The Fraud That 85 Percent Of Fraud Detection Systems Miss

PYMNTS

The tools we use to detect, score and prevent fraud — particularly card-not-present fraud in digital transactions — have improved exponentially in the last half-decade. The Rising Threat of Synthetic Identity Fraud.

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Why AI Is MIA In Most FI Fraud Departments

PYMNTS

In the old days, forged checks were the biggest problems that bank fraud departments had to manage. It is no wonder that fraud prevention is one of the problem areas that FIs hope artificial intelligence (AI) can help resolve. percent of them have adopted true AI systems.

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Satisfaction With Anti-Fraud Systems Linked To Platform Strategy

PYMNTS

Unfortunately, platforms that are designed to be seamless are also often attractive targets for fraud. It’s the users who often become the victims in stringent security measures when fraud detection is too broad. Payments are the backbone of many digital platforms.

Mastercard Launches Early Detection Fraud Fighting System

PYMNTS

As of today, Mastercard is releasing one — it announced its new Early Fraud Detection System. With the system, issuers can now receive advance alerts about cards and accounts that are facing a higher risk of fraud due to involvement or exposure in an earlier data breach.

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Mapping Fraud’s DNA

PYMNTS

Payments and commerce fraud has its own ecosystem, one that includes criminals, servers and other computing devices, IP addresses, compromised payment cards and stolen personal data, and even houses and other physical locations. The Biology Of Fraud.

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Digital Application Fraud In The Spotlight

PYMNTS

With workflows disrupted and personnel dispersed, a rise in application fraud is being detected. The alarming sophistication of these illegal operators has necessitated the most advanced tools in the fight against this type of “sleeper fraud.”.

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Fraud Decisioning Orchestrates A Response

PYMNTS

What’s clear is that fraud decisioning solutions have never been more necessary, as cybercrime enters a new phase of sophistication, diabolical creativity and global scale. Bottom line: Fraud losses are expected to hit $48 billion annually by 2023 – more than double the 2018 losses.

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Why Banks’ Immune Systems Need Both AI And Human Boosts

PYMNTS

Instead, a deeper understanding of fraud — down to its genetic outline — is needed to be truly effective in fighting it. Fighting fraud is often a group effort, as can be seen in several global markets. However, banks are not the only ones joining forces to tackle fraud.

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The B2B Payments Fraud Threat Of Internal Employees

PYMNTS

As Travelex works to regain control of its systems, restore operations and mitigate any future fallout from the incident, the cyberattack is yet another reminder that one company’s cyber vulnerabilities can have far-reaching effects throughout the B2B supply chain.

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Making P2P Payments Fraud-Free

PYMNTS

While person-to-person (P2P) payment solutions and real-time payment platforms are making the quick exchange of funds possible, fraudsters also see an opening to exploit these systems’ vulnerabilities. Around the World of Digital Fraud. Protecting Credit Union Members from P2P Fraud.

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How False-Positives Complicate The B2B Payments Fraud Fight

PYMNTS

Retailers focused on combating fraud have credit cards in the cross-hairs of their efforts. But ramping up the war on card fraud can introduce a new risk to companies: false positives. Machine learning] will help with generating new rules based on previous fraud or non-fraud decisions.

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Hong Kong’s New Faster Payment System Marred By Fraud Claims

PYMNTS

Hong Kong’s Faster Payments System (FSP) has only been live for a few weeks, but already it’s facing claims regarding allegations of fraudulent use. Reports said the HKMA has stressed that these instances of fraud are not related to a security shortfall within FPS itself, however. Financial institutions – including HSBC , Bank of China and Hang Seng Bank – are involved in the fraud claims, as are eWallet service providers AlipayHK, Tap & Go and O!

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eCommerce Fraud Presents A $12 Billion Problem

PYMNTS

With the coronavirus putting eCommerce front and center, it has unfortunately been joined by its cousin: online retail fraud. percent of all eCommerce fraud , is still account takeover. Backdoor file activity, unlike other fraud attack methods, has no pattern.

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Deep Dive: Unsupervised Machine Learning Steps Up To Fight Fraud

PYMNTS

Many FIs and merchants that have fallen victim to fraud traditionally respond by assessing the damage, pinpointing how the attack succeeded and implementing new measures to prevent similar schemes from happening again. Fraud losses hit $14.7

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Fraud Decisioning And Friendly Friction

PYMNTS

Many retailers are trying to balance enhanced safety measures with smooth customer experiences, with 26 percent of those considering fraud protection as a top priority also putting the need to provide friction-free checkouts at the top of their lists. Merchants in this category seem to be putting positive friction to use,” according to the March 2020 Merchant Fraud Decisioning Playbook , produced by PYMNTS and sponsored by Simility.

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The Big Spike In ‘CEO Fraud’

PYMNTS

As for the areas where scammers managed the biggest hits, business email compromise (BEC), confidence/romance fraud and spoofing were the top three types of crime in terms of monetary losses. BEC fraud does not respect seniority, and it pays exceedingly well.”.

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Deep Dive: Orchestrating Complex Authentication And Fraud Decisioning

PYMNTS

This creates new security challenges as firms must learn to centrally manage their fraud protection methods while also gauging threats across many different channels. Omnichannel Fraud Protection.

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How FinTechs Combat Fraud Risk With Automation

PYMNTS

Fraud, for instance, is an ongoing threat, with nearly three-fourths of U.S. financial institutions reporting growing losses attributed to online and mobile fraud. Quaine said the company’s systems, for instance, “are programmed to handle the payments.”

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FICO Launches Fraud-Fighting AI Tech

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Falcon X is intended to help pinpoint and probe potential fraud and other financial crimes. “Criminals have exploited the rigid infrastructure that underpins our global financial system.

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Mastercard Targets Federal Payment Fraud With Oversight Systems

PYMNTS

Mastercard is teaming up with Oversight Systems to help government agencies detect payment fraud, according to a new announcement. 25) that it will collaborate with Oversight Systems to offer government agencies their collective data analytics and fraud detection solutions. The solution will enable the agencies to identify suspicious purchases and more quickly detect potential fraud.”.

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Can AI Help Fix A Broken AML System?

PYMNTS

False positives — instances of potential but uncertain fraud — can significantly gum up the works when it comes to anti-money laundering (AML) efforts, leading to friction and massive manual review that can eat up costs and cut into profits. We all know the system is broken,” he said.

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GIACT Ramps Up Fraud Fight Using Equifax Analytics

PYMNTS

Data analytics company Equifax is teaming up with identity verification solutions provider GIACT Systems to help joint corporate customers mitigate the risk of fraud.

Visa Chip Cards Reduced Counterfeit Fraud By 87 Pct

PYMNTS

Visa announced that since their inception, chip cards have reduced counterfeit fraud by 87 percent. . Counterfeit fraud dollars for all U.S. Also down were overall card-present fraud rates. VISA chip card counterfeit fraud credit cards fraud News Security Visa What's Hot

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Metro Bank Hit By More Fraud Probes

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’s Metro Bank on behalf of investors concerned that the institution committed securities fraud. According to Pomerantz, the probe “concerns whether Metro Bank, and [certain officers] and/or directors, have engaged in securities fraud or other unlawful business practices.”

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Mexico Ransomware Attack Freezes Pemex Payment Systems

PYMNTS

Sources have revealed that a ransomware attack has frozen the billing systems of Mexico’s Petroleos Mexicanos (Pemex). Security & Fraud Cyberattack Digital Payments malware mexico Mobile Payments News Pemex Petroleos Mexicanos What's Hot

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What 98 Pct Of Consumers Miss About Protecting Their Cards From Fraud

PYMNTS

These mobile controls, however, also offer consumers a powerful tool for dealing with arguably higher stakes: the risk of credit card fraud. As a part of fraud protection efforts, card issuers and financial institutions (FIs) already flag unusual locations for potentially fraudulent payments.

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Malware Attack Knocks Pitney Bowes’ Systems Offline

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Pitney Bowes was affected by a malware attack that encrypted information on some systems and disrupted customer access to our services,” the company said on Monday (Oct. Security & Fraud Cyberattack Cybercrime FBI malware News pitney bowes ransomware What's Hot

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 Ransomware Gains Traction, UK BEC Fraud Spikes

PYMNTS

Through that ransomware they have been hijacking companies’ systems and demanding bitcoin payment in exchange for a decryption key. They are getting into an administration system, finding lists of client credentials and then installing [Sodinokibi] on all the clients’ systems.”.

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The Evolving Terrain Of Fighting Fraud

PYMNTS

60 percent: Share of fraud experts who believe AI systems lack transparency. percent: Share of FIs that leverage true AI-based anti-fraud systems. Today In Data artificial intelligence authentication Commerce faster payments fraud News payments Security Today in Data

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Beware of data “science projects” turned fraud prevention solutions

Insights on Business

Because of this, traditional rules-based fraud detection systems have become outdated and no longer work. Today, real-time payments require real-time fraud detection. Modern payment fraud schemes require modern prevention.

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Keeping On-Demand Professional Services Fraud-Free

PYMNTS

These platforms must ensure that all parties are trustworthy, putting them in precarious positions as they work to build their user bases without alienating either side with their anti-fraud measures. . Getting Preemptive About Fraud. Digital marketplaces rely on trust to thrive.

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Google Erred In Not Disclosing Microphone In Nest Security System

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Google admitted that it didn’t tell users about a built-in microphone in its Nest Secure home security system, according to a report from Reuters. Nest Secure, a user-friendly home security system, costs around $400.

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Model governance comes to fraud detection

Insights on Business

Payment fraud detection has always had a bit more latitude than its counterparts in anti-money laundering, customer due diligence and even trade surveillance compliance. It is obviously in the best interest of an institution, and its customers, to catch as much fraud as possible.

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Mastercard: Fraud-Fighting’s New Mantra — Test, Protect, Prevent

PYMNTS

The competition between cybercriminals and the fraud and security teams at banks, tasked with stopping their attacks, is incredibly lopsided. The fraud and security teams have to get it right 100 percent of the time to maintain their position of trust across the financial services ecosystem.

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Why Mobile Rewards Programs Attract Fraud

PYMNTS

Rewards and loyalty programs also make attractive targets for fraud. Security was paramount in the eatery’s app redesign, and it utilized the same cloud-based point-of-sale system present at all of its physical locations to handle in-app transactions.

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