It is one of the opinions related to the shutdown of
hosting provider McColo Corp. It was observed that one month after McColo went offline, spam volumes were nearly back to the levels seen prior to the company’s take down by its upstream Internet providers. However, as one fraud expert noted spam wasn’t the only issue held by McColo Corp. More evidence proved that retail fraud dropped significantly on the same day start to appear. In fact Ori Eisen, founder of 41st Parameter observed that about a quarter of a million dollars worth of fraudulent charges the company faced everyday came to a halt.
Also it was analysed that at least two of the largest retailers 41st Parameter serves reported massive declines and decrease in fraud rates directly following McColo’s termination.
So some experts connect a drop in fraudulent activity linked to purchases of high-value merchandise with stolen credit and debit cards with McColo’s shutdown o November 11.
Eisen’s opinion based on 41st Parameter analyses. And the company is competent in that department because it provides ant-fraud consulting to a number of big retailers and banks.
He thinks that many fraudsters may have been using McColo to funnel their Internet connections when attempting to purchase goods from retailer sites. Still it is unsure whether the decrease in retail fraud is related to the McColo situation however many online banks will check to see whether the customer’s Internet address is coming from a location already associated with the customer’s user name and password, or at least from geographic location that is close to where the customer lives.
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