In Depth

What Transaction Laundering Really Looks Like

It can be difficult to know if you are a victim of transaction laundering without having a clear understanding of the threat itself and its significant impact on eCommerce.

Transaction laundering is a complicated problem and opens the door to a multitude of criminal activity. In many cases, the acquirers and processors who fall victim to transaction laundering are completely unprepared for the oncoming threat. Not only does transaction laundering lead to fraud, but it is also ripe with other brand damaging activities.

It is a crime sustained by multiple points of entry and a growing number of payment channels available for transactions to take place through. Laundered transactions can come through payment pages, shopping carts and virtual terminals, sometimes even being processed through a page a merchant is completely unaware even exists.

Transaction laundering activities are in violation of merchant agreements with acquirers, can allow prohibited goods and services to be processed on legitimate payment systems, and disobeys anti-money-laundering (AML) laws.

But the real challenge in combating transaction laundering lies in identifying and separating laundered transactions from legitimate transactions.

To learn more about the risks and solutions associated with this mounting threat to the payments ecosystem, join Deana Rich, president of Rich Consulting, a specialist in risk management and compliance for acquirers and Dan Frechtling, Chief Product Officer for G2 Web Services, for Oct. 20 and Nov. 18 webinars breaking down the cybercriminal activity that comes with transaction laundering and how it can be stopped.

An additional Nov. 3 webinar will feature Frechtling alongside Gavin Andrews, Principal Product Manager for G2 Web Services and co-author of the Cleaning Out Transaction Laundering white paper.

To learn more and register, please click here.


Featured PYMNTS Study:

More than 63 percent of merchant service providers (MSPs) want to overhaul their core payment processing systems so they can up their value-added services (VAS) game. It’s tough, though, since many of these systems date back to the pre-digital era. In the January 2020 Optimizing Merchant Services Playbook, PYMNTS unpacks what 200 MSPs say is key to delivering the VAS agenda that is critical to their success.