growth rates than currently achieved.  

Snowflake’s sales growth has slowed considerably, with its FQ2 revenue growing by just under 29%, down from nearly 33% in the previous quarter. Projections for FQ3 suggest an even sharper decline, with product revenue growth forecasted to rise by only 22% year-over-year. The slowdown in revenue is significant, with growth rates expected to dip to as low as 20% in FQ4. In past quarters, Snowflake experienced higher sequential growth on a much smaller base, indicating that the company’s growth challenges are becoming more pronounced as it scales. The deceleration in sales has not been mitigated by the company’s focus on AI. During the earnings call, Snowflake highlighted the adoption of AI technologies among its 2,500 customers. 

However, these new product features, such as those centered around AI products like Cortex, are not expected to materially impact revenues in the near term. Snowflake’s guidance for FY 2025 does not factor in any significant contributions from these AI initiatives, further dampening expectations for a quick turnaround. Snowflake’s recent performance is further complicated by lingering cybersecurity issues. The company faced a series of cyberattacks where customer data stored on their platforms was compromised, partly due to inadequate sign-on controls by customers. Additionally, the recent CrowdStrike (CRWD) cybersecurity incident has only added to investor concerns about the company’s data security posture. 

Despite the concerns, Snowflake points to growth in remaining performance obligations (RPOs), with commitments reaching $5.2 billion, a 48% increase. Yet, management admits that RPOs may not be the best leading indicator for growth, given that product revenue is declining. The company also contends with multiple top customers operating on flexible, month-to-month contracts, which creates uncertainty in long-term revenue projections. Snowflake remains priced for perfection, trading at 12 times its FY25 revenue target of $3.5 billion, with a fully diluted market cap of $41.4 billion. However, the stock price has already fallen nearly 50% this year, and non-GAAP gross margins are slim, sitting at just 5% in the most recent quarter. 

While Snowflake generates significant free cash flow due to upfront customer payments, it also carries future obligations, further straining its financial outlook. The key takeaway for investors is that while Snowflake continues to innovate in AI and data management, it faces substantial headwinds due to slowing growth, cybersecurity concerns, and a valuation that does not reflect current market realities. Given these factors, potential investors might be wise to stay on the sidelines until there is clearer evidence of a turnaround in the company’s growth trajectory.
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synthetic identities
advanced fraud techniques business trust issues Cyber Security Financial Security fraud tactics generative AI fraud synthetic identities

A Surge in Advanced Fraud Techniques is Eroding Business Trust

 

Fraudsters seem to be perpetually ahead of the curve. Early in 2022, research indicated that one in four online accounts was fraudulent, a figure that has only escalated since. In the auto lending sector alone, losses amounted to $7.9 billion due to a 98% rise in synthetic fraud in 2023. Fraudsters, leveraging generative artificial intelligence, are increasing both the complexity and volume of fake accounts, bypassing verification processes and defrauding businesses.

The surge in stolen and synthetic identities has introduced new challenges. Many businesses are now grappling with fake customers within their systems. For example, financial institutions inadvertently extending credit to synthetic identities and educational institutions dealing with applications from non-existent students. However, efforts to combat these fraudulent activities often unintentionally alienate genuine customers.

Advances in AI have given rise to "super-synthetic" identities, which pose an even greater threat than their predecessors. These identities are entirely self-learning and automated. Instead of relying on brute force, they adopt a more sophisticated approach, engaging in small, human-like transactions over extended periods. AI enables these fraudsters to create convincing replicas of an ideal customer, such as a college freshman seeking financial aid. This methodical activity often evades detection, ultimately leading to successful fraudulent applications for credit.

A fitting analogy from the Dune series illustrates this concept: just as the warriors’ shields deflect high-speed projectiles but allow slow-moving blades to penetrate, security systems tuned to detect mass-produced fake identities may miss the subtler, slower fraud attempts. This nuanced approach enables fraudsters to sneak past defenses undetected, causing significant financial damage.

In response to sophisticated fraud attempts, many organizations have tightened their security measures, sometimes to the detriment of legitimate customers. Overly sensitive systems can result in numerous false positives, leading to customer frustration and abandoned applications. Normal activities, such as using VPNs, abbreviated names, or accessing accounts while traveling, can trigger these security measures, necessitating manual reviews and additional verification steps that drive customers away.

To effectively combat fraud, financial institutions and other industries must focus on building trust. Quickly verifying a user’s identity while minimizing delays and additional security steps benefits both customer satisfaction and business ROI. Implementing trust-based security protocols that assess user actions, rather than just credentials, can help. Factors like geolocation, activity frequency, VPN usage, and behavior on other sites can create a comprehensive trust profile. By leveraging these trust signals, businesses can avoid overly stringent security measures that deter legitimate users. This approach allows for a smoother user experience while maintaining robust security, preventing fraud without compromising customer satisfaction.
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ransomware incident
Cyber Attacks Cybersecurity Crisis Financial Security phishing ransomware incident

Behind the Scenes: How Patelco Responded to the Ransomware Threat


Patelco Credit Union, a prominent financial institution based in Dublin, has been thrust into the spotlight due to a crippling ransomware attack. 

With over half a million members affected, the situation underscores the critical importance of robust cybersecurity measures for financial institutions. In this blog post, we delve into the details of the attack, its implications, and the lessons we can learn from Patelco’s experience.

Patelco Credit Union Ransomware Attack

Four days after a ransomware attack disabled its systems, Patelco Credit Union could not inform its members when banking activities would resume.

The Dublin-based credit union has yet to provide additional information on the security incident that has prevented members from making electronic payments, deposits, or transfers since last weekend.

Customers continued to wait in lines to use bank ATMs on Tuesday, forcing them to visit Patelco locations around the state to withdraw cash, even though they can still not view their statement balances or any other information about their online banking.

The Attack Unfolds

The Lockdown: Patelco’s online banking services ground to a halt as the attack unfolded. Members were unable to make electronic payments, access their account balances, or conduct transactions. The situation escalated rapidly, leaving customers frustrated and anxious.

Phishing Email as the Gateway: Cybersecurity experts suspect that the attackers gained entry through a phishing email. These deceptive emails trick recipients into revealing sensitive information or clicking on malicious links. In Patelco’s case, an unwitting employee may have inadvertently provided the attackers with a foothold.

Encryption and Ransom Demand: Once inside Patelco’s systems, the hackers encrypted critical data, effectively locking the credit union out of its own infrastructure. The term “ransomware” aptly describes their next move: they demanded payment in cryptocurrency in exchange for decrypting the files.

The Response

Member Disruptions: Patelco’s half a million members faced significant disruptions. Unable to check balances, transfer funds, or pay bills online, they turned to ATMs and physical branches. The inconvenience was palpable, highlighting the importance of uninterrupted digital services.

Assets and Vulnerabilities: Patelco manages a substantial $9 billion in assets across its 37 branches. The attack raises questions about the security posture of financial institutions. Are credit unions like Patelco adequately protected? Or are they, as some experts suggest, “soft targets” compared to larger banks?

Transparency and Communication: Patelco responded swiftly by creating a dedicated website to keep members informed. Regular updates on the security breach, restoration efforts, and collaboration with cybersecurity experts demonstrate transparency and a commitment to resolving the crisis.

What can be done

  • Invest in Cybersecurity: Financial institutions, regardless of size, must prioritize robust cybersecurity measures. Regular employee training on recognizing phishing attempts, network segmentation, and incident response plans are essential.
  • Backup and Recovery: Regular data backups and tested recovery procedures can mitigate the impact of ransomware attacks. Patelco’s ability to restore services promptly will depend on its preparedness in this area.
  • Third-Party Collaboration: Patelco’s engagement with external cybersecurity experts is commendable. Collaborating with specialists who understand the evolving threat landscape is crucial.

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