Cybercrime , Fraud Management & Cybercrime , Fraud Risk Management

How Refund Fraud Changed the Cybercrime Landscape

The fraud teams at many enterprises overlook refund fraud because it is considered part of customer service, says Brett Johnson, a consultant on cybersecurity, cybercrime and identity theft who was a central figure in the cybercrime world for over 20 years.

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As a result, he says, there has been a huge spike in refund fraud in recent years.

"Refund fraud has become so big that it has changed the dynamic of cybercrime as we know it today. Traditionally, cybercriminals would start their career by stealing credit card details. That has now changed. Cybercriminals now start with refund fraud because it is guaranteed profit," he says.

In a video interview with Information Security Media Group, Johnson discusses:

• How refund fraud has evolved;
• The challenges of dealing with refund fraud;
• Why fraud teams need to be involved to curb refund fraud.

Johnson, referred to by the United States Secret Service as "The Original Internet Godfather," was a central figure in the cybercrime world for over 20 years. He built and was leader of ShadowCrew, the precursor to today's darknet markets. Johnson was instrumental in developing many areas of online fraud while helping design, implement and refine identity theft, account takeover fraud, card-not-present fraud, IRS tax fraud and other social engineering attacks, breaches and hacking operations. Today, Johnson works as a cybersecurity consultant and public speaker.