Report: Corporate Brand Hijacking Common On Web
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By Reuters
12:55 PM EDT Mon. Apr. 30, 2007
Corporate brands face multipronged assaults from fraudulent online attackers, according to a report published Monday that quantifies the scope of the most common threats.
MarkMonitor, which supplies Internet brand protection
services to companies, said its new "Brandjacking Index" found
"cybersquatting" -- in which illicit sites usurp popular
trademarks -- false association, phishing and clickfraud as
major threats.
A four-week survey of public Web sites completed early in
April found cybersquatting posed the greatest threat to brands.
Phishing -- the criminal use of e-mail to trick consumers into
divulging passwords, credit cards and other personal details --
and domain "kiting" -- the rapid registering and dropping of
similar- sounding Web site names -- are on the rise.
The study tracked daily mentions on 134 million public Web
records for the world's top 25 brands, along with major brands
from eight industrial categories such as autos, apparel, food,
food and high-tech. The study ran from March 9 to April 6.
MarkMonitor found major brands suffered, on average,
286,000 examples of cybersquatting during over the four-week
long survey, far and away the most common abuse detected.
Clickfraud -- or siphoning off consumers via fake
pay-per-click ads -- was identified 50,743 times, while
e-commerce fraud occurred 21,093 times and kiting 11,015. These
figures represent the four-week average for each brand.
Frederick Felman, MarkMonitor's chief marketing officer,
said in an interview that cybersquatting is a starting point
for other forms of abuse, including search marketing tricks
designed to pull traffic away from reputable Web sites.
"Brand-holders face a double whammy: The volume of these
abuses is significant, while abusers are becoming alarmingly
savvy marketers," Felman said.
MarkMonitor said media and Internet companies are the
biggest targets of cybersquatting, while banks and other
financial services are the mostly likely victims of kiting and
phishing.
That media and Internet brands are the most attractive
targets -- drawing 31 percent of what MarkMonitor collectively
terms "brand abuse" -- reflects the fact that 10 of the top 15
sites on the Web fall in this category.
The number of phishing attacks grew 104 percent during the
month of March from the same month in 2006, the survey found,
with more than 229 brand name companies, mostly financial
services firms, coming under assault.
Financial services made up 41 percent of all phishing
attacks in the first quarter of 2007, up from 29 percent in the
first quarter of 2006. The latest quarter was the first time
banks had outpaced online auctions such as eBay Inc.
as targets. Auctions suffered 36 percent of phishing attacks.
By: Eric Auchard
Copyright 2006 Reuters.
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