Recent Report On Online Payment Account Takeover Attacks

Apr 17, 2017

Research in the field shows there has been a spike in account takeover (ATO) attacks for online payment accounts with the Apparel and Food and Beverages industries. The highest spikes in fraud at 69.9% and 49.8% respectively was between Q4 2015 to Q4 2016.

According to the 2017 Fraud Attack Index, spike followed the October 2015 EMV chip adoption deadline in the US. A 79% increase in the risk of fraud for domestic holiday orders was registered, according to the study conducted by a fraud prevention services company.

Account takeover is still a problem for the CNP payments industry. The research found out that individual merchant accounts were being less attacked from 2015 to 2016, however, takeovers of online payment accounts such as PayPal, Apple Pay, Amazon Payments grew 131% in 2016 as compared to 2015.

To open reliable and secure online payment accounts, turn to, the #1 high risk merchant account processor in the US. EMB boasts an A+ rating with the BBB and A by Card Payment Options and is one of Inc. 500’s Fastest Growing Companies of 2016. In partnership with Verifi and Ethoca, EMB offers unmatched fraud prevention and protection opportunities to merchants of any type and size.

According to the authors of the report, the reason for spike may be associated with increased general usage of alternative payment options mentioned above.

Based on the report, the overall fraud attack rate grew 8.9% in 2016, which is now continuing with a moderate but steady growth in fraud as more online transactions are being completed and EMV continues to roll out.

When it comes to the Apparel industry, it saw a 70% increase in the rate of fraud attacks. Attack rates also rose 49.8% in the Food and Beverages industries. Attacks on digital goods providers and the Travel and Hospitality industry decreased significantly.

According to CEO of the above-mentioned anti-fraud technology providing company, the significant growth in fraud attack rate in the Apparel industry may be associated with the new fraudsters who’ve joined the online criminal community after EMV adoption in the US and maybe are choosing a sector they make sense of. Additionally, the increase may also stem from the fact that genuine shoppers feel more comfortable about buying fashion items online and returning as necessary.


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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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