Fraud detection

The company angered hundreds of customers when its software flagged their accounts as suspicious and suddenly cut them off, according to a ProPublica report. The episode illustrates the challenge shared by fintechs and banks of rooting out scammers without being overzealous.

Financial firms can minimize the damage by understanding where key threats lie, educating employees and customers about phishing scams, and breaking down silos between compliance, fraud and security teams.

The card network is connecting its Enhanced Authorization system with products from Accertify, Microsoft and Riskified, providing Amex with more data at the time of the transaction.

The companies are working to thwart abuse on the Honey platform, a deal-finding system that PayPal acquired in 2019.

As both e-commerce and payment fraud accelerate, Sift is strengthening its digital protection platform by acquiring Chargeback, a real-time dispute management provider.

The purchase is one of several moves the payment company has made to improve its identity expertise.

The San Francisco-based technology provider raised $70 million in a Series C round this week, bringing its total funding to $114 million.

Data from Sift and the FBI show how methods scammers adapted during the pandemic.

Transaction fraud and money laundering are typically siloed areas within banks, but both require a keen eye to finding the right patterns.

CMSPI estimates that retailers lost about $30 billion in potential online sales last year from e-commerce transactions that were declined for a variety of reasons including fraud, insufficient funds, technical problems and errors.

Forter has joined the Adobe Exchange Partner program, enabling Magento Commerce merchants to reduce false declines and block fraud attempts.

The abrupt shutdown of retail a year ago led to a rise of digital shopping — and fraud. And the most tech-savvy consumers may be the most vulnerable, according to TransUnion data.

The abrupt shutdown of retail a year ago led to a rise of digital shopping — and fraud. And the most tech-savvy consumers may be the most vulnerable, according to TransUnion data.

Michael Moeser, senior analyst at PaymentsSource, talks to Shai Cohen, senior vice president of global fraud solutions at TransUnion, about the rapid evolution of fraud in the digital era.

Since romance frauds generate more than 10 times the money for scammers per event than other types of fraud, 2020 saw a substantial boost in the use of this tactic.

Forter is strengthening its e-commerce fraud protection service by integrating its authorization tool with a Capital One decisioning data product that will provide merchants with a direct connection to issuing banks to share Forter insights.

David Heun, associate editor of PaymentsSource, talks to Sara Hafner, head of financial partnerships at Forter, about how the growth of online shopping has raised the stakes for fraud prevention.

David Heun, associate editor of PaymentsSource, talks to Phillip Dunkelberger, president and CEO of Nok Nok Labs, about the latest developments in data security. Nok Nok is a founding member of the Faster Identity Online alliance, or FIDO.

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.

Fraudsters have increasingly targeted financial services, online dating sites and social media since the end of the holiday season.