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A new report finds that fraud activity is surging, while Landry’s Inc. says it has uncovered malware on its point-of-sale system and removed it.
Identify fraud is on the rise, finds the 2016 Identity Fraud Study released Tuesday by Javelin Strategy & Research.
The Pleasanton, Calif.-based research firm found that the number of identity-fraud victims increased 3% in 2015, the second highest level in the past six years.
Accounting for some of this increase is the advent of EMV chip card transactions in the United States. Because EMV relies on dual authentication between the credit or debit card and the point-of-sale terminal, it significantly reduces the prospect of counterfeit card fraud. Criminals, who always seek the easiest path to their objectives, turn to other forms of fraud. New-account fraud, in which criminals attempt to create an online account using stolen bits of personal data, increased 113% in 2015, accounting for 20% of all fraud losses.
The study canvassed more than 5,000 respondents between Oct. 15 and Nov. 2.
In related news, Landry’s Inc., a Houston-based restaurant chain with more than 500 locations across 40 brands, recently said it uncovered malware on its POS systems at several locations, including restaurants, spas, and other venues it operates.
Announced last week, the breach affected an undetermined number of cards used at locations across the nation during two periods in 2014 and 2015: May 4, 2014-March 5, 2015, and March 16-May 4, 2015.
Landry’s, purveyor of brands like McCormick & Schmick’s, Morton’s, and Vic & Anthony’s, says hired a cyber-security firm to investigate following a report of suspicious activity about payment cards that had been legitimately used at some locations.
Criminals were able to install malware on the chain’s POS system. It had been designed to capture cardholder names, card numbers, expiration dates and a verification code.
In response, the malware was removed and Landry’s began using point-to-point encryption.
