Payment fraud

There’s a widely held belief that clamping down on fraud in one area will lead to it popping up somewhere else. There is some truth to this — fraudsters favor the points of least resistance. But there are also major exceptions.

By taking advantage of the peak sales periods with higher-than-usual transaction volumes such as Valentine’s Day, criminals can use legitimate payment and shipping platforms without raising fraud alerts, writes Ron Teicher, CEO of EverCompliant.

ATM jackpotting is a crime in which technology is manipulated to get the machine to dispense all the money it has. Unlike most cyber crime, it requires physical access, which increases the chances of getting caught.

"Ring-fencing" is designed to reduce risk, but will lead to major changes in transaction infrastructure and open a temporary door for fraudsters, according to Marcus Hughes, head of strategic business development at Bottomline Technologies.

The results suggest that even as financial institutions implement more sophisticated fraud-mitigation techniques, they have not been keeping pace with criminals.

This trend will continue until banks have addressed key vulnerabilities, according to John Gunn and David Vergara of VASCO Data Security.

Despite some declines, payments fraud remains a major concern for credit unions. Here's how experts suggest tackling the problem.

One New Jersey credit union is starting 2018 with an unexpected crash course in fraud prevention, but there may only be so much anyone can do to curtail the problem.

Nano Financial will offer new technology to Commerce Bank's commercial customers as it considers ways to license it to other financial institutions.

There are a number of tactics and solutions organizations can employ to shut down the favored methods of fraudsters, including the use of bots and device compromise, writes Michael Lynch, chief strategy officer at InAuth.

The proliferation of wearable devices, their increasing sophistication, the uptick in wearable-optimized applications and the willingness of consumers to trade PII for convenience is converging to create a perfect storm of risk that has the potential to threaten commercial enterprises, writes Michael Lynch, chief strategy officer at InAuth.

Companies like Visa and Mastercard make decisions about security in secrecy, without enough input from banks and merchants.

Account takeover's harder to quantify than payment fraud because it has so many elements and downstream impacts, writes Kevin Lee, trust and safety architect at Sift Science.

With their millions of customers, large retailers like Forever 21 have typically been the hardest hit, writes Mark Cline, a vice president at Netsurion.

Payment fraudsters are agile and adaptive, and they change the items they target depending on what will be easiest to steal and resell, writes Michael Reitblat, CEO and founder of Forter.

Seeking a way to facilitate higher-value contactless transactions, the Bank of Cyprus plans to issue an EMV card deploying biometric authentication to replace a PIN code.

Cybersecurity systems, as sophisticated as they are, are clearly not doing the job. And maybe they never will, given that in the end the effectiveness of those systems can be overridden by workers inside the organization, writes Tal Vegvizer, director of research and development for Bufferzone.

With the increased demand for heightened security and the increased costs, there will also be a growth in attacks from nation-state actors, writes Antwayne Ford, president and CEO of Enlightened.

Getting the most detailed picture calls for a multilayered approach that leverages the most effective elements of in-house and outsourced solutions, writes Monica Eaton-Cardone, COO of Chargebacks911 and CIO of its parent company Global Risk Technologies.

By deploying voice biometrics, organizations including large banks, government agencies, telcos and retailers can not only make the process of authentication easier, but also can protect their customers’ identities from being compromised in the case of a hack, writes Brett Beranek, director of product strategy at Nuance.