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Overview of the 2025 Cashless Security Report

The year 2025 marks the release of the latest Cashless Security Report by Cacco Inc., known as Japan's leader in fraud detection services, and Link Inc., offering various PCI DSS compliant services. This report, a culmination of factual data regarding credit card breaches and e-commerce fraud trends, aims to enhance security in online transactions. In this comprehensive analysis, we take a closer look at key findings from the report and their implications for online retailers and consumers.

1. Surge in Card Data Breaches: A Changing Landscape

In 2024, there was a noteworthy increase in the awareness and reporting of credit card data breaches. Historically, notifications from card companies and payment processors dominated this landscape; however, now reports from law enforcement agencies account for a significant 35.1% of breach discoveries. A concerning trend emerged from 13 particular incidents, revealing a commonality in the origins of these breaches, primarily linked to manipulations that started back in 2021. Many breaches were attributed to vulnerabilities in the EC-CUBE system, underscoring the necessity for merchants to address unpatched flaws and heightened scrutiny concerning tampering. Various incidents indicate that prolonged data exposure periods are a growing concern, urging merchants to implement necessary updates and patches diligently.

2. Persistent E-commerce Fraud: Alarming Statistics

The financial impact of credit card fraud in 2024 reached a staggering ¥55.5 billion, with over 90% of incidents occurring on e-commerce platforms due to stolen card numbers. The backdrop to this increase includes a rise in phishing attacks, credit card master attacks, and a surge in infostealer attacks that extract users' input information. Moreover, cases of account takeovers on e-commerce sites have doubled, leading to an escalation of fraudulent orders, hence heightening urgency for enhanced fraud detection measures and security protocols.

3. Balancing Fraud Prevention and Revenue Generation Through EMV 3-D Secure

An investigation conducted by YTGATE highlighted a troubling decline in approval rates post-EMV 3-D Secure implementation—from a robust 95% down to approximately 85%. More than 65% of consumers reported experiencing authentication errors, worrying industry insiders as eight out of ten merchants noted a rise in shopping cart abandonments. Despite these issues, the fraud prevention measures introduced have undoubtedly improved, and it’s anticipated that by sharing device information with issuers, merchants might see a boost in approval rates. Continuous efforts are being made towards striking a balance between safety and user convenience in digital transactions.

4. The Rise of Securities Account Takeovers and Voice Phishing Targeting Corporations

According to data from Japan's Financial Services Agency, from January to July 2025, unauthorized access to securities accounts reached 14,069 incidents, with 8,111 accounts involved in fraudulent transactions, summing an alarming total loss of ¥620.5 billion. The predominant attack method involved stealing authentication details to manipulate the market for personal gain, highlighting the role of phishing and malware in these breaches. Despite the trend towards mandatory multi-factor authentication leading to a gradual decline in attempted breaches, the losses continue to escalate. Concurrently, there has been an uptick in corporate targeting through AI-generated voice phishing, necessitating heightened awareness and preventive measures.

Conclusion: A Call to Action for Online Security

The Cashless Security Report serves as a vital resource for all stakeholders in the digital payment ecosystem. It highlights pressing risks and encourages businesses to adopt more robust security practices. Both Cacco and Link are committed to combating evolving threats in online fraud and securing a safe, trusted environment for e-commerce transactions. Enhanced awareness and proactive measures by retailers and consumers alike can significantly mitigate risks associated with digital payments.

For those interested in delving deeper into the findings of the Cashless Security Report 2025, access it through the following links:

• - Cacco Report
• - Link Report

The insights gathered are crucial for understanding the current landscape of online fraud and implementing essential security practices for the benefit of all participants in digital commerce.