Jumio Warns WiFi Fraud Targets Public Hotspots

PALO ALTO -- Jumio Inc, the next generation credentials management company, are calling for consumers to be wary which Wi-Fi network they are connecting to at their local coffee shop. The danger of fraudsters running bogus networks with the same name as the real Wi-Fi network is revealed in new research from Jumio in their soon to be released white paper, “The Fraudsters Playbook.”

In this white paper Jumio lifts the lid on five common tricks of the trade that fraudsters use to steal identities to enable them to go on to commit fraud.

David Pope, Director of Marketing and payment fraud expert at Jumio, asserts “Businesses and consumers alike must be aware that there are many disreputable networks posing as official networks – their only true purpose is to steal the personal details of unsuspecting Wi-Fi users.”

How does it happen?

One of the fraudsters’ latest ploys to steal identities is to sit in a coffee shop that offers free Wi-Fi to its customers and then use his or her laptop to broadcast a wireless network that’s named exactly like the venue’s official Wi-Fi. The fraudster will use that as a launching point to “get to know” their ID theft victim. Here’s how the fraudster does it:

1. The fraudster sits in a coffee shop using his or her laptop to create a Wi-Fi hub that’s identically named to the venue’s legitimate Wi-Fi hotspot.

2. Customers and coffee lovers log onto the fraudsters hotspot, which contains malware that allows the fraudster to access their machine whilst he is sitting a scant few metres away.

3. The fraudster accesses the customer’s online accounts by hacking their password using cryptography tools such as Cain & Abel, all while he sips a latte and smiles over at his victim.

4. The Customer leaves the coffee shop and the fraudster moves onto his next coffee drinking victim, all the while amassing access to online accounts for banking, retail, and social media, ready for exploitation.

Current fraud stats show that the US economy loses in excess of $100 billion annually to fraud, a pattern which is mirrored in other countries such as the UK. The UK economy lost £52bn in 2012 from fraud, 41% if which was accredited to online attacks.

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