Page 8 - GS240102

ReadersSpeak

Be proactive about disposable email domains

AtData Vice President of Fraud & Data Strategy Diarmuid
Thoma sent in the following perspective, alerting us to the
need for battening down the hatches on disposable email
domains:

"Over the past five years, there has been a significant
surge in the use of high-risk email domains, including an
average 25 percent year-over-year increase," he wrote. "Ac-
cording to AtData’s proprietary network, roughly 100,000
new high-risk domains emerge daily. This trend is driven
by the prevalence of spam, unwanted newsletters, and pri-
vacy concerns, leading many consumers to adopt dispos-
able email addresses for streamlined communication and
Holiday spending reality check enhanced purchase privacy.

alletHub Editor John Kiernan, shared high- "While consumer use of disposable emails is noteworthy,
lights from a recent consumer survey the the more pressing issue lies in fraudsters increasingly in-
company conducted following the year-end corporating disposable addresses into their black hat tac-
W holiday season. "Nearly one-third of people tics. Approximately 10 percent of email traffic is now clas-
regret some of their holiday purchases," he stated. "People sified as high risk, posing a challenge for risk profession-
generally expect to spend a lot during the holidays, but als tasked with promptly assessing email address validity.
the stakes were higher than normal this year due to infla- Human capabilities alone fall short in instantly categoriz-
tion and record-high interest rates. Roughly 74 percent ing, cross-referencing, and validating unusual domains.
of people reported that inflation affected their holiday
spending more than they anticipated." "Fraudsters exploit disposable email addresses to main-
tain anonymity, circumvent verification, engage in tem-
In addition, one in four survey participants said social me- porary communications, conduct phishing attacks, and
dia impacted their holiday spending this year. "This un- evade email bans. They often create fraudulent domains
derscores the importance of influencers in today's econo- with subtle variations from legitimate ones. Risk teams
my and the potential for entertainment to turn into a drain are particularly concerned about spam, bulk registrations
on your finances," Kiernan wrote. "It's very easy to make and potential revenue loss. Fraudsters leverage disposable
impulse purchases when you're scrolling through social domains to sign up for multiple online services or create
media." numerous fake accounts simultaneously, contributing to
spam propagation, malware dissemination and other ma-
The survey also found that nearly one in four Americans licious activities.
will need six to 12 months to pay off holiday debt, and
most people will require at least one to three months to pay "As we anticipate a further rise in these numbers in 2024,
down what they owe. "The fact that so many people carry risk management teams must enhance their capabilities
holiday debt well into the new year means the total cost of to identify and eliminate high-risk and disposable do-
holiday purchases will continue to grow for months as in- mains at scale. Given the brief lifespan of most high-risk
terest accrues," he noted. "The average credit card interest domains—typically lasting less than a few weeks—fraud
rate is currently 22.77 percent for existing accounts with teams must react swiftly. Real-time algorithms that cross-
finance charges, which is a record. It's in everyone's best reference multiple profile variables and assess domain
interest to pay off holiday expenses as quickly as possible." sources concurrently will be essential in addressing this
vulnerability. This proactive approach is crucial in the risk
Also, 68 percent of respondents believe 2024 will be better mitigation toolbox, playing a pivotal role in reducing ex-
for their finances than 2023. "People weren't so optimistic posure to fraud."
this time last year, when the Fed was more likely to raise Do you have views to share?
rates than cut them, and we can largely thank cooling in-
flation and stubbornly low unemployment rates for that Have you checked in with your merchant customers about
change," Kiernan added. "We can't just sit back and wait how consumer spending affected their balance sheets?
for a better year, though. Most people need to make some Did 2023 end on a high note for them?
financial improvements, and resolution season is the per-
fect time to start." Why not pen a short article, up to 300 words, about this
or another compelling issue or development in payments
for this page? We will welcome your perspectives at green-
sheet@greensheet.com.

8