Sections
Editors’ Picks
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1.3KWalmart Amazon whole paycheckThe Amazon/Walmart Whole Paycheck Tracker: Rethinking And Realigning
While this tracker normally focuses entirely on the moves and counter-moves of Walmart and Amazon as they race for the greater share...
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1.9KGlobal PaymentsAlipay’s Many European Plays
That Alipay is moving into Europe — and looking to support the millions of Chinese and Southeast Asian tourists who travel there...
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1.6KSizzle/FizzleUber’s IPO Blame Game
We all like to be rewarded for work and vision, for toil and trouble. For putting up money where, literally, our mouths...
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1.7KRetailHow A New Entrant Navigates A Crowded Subscription Market
Urban Outfitters’ announcement that it was moving into the world of fashion for rent about a month ago was surprising — and...
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1.8KRetailRFID Steps Up As A Retail Innovation Tool
Radio-frequency identification (RFID) technology is carrying more weight in retail these days, helping merchants to innovate and win over consumers, and even...
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1.9KBankingWhy Retail Banking Needs a Reputation Rehab
Most consumers probably don’t have strong opinions about their banks, since the relationship tends to be more transactional than emotional. However, in...
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3.0KB2B PaymentsIn Payments Fraud, A Crypto Scam
It’s not just about invoices and BEC. In one recent example, payments fraud reached into the crypto realm – and a publicly...
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2.2KB2B PaymentsCorporates’ Role In Helping Banks Tackle The Trade Finance Gap
There are a lot of factors that have converged to create a whopping $1.5 trillion in trade finance availability in the global...
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3.3KArtificial IntelligenceVisa’s McSherry On Responsible AI
An AI-driven model offers users great power when it comes to handling data, making sense of seemingly far-flung information. But there also...
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2.4KInnovationLost Pet Posters Get A Digital Upgrade
The traditional method of finding a lost pet worked well enough. A distraught owner might tape or staple some homemade signs around...
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![If it seems like cases of fraud and hacking are always in the news, that’s because new incidents pop up practically every day. One of the latest involves hackers successfully accomplishing account takeovers (ATOs) of users of Zelle, the digital payment service. According to the new Digital Fraud Tracker, total losses due to fraud equaled $4.2 trillion in 2018, and fraudulent mobile app transactions increased 680 percent between 2015 and 2018. Fraud doesn’t impact all industries equally. According to the Digital Fraud Tracker, one-quarter of malware specifically targets FIs, and over 5 percent of online retail revenue is now lost to fraud. By 2020, it’s estimated that U.S. credit card losses will exceed $12 billion. More businesses are adopting artificial intelligence (AI) and other technology to fight fraud. According to the AI Innovation Playbook, 63.6 percent of FIs believe AI is an effective tool for stopping fraud before it happens, and 80 percent of fraud specialists using AI believe the technology could reduce payments fraud. Financial Institutions The rise of online banking has provided a host of opportunities for fraudsters. Old manual detection techniques like analyzing geolocations, IP addresses and discrepancies between billing and shipping addresses aren’t able to catch high-level attacks, and often result in false positives. BNY Mellon implemented an AI-based fraud detection initiative in 2018 to use pattern recognition and deep learning to analyze millions of transactions and identify those that are likely fraudulent. AI isn’t just used for fraud detection in the financial industry – it can also help with regulation compliance and adherence to anti-money laundering (AML) standards. Joseph Sieczkowski, head of technology architecture and data at BNY Mellon, explained how it isn’t enough to use AI reactively. Financial institutions also need to stay one step ahead of fraudsters, because they change techniques quickly and often. “[We] do testing constantly to retrain our models to be able to pick up on different types of fraudulent activities,” he said. Retail Balancing security with improving the customer experience is a challenge for all industries, though reducing friction is even more vital for luxury merchants. “Luxury retailers typically operate in a ‘high-touch’ environment, designed to be as friction-free for the customer as possible,” said Shamoun Siddiqui, chief information security officer of Neiman Marcus, in an interview with PYMNTS. “Any measure of security introduces friction. So, the challenge is to make security as transparent as possible while still protecting the customer’s personal information.” The luxury retailer has been using device fingerprinting to identify devices based on unique configurations – and, ultimately, to determine whether it’s being used by a human or is automated. “We are investing heavily in fraud detection systems that [use] machine learning and artificial intelligence to differentiate between normal patterns of customer behavior and potentially fraudulent ones,” Siddiqui said of the retailer’s approach to identity theft and other types of fraud. “These are patterns that would not be visible to the naked eye.” Fraudsters are getting more sophisticated, making use of bots to mimic typical online shopping behavior. After Neiman Marcus identified a bot attack, the hackers started including mouse movements to fool detection systems. Gaming Due to in-game purchasing becoming more standard – a recent study found that approximately half of all personal computer (PC) and console gamers spend money in-game, a share that climbs to more than 75 percent for mobile gamers – gaming platforms have become an attractive target for fraud, especially for hackers who acquire personal data via account takeovers. Gaming and gambling sites face similar issues, as too many security measures can turn off users who will go elsewhere. Some sites are reluctant to implement overly stringent security measures. Beyond using machine learning to detect fraud before it happens, gaming platforms are also using liveness detection, which requires players to be physically present during the verification process so they can submit photos, video playback or audio recordings to confirm their identities. Fingerprints, voice prints and other forms of biometric authentication are gaining steam in the arsenal of fraud-fighting tools. More than 63 percent of all smartphones manufactured in 2017 incorporated some type of biometric authentication, and a growing share of devices are expected to offer these solutions as fraud increases.](https://securecdn.pymnts.com/wp-content/uploads/2019/06/digital-fraud-ai-tools-450x270.jpg)
![If it seems like cases of fraud and hacking are always in the news, that’s because new incidents pop up practically every day. One of the latest involves hackers successfully accomplishing account takeovers (ATOs) of users of Zelle, the digital payment service. According to the new Digital Fraud Tracker, total losses due to fraud equaled $4.2 trillion in 2018, and fraudulent mobile app transactions increased 680 percent between 2015 and 2018. Fraud doesn’t impact all industries equally. According to the Digital Fraud Tracker, one-quarter of malware specifically targets FIs, and over 5 percent of online retail revenue is now lost to fraud. By 2020, it’s estimated that U.S. credit card losses will exceed $12 billion. More businesses are adopting artificial intelligence (AI) and other technology to fight fraud. According to the AI Innovation Playbook, 63.6 percent of FIs believe AI is an effective tool for stopping fraud before it happens, and 80 percent of fraud specialists using AI believe the technology could reduce payments fraud. Financial Institutions The rise of online banking has provided a host of opportunities for fraudsters. Old manual detection techniques like analyzing geolocations, IP addresses and discrepancies between billing and shipping addresses aren’t able to catch high-level attacks, and often result in false positives. BNY Mellon implemented an AI-based fraud detection initiative in 2018 to use pattern recognition and deep learning to analyze millions of transactions and identify those that are likely fraudulent. AI isn’t just used for fraud detection in the financial industry – it can also help with regulation compliance and adherence to anti-money laundering (AML) standards. Joseph Sieczkowski, head of technology architecture and data at BNY Mellon, explained how it isn’t enough to use AI reactively. Financial institutions also need to stay one step ahead of fraudsters, because they change techniques quickly and often. “[We] do testing constantly to retrain our models to be able to pick up on different types of fraudulent activities,” he said. Retail Balancing security with improving the customer experience is a challenge for all industries, though reducing friction is even more vital for luxury merchants. “Luxury retailers typically operate in a ‘high-touch’ environment, designed to be as friction-free for the customer as possible,” said Shamoun Siddiqui, chief information security officer of Neiman Marcus, in an interview with PYMNTS. “Any measure of security introduces friction. So, the challenge is to make security as transparent as possible while still protecting the customer’s personal information.” The luxury retailer has been using device fingerprinting to identify devices based on unique configurations – and, ultimately, to determine whether it’s being used by a human or is automated. “We are investing heavily in fraud detection systems that [use] machine learning and artificial intelligence to differentiate between normal patterns of customer behavior and potentially fraudulent ones,” Siddiqui said of the retailer’s approach to identity theft and other types of fraud. “These are patterns that would not be visible to the naked eye.” Fraudsters are getting more sophisticated, making use of bots to mimic typical online shopping behavior. After Neiman Marcus identified a bot attack, the hackers started including mouse movements to fool detection systems. Gaming Due to in-game purchasing becoming more standard – a recent study found that approximately half of all personal computer (PC) and console gamers spend money in-game, a share that climbs to more than 75 percent for mobile gamers – gaming platforms have become an attractive target for fraud, especially for hackers who acquire personal data via account takeovers. Gaming and gambling sites face similar issues, as too many security measures can turn off users who will go elsewhere. Some sites are reluctant to implement overly stringent security measures. Beyond using machine learning to detect fraud before it happens, gaming platforms are also using liveness detection, which requires players to be physically present during the verification process so they can submit photos, video playback or audio recordings to confirm their identities. Fingerprints, voice prints and other forms of biometric authentication are gaining steam in the arsenal of fraud-fighting tools. More than 63 percent of all smartphones manufactured in 2017 incorporated some type of biometric authentication, and a growing share of devices are expected to offer these solutions as fraud increases.](https://securecdn.pymnts.com/wp-content/uploads/2019/06/digital-fraud-ai-tools-80x80.jpg)
3.6KSecurity & FraudFraudsters Find New Bank Stomping Grounds
The good news in the world of fighting fraud and cybercrime is that, by the numbers, the battle against the thieves has...
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2.7KInnovation5G Isn’t The Only Digital Communication Game In Town
The new 5G mobile network technology is getting its first deployments, but that’s not the only communications game in town. A technology...
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2.5KIPOFiverr’s IPO Bodes Well For (Some) Gig Economy Stocks
Amid a slew of busted initial public offerings in the tech realm, with Uber and Lyft among them, and the specter of...
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2.4KInnovationUber Presses The Gas On Autonomous Vehicles Via Volvo
Drivers of cars and trucks are not a diminishing breed – in fact, there is an ongoing U.S. shortage of drivers to...
- 3.6KSecurity & Fraud
AI Helps Businesses Get Smarter About Fraud
If it seems like cases of fraud and hacking are always in the news, that’s because new incidents pop up practically every...
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1.5KRetailBuilding A Niche Brand For Outdoor Enthusiasts
While the eCommerce era puts a literal planet’s worth of goods at consumers’ fingertips, not all purchasing experiences are created equal. Some...
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3.0KRetailRetailers Look To Augmented Reality To Lure Local Shoppers
Retail is getting more visual, and that stands to be the case for locally-focused merchants as they compete for attention and consumer...
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2.1KInnovationCybersecurity Turns To Crowdsourcing Amid Hiring Woes
Cybersecurity is one of the main tasks in the world of digital commerce and payments, and it’s a task that is getting...
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1.8KB2B PaymentsB2B Pursues An Amazon-Like Experience
In the world of tech and commerce, everybody wants to be like Amazon. That’s particularly true in the B2B eCommerce space, as...
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2.8KB2B PaymentsVisa B2B Connect Goes Global
Visa B2B Connect, a corporate cross-border payments solution underpinned by DLT, enters 30 markets. Elsewhere, in India, Mastercard and Payswiff are partnering to...
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2.2KB2B PaymentsThe Enterprise Headache Of A Decentralized Blockchain
For blockchain technology, the crux of many of its purported benefits for the enterprise is its decentralized nature, which, proponents of distributed...
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2.5KB2B PaymentsWhitepages Pro Spins Out, Becomes Ekata
Whitepages Pro is playing the long game when it comes to payments, with a series of structural changes separating consumer and B2B...
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3.5KInnovationMapping The Maps For Self-Driving Cars (And Drones)
If one doesn’t know where they’re going, sang one Beatle, any road will get them there — but not easily or efficiently....
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3.5KPayment MethodsDiving Into The ‘Check-Replacement Cycle’
As much as 80 percent of firms still rely on paper checks. Only 3 percent of firms meet demands for B2C payments. Fiserv...
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4.1KMastercardMastercard Bets On Biometric Cards To Advance Inclusion
In early May, Mastercard, in partnership with SEDESSON, the Mexico state agency for social benefits, and Edenred Bank, announced a first-of-its-kind test...
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1.9KRegulationFundamentals Trump Regulation For Facebook Shares?
The specter of increased regulation looms for the largest of tech companies. Breakups may be in the offing, as might new mandates governing...
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1.9KCommerceMary Meeker Offers Digital Views For 2019 And Beyond
Digital payments continue to be fueled by the growth of such areas as ridesharing and wearable technology, as well as the images...
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2.0KRidesharingFor Uber’s Competition, London Calling
London calling. Much has been made in recent weeks about the rise of ride-hailing, and about the fact that red ink dominates...
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1.7KRetailPerfecting Fashion Classics With Advanced AI
Since it was first rolled out to the world in the 1920s by Coco Chanel, the little black dress has been something...
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1.6KRetailWhy Goodwill Is Tapping Into Digital Marketplaces
To bring their merchandise in front of millions of shoppers through eCommerce, several Goodwill regions are teaming with mobile marketplace OfferUp. More...
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1.9KRegulationBig Tech Antitrust Hearings Begin With Scrutiny Of Media Industry
And so the long look at Big Tech begins. Lawmakers held the first of several hearings into the marketplace power of online...
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2.3KAuthenticationDigital ID: Balancing Convenience And Safety
Consumers must prove themselves multiple times per day. When checking email, shopping online, paying bills or accessing medical records, users need backup...
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2.9KB2B PaymentsHow Overlay Services Add New Opportunities In Open Banking
One year after the rollout of Open Banking in the U.K., researchers have found that a general understanding and awareness of the...
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5.1KSecurity & Fraud‘Human-Proofing’ Marketplace Fraud
Trust is the currency that makes online marketplaces of all shapes and sizes run — but in a world where cybercrime and...
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3.6KInnovationHow A Retail Incubator Could Produce The Next Big Innovation
The myth of the lone (and possibly mad) scientist died out a long time ago, as the industrial age led to teams...
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3.6KSecurity & FraudProtecting Accounts Payable From Smarter, Faster Fraudsters
Payments are getting faster, fraudsters are getting smarter — and AP departments are often unwitting victims of phishing and other schemes. Bottomline’s...
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2.4KAmazonIs Amazon On The Way To Becoming Subscription Commerce’s New Hub?
Getting to scale is a necessary but difficult hurdle to clear on the road to subscription services success. Customer acquisition and retention...
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2.0KRegulationCommittee Hearing To Examine Big Tech’s Media Market Power
Get ready for the opening act of what may be long-running show – focused on antitrust and on Big Tech. The House...
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2.5KRetailRacing Amazon Go To The Cashierless Finish Line
Though San Francisco startup Zippin has gotten lots of press for being the first cashierless convenience store to compete directly with Amazon Go, Zippin CEO...
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2.8KArtificial IntelligenceWhy Aren’t More FIs Using AI To Fight Fraud?
Payment fraud is an ideal use case for machine learning and artificial intelligence (AI), and has been used by financial institutions (FIs)...
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3.1KB2B PaymentsHow Banks Balance New SMB Tech (Without Nixing The Old)
The U.S. banking industry is an ever-evolving machine, shaped and disrupted by FinTech, regulation and shifting customer expectations. Until recently, these changes...
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5.9KVISAVisa Launches Visa B2B Connect In 30+ Markets
Almost two years in the making, Visa B2B Connect makes its official launch, with a rollout across 30 countries. Kevin Phalen, head of...
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2.9KeCommerceThe Great Marketplace, Branded Storefront Debate
In the world of physical retail, finding a product to buy is rather straightforward: People go to stores, find something that suits...
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1.9KDataSpinning Raw Data Into Synthetic (Revenue) Gold For FIs
Data is everywhere. ARM Insight CEO Randy Koch tells PYMNTS that the most valuable (and safest) data is synthetic data, which meets privacy...
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3.8KInnovationBusiness Writing Gets A Boost From Big Data
The digital age is nothing if not an ongoing revolution in communication – which, of course, powers innovation in payments, commerce and...
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1.7KData DiveData Dive, Farewells Edition: Apple, Chase, SoFi, Uber
There were plenty of introductions last week. Stripe rolled out chargeback protection, Apple rolled out its take on sign-in authentication, Mastercard launched an open banking platform...
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2.9KRetailSaving The World By Serving Up Bugs
On average, each human being consumes 75 pounds of meat per year. But, like most averages, that number can be somewhat deceiving....
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2.2KRetailWhy Robotization Is Critical To Amazon’s One-Day Shipping Vision
Cathryn Kachura is a a “flow control specialist” at Amazon’s Denver, Colorado sortation center, an extra-large warehouse that is informally known as...
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2.6KRetailHow The Sharing Economy Is Changing Online Sales
The sharing economy has transformed the way consumers get transported from point A to B, how they rent vacation homes, how they...
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2.6KRegulationSenators Urge CFPB To Reconsider Debt Collection Overhaul
A group of senators is urging the Consumer Financial Protection Bureau to reconsider a recently proposed overhaul of debt collection practices that...
