30 November 2015


Alexander Peschkoff - TEDIPAY

114Posts 449,411Views 523Comments

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.

The cost of identity theft equals Google's net income

15 June 2012  |  3812 views  |  0

Every second, 175 fraud attempts take place. Such attempts are no longer about some spotty teenagers having fun - most of the fraud is now committed by well-funded, well-organised (and in some cases - government-sponsored) professional teams. Cybercrime is big business now. Exactly how big is it?

Most of online fraud, one way or another, revolves around identity or data theft. The main end-use of the stolen information - payment fraud. The true cost of such fraud globally is US$10bn - that equals Google's net income. At the current growth rate, payment fraud in 2014 could equal 5% of Saudi Arabia's GDP.

Where does the bulk of that payment fraud come from? From the weakest link. Cheetah is the fastest animal in the world, yet it only hunts weak or young animals: cheetah suffers a minor brain damage when running at top speed, hence it only goes for an easy prey. So do fraudsters.

The USA accounts for almost half of card fraud, yet just a third of the transactions volume. There is a simple reason for that: magnetic stripe cards are an easy target for both physical and online fraud.

That is why Visa and MasterCard are planning to move US credit cards to "Chip-n-PIN" by April 2013. When that happens, where will the fraud cheetahs move to? Online and mobile payments (and banking).

However, if "Chip-n-PIN" protection is extended to the Internet and mobile phones, where will the fraud then migrate to


Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Latest posts from Alexander

Fancy a quickie?

21 November 2015  |  1129 views  |  0  |  Recommends 0 TagsInnovationStart upsGroupInnovation in Financial Services

You must be kidding me

14 November 2015  |  1183 views  |  1  |  Recommends 1 TagsInnovationStart upsGroupInnovation in Financial Services

Apple Pay and TfL tidbits

20 July 2015  |  1792 views  |  1  |  Recommends 0 TagsMobile & onlinePaymentsGroupInnovation in Financial Services

Alexander's profile

job title CEO
location London
member since 2012
Summary profile See full profile »
I am the co-founder and CEO of TEDIPAY, the company that is bringing to the market a game-changing platform for secure mobile transactions.

Alexander's expertise

What Alexander reads
Alexander writes about

Who's commenting on Alexander's posts

Pierre Galeon
Ketharaman Swaminathan
Andrew Rothwell
Martin cox
Sunil Gokani
Matt Scott
Dave Sanderson
Robert Avery
Lu Zurawski
Chetan Ghadge
Paul Love