Payment fraud

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

Businesses should not only focus on securing payments that come through, but also pay attention to account creation and logins to prevent them from becoming additional vulnerable points of exploitation, writes Justin Lie, CEO of CashShield.

Visa research contends consumers are interested in biometrics and consider it superior to traditional usernames and passwords.

With the holidays fast approaching, the attention of watchdogs, regulators, merchant acquirers and processors needs to be on both the bottom line and the more sophisticated forms of online fraud like transaction laundering, writes Ron Teicher, CEO and founder of EverCompliant.

In the new role, Kenneth Montgomery will lead the Fed’s efforts to reduce fraud risk and improve the security and resiliency of the U.S. payments system

Card usage drops off fast after a false positive. In many cases, two false positives cause consumers to abandon a card permanently.

Most merchant processors’ current point of sale software allows you to send the credit card information once and you capture a token versus the actual credit card number, writes Michael Lewis, CIO of Copper State Communications.

Neither the acquirer processing the payment, nor relevant regulatory bodies ever know that these payments are actually for illicit goods, making transaction laundering particularly dangerous and far-reaching, writes Ron Teicher, CEO of EverCompliant.

By inserting the issuer into the dispute process at the outset and arming them with the necessary robust data to prove both customer identity and intent of sale, we can prevent the loss of millions in sales, writes Matthew Katz, CEO of Verifi.

A week before he is due to resign, CFPB Director Richard Cordray sent a letter to 29 CEOs at banks, credit unions and other financial companies, urging them to help consumers exert more control over credit cards, debit cards and other payment methods.

By employing a multilayered approach to mobile security that combines device authentication with the latest user identification measures, retailers can establish maximum trust not only with their users, but also in the device being used to transact with them, writes Michael Lynch, chief strategy officer for InAuth.

The Consumer Financial Protection Bureau filed a lawsuit Wednesday against Freedom Debt Relief and its co-CEO for allegedly deceiving consumers.

For most retailers heading into this year’s holiday-season sales crunch, the epic Equifax data breach was only the latest in a series of escalating threats that are having a profound effect on the way they handle payments.

China enacted sweeping changes to a business competition law to address fraud in the e-commerce industry, which is plagued by malfeasance ranging from fake positive reviews to merchants goosing sales numbers.

Neural network systems — which try to emulate the human brain — will become increasingly important as the stolen identities from the recent Equifax breach and others start surfacing in the coming years on fraudulent payment card or loan applications.

Fraudsters deliberately target the holiday season, with more than half of annual fraud income taking place between September and December and chargeback rates increasing by up to 50% at peak shopping periods, writes Suresh Dakshina, president of Chargeback Gurus.

Now two years on from the U.S. EMV liability shift, chip cards are commonplace in American wallets. But the benefits of EMV cards — a longer five-year lifespan and a reduced need to reissue in the event of fraud — have muted the demand for new cards.

If you’re an omnichannel merchant, it’s critical to analyze fraud separately across your brick and mortar, online and mobile channels, in order to focus your information security resources where they are most needed, writes Michael Lynch, chief strategy officer for InAuth.

The lowest rates could be a sign the provider is not investing in itself, not being entirely transparent, or not providing a wide enough range of services for their clients, writes Drew Sementa, CEO of Tidal Commerce.

Card testing is like thieves “playing the slots” with stolen card numbers to see what they can get from them, writes Rafael Lourenco, executive vice president of ClearSale.