Sections
Fraud Prevention
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2.0KAuthenticationConsumers Not Averse To ‘Positive Friction’ In Sharing Economy Platforms
Sharing economy platforms have become a force to be reckoned with. Overall, roughly 111 million consumers use some type of sharing economy...
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3.3KAuthenticationCan Less Digital Security Actually Be More Secure?
What was the color of the car you owned in 2005? Still remember it? Probably not. But you can bet someone knows...
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2.1KSecurity & FraudUS AG Wants Lawmakers To Have Access To Encrypted Messaging
William Barr, U.S. attorney general, made lengthy comments on Tuesday (July 23) about encrypted messaging and the need for law enforcement to...
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3.8KMobile CommerceCan A Line Of Code Fix Customer Onboarding?
Few activities in the digital economy are as filled with friction, and as frustrating and risky for merchants, banks and other businesses,...
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5.0KFraud PreventionAI That ‘Thinks’ Like A Fraud Analyst
Businesses evolve and so does fraud. The data is out there to help separate good transactions from bad, but not all data...
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1.8KRetailCan Digital Platforms Solve The Fraud vs. Friction Dilemma?
Digital platforms facilitate everything from online shopping to ridesharing to booking a hotel. These platforms promise fast, seamless transactions, which most deliver...
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2.1KToday In DataPicking Up The Pace Of Payments
The best speed in payments is usually faster – both when getting paid and when paying out. The ideal speed, of course, would be instant when...
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2.9KFraud PreventionWhy AI Is Social Media Fraud’s New Best Friend
It can be difficult these days to remember the almost idyllic promise of social media when it first entered the general consumer...
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4.1KFraud PreventionCiti On The Art And Science Of Detecting B2B Outlier Payments
Citi has unveiled its Payment Outlier Detection system, which helps corporates find anomalies in payment flows, cutting down on fraud and false...
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2.6KFraud PreventionKount Launches New AI Tool To Detect Fraud
Digital fraud prevention company Kount has launched a new artificial intelligence (AI)-driven solution to enhance payments fraud prevention. The company said this...
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4.8KSecurity & FraudCiti Launches Outlier Payment Detection For Treasurers
Citi is rolling out its Payment Outlier Detection solution for corporate treasurers to automate the detection of outliers and combat fraud. The...
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3.1KSecurity & FraudCrypto Regulation To Tighten Scrutiny On Money Laundering
Amid the announcement of a new cryptocurrency – that would be Libra – the Financial Action Task Force (FATF), which operates as...
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4.2KCredit UnionsCredit Unions Find Friendly Ground With FinTech Firms
Consumers’ lives are becoming more digitally focused, which means it’s natural and expected that credit unions (CUs) are feeling the pressure to...
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3.2KSecurity & FraudAML/KYC’s Data Confidence Crisis
The last thing anyone wants to hear from a financial organization is that the people tasked with risk management are feeling less...
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3.1KMobileHow Mobile Card Services Turn Location Into Loyalty
Location matters in real estate. It matters, too, when protecting credit cards against compromise. As Ondot CEO Vaduvur Bharghavan tells Karen Webster,...
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2.3KVISAVisa Advanced Authorization Blocks $25 Billion In Fraud
Visa has rolled out internal data that indicates its artificial intelligence (AI)-based Advanced Authorization (VAA) security product has helped issuers prevent an...
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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)
3.5KSecurity & FraudAI 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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1.8KB2B 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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2.5KB2B 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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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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2.1KB2B PaymentsOrdo, CGI Collaborate To Combat Invoice Payments Fraud
Business consultancy CGI has announced a collaboration with invoice payments FinTech Ordo to develop a service that combats fraud for both payers...
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5.5KAuthenticationTaking The Future Of Digital ID Verification Back To The Phone
The rise of the digital economy has resulted in growing concerns about identification, not the least of which is making sure that...
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4.9KArtificial IntelligenceWhy AI Is MIA In Most FI Fraud Departments
In the old days, forged checks were the biggest problems that bank fraud departments had to manage. Today, financial institutions (FIs) face...
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5.0KDigital PaymentsPayPal Commerce Platform To Help SMBs Compete With Amazon
PayPal announced on Monday (June 3) the launch of the PayPal Commerce Platform, which is designed to meet the needs of marketplaces,...
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3.5KRetailWhy Digital Marketplaces Must Anticipate Shoppers’ Needs
With abundant choices in many aspects of their lives, consumers expect a range of options when it comes to online shopping, ranging...
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4.9KIntelligence of ThingsWhy An Incremental Approach May Be Key To IoT Security
California’s recent IoT security law, mandating minimum security requirements for connected devices, attempts to thwart fraudsters and other bad actors. But while...
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3.0KSecurity & FraudWirecard Partners With India To Create Digital Taxpayer ID Cards
Wirecard, the global digital financial technology company, announced on Wednesday (May 22) that it has partnered with India’s government-owned UTI Infrastructure Technology...
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4.3KBankingPaving Mobile Banking’s Path To Success
The customer journey in banking begins with offering a wealth of data when opening an account. As Jim Priestley, chief revenue officer...
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4.0KToday In DataA Look Into The Future Of Payments And Commerce
The future of customer service will include humans and robots working in cahoots. The future of Mastercard — and its issuers and...
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3.8KRetailOnline Retailers Face New Threats From Hackers
Death, taxes and data breaches – those are perhaps the only sure things in life, and new evidence is emerging that hackers...
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2.9Kcall center commerceHow Genesys Is Personalizing Call Center Interactions
With each call center generating more than 30,000 hours of interactions weekly, it's nearly impossible for analysts to find valuable customer data...
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6.5KAuthenticationStaring Down The Sharing Economy’s Big Trust Moment
One of the more interesting – and perhaps even amusing – parts of human nature comes from the assumptions we attach to examples...
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3.4KToday In DataThe Innovation Race With Fraudsters Worldwide
For every innovation in payments and commerce worldwide – faster payments, marketplace-based commerce, self-service retail – there always seems to be a...
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2.4KToday In DataBalancing Secure And Seamless Commerce
That customers want everything faster is a fact of life in the digital economy. From the amount of time it takes to...
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3.4KB2B PaymentsCiti Treasury Eyes Verification Tech To Support Faster Payments
Citi’s Treasury and Trade Solutions (TTS) is rolling out a new identity and account verification solution for corporate treasurer clients. In a...
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4.1KAuthenticationAre Merchants Ready For PSD2 And SCA’s 150-Millisecond Learning Curve?
PSD2 will change – indeed is changing – online commerce in Europe and beyond. In a podcast with PYMNTS’ Karen Webster, Rob...
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4.2KFraud PreventionFraudsters’ Latest Target: Dead People
Back in the golden olden days of print newspapers, bad guys would regularly read the obituaries, then craft a plan to break...
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2.0KToday In DataTraveling A Tech Road for Better T&E Management
Beating the paper chase remains an elusive goal, but one that is devoutly pursued by firms of all sizes – especially when...
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4.7KAuthenticationWinning The Arms Race Against Fraudsters — With Selfies
It may seem like ancient history now — about four years ago, the idea that consumers, merchants, financial institutions (FIs) and payment...
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2.8KToday In DataTaking Digital Authentication To The Next Level
Gaming companies are taking digital authentication to the next level. Smart agents are rising to bring better customer service and fraud prevention to financial institutions (FI)...
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8.2KInnovationSmart Agents Are AI’s DNA — Here’s Why
Inspiration comes from anywhere and everywhere, and that goes for digital innovation in payments and commerce. Just ask Akli Adjaoute, CEO of Brighterion (a Mastercard company),...
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2.5KToday In DataThe Latest Advances In Payments And Fraud Prevention
Point-of-sale financing just got a big boost via an acquisition that could lead to more payment synergies down the road. Meanwhile, the new...
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6.6KRegulationStripe On SCA’s $100B-A-Year Problem
Strong Customer Authentication (SCA) is set to debut on September 14, and there’s a $100 billion problem looming if merchants across Europe...
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5.2KInvestmentsPayfone Nabs $24M In Funding; Partners With TransUnion
Payfone announced that it has secured a $24 million funding round, led by TransUnion. The funding also included participation from existing investors...
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6.7KSecurity & FraudWhy Patterns Are Breaking Fraud Fighting’s Old Rules
Fraud evolves as the bad guys do, trying to stay one step ahead of technology and risk management efforts. Jack Bloch, SVP...
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3.4KSecurity & FraudLyft Rolls Out Enhanced And Continuous Driver Background Checks
Lyft, the newly public ride-hailing company, announced Monday (April 15) two new initiatives aimed at increasing the safety and security of its...
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4.5KFraud AttackOnline Porn Pays Off For Fraudsters
Like it or not, pornography — among the most ancient human creative endeavors — is a central player in the digital world...
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6.7KMastercardWanted: Cybersecurity Aces — Mastercard, Partners Have A Plan
Here’s a bit of heresy for 2019: Data’s not everything. Sure, data often gets called the oil of the digital age — and...
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7.3KArtificial IntelligenceAI Enters The FI Fast Lane
It’s hard to find fault with one of the latest tests of artificial intelligence (AI). Medical diagnostic technology built by Google and a...
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5.8KDigital PaymentsHow Payments Help The Sharing Economy Run On Trust
All those children’s TV shows and stories lied: Sharing is not easy. Sharing is, in fact, enormously complex, prone to fraud and...
