McDonald’s partners with Sift to block rising fast-food fraud

Though the lower-ticket sales in fast food traditionally weren’t a large fraud magnet, that’s changed as fraud expanded to new channels during the pandemic.

McDonald’s has announced a partnership with fraud-prevention service Sift to streamline mobile ordering and payments outside the U.S. and protect against new scams targeting restaurant-delivery services, according to a Wednesday press release.

The fast-food giant will adopt Sift’s technology for mobile order-and-pay features services it's introducing and expanding in Europe, Asia and Africa, Sift said.

McDonald's has offered mobile order and pay in several markets since 2017, and San Francisco-based Sift’s solution is not currently deployed in the U.S.

McDonald'sBL
Bloomberg News

In other markets, Sift will streamline the ordering process for customers using the McDonald's app. The San Francisco-based company's technology will deter fraudsters from intercepting payment information.

Sift recently documented a 14% increase in the fraud rate for restaurant apps and food-delivery services globally during the fourth quarter of 2020.

One prominent scam targeting food-delivery providers emerged this year in which criminals offer discounted restaurant and grocery app deliveries on the Telegram messaging service, capturing consumers’ payment card information, Sift said.

For reprint and licensing requests for this article, click here.
Fraud detection
MORE FROM AMERICAN BANKER