Sections
Fraud Prevention
-
2.5KFraud PreventionDeep Dive: Unsupervised Machine Learning Steps Up To Fight Fraud
Fraudsters are getting increasingly creative when stealing money and data, but many FIs, FinTechs and merchants are still taking established approaches to...
-
2.8KFraud PreventionChase Taps Machine Learning For Proactive Approach To Fraud
Banks have a Goldilocks problem: Authentication processes can’t be too rigorous for legitimate consumers, but also can’t be too lax so that...
-
2.3KSecurity & FraudAmazon’s New Anti-Fraud Program Helps Sellers Avoid Counterfeits
In its ongoing efforts to prevent fraud on its site, on Tuesday (Oct. 1) Amazon announced a new program to help sellers...
-
3.0KSecurity & FraudMastercard’s Threat Scan Helps Banks Detect Vulnerabilities
Mastercard has launched Threat Scan, a global solution to help banks spot authorization weaknesses before a breach occurs, the company announced in...
-
2.6KSecurity & FraudVocalink Teams With TSB To Stop Real Time Payments Fraud
TSB is teaming up with Mastercard’s Vocalink to roll out a solution to help prevent fraud and payment mix-ups, Vocalink announced in...
-
4.1KSecurity & FraudOracle Offers AI Automation For AML Compliance
Financial crimes risk management software company Quantifind and Oracle Financial Services have teamed up to improve anti-money laundering (AML) compliance and to...
-
1.7KToday In DataHow To Make Commerce And Payments Smarter
Grocery shopping is getting much, much smarter as the pace of innovation heats up. So are mundane, often frustrating tasks, such as moving. Meanwhile,...
-
3.3KFraud PreventionCurbing Digital Advertising’s Big Payments Fraud Problem
The complexity of online and mobile advertising — and the vast sums of money involved — make those areas extremely attractive for...
-
4.1KConsumer FinanceCracking Loan Fraud’s ‘Blind Eye’ Problem
Pretty much every consumer knows the pain of filling out applications for automotive loans, mortgages and other types of borrowing, of having...
-
2.8KSecurity & FraudWho Should Lead The Digital ID Push?
Despite all the discussion about verifying digital IDs without creating friction for the user, recent incidents like cybercriminals using AI to impersonate...
-
2.4KNewsTop News In Payments: Instant Payments Spread In The Gig Economy; Contactless Cuts Down On Counterfeit Fraud
Today in the payments news roundup, almost 40 percent of U.S. workers are engaged with the gig economy at some level, and...
-
1.7KNewsTop News In Payments: US Lawmakers Remain Libra Skeptics; Grab Expands Into Vietnam
From a ride-hailing company expanding into Vietnam to Visa implementing new tools to fight fraud, today’s payments news runs the gamut. Also,...
-
5.3KSecurity & FraudVisa Debuts AI-Powered Fraud Fighting Tools
Visa has introduced a new suite of security services designed to protect merchants and users from the latest security threats, according to...
-
2.9KAuthenticationConsumers 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...
-
4.1KAuthenticationCan 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...
-
2.6KSecurity & 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...
-
5.3KMobile 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,...
-
5.5KFraud 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...
-
2.0KRetailCan 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...
-
2.4KToday 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...
-
3.4KFraud 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...
-
4.6KFraud 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...
-
2.9KFraud 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...
-
5.6KSecurity & 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...
-
3.5KSecurity & 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...
-
4.9KCredit 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...
-
3.7KSecurity & 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...
-
3.4KMobileHow 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,...
-
2.6KVISAVisa 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...
-
![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)
3.9KSecurity & 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...
-
2.0KB2B 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...
-
2.8KB2B 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...
-
3.0KArtificial 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)...
-
2.6KB2B 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...
-
6.1KAuthenticationTaking 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...
-
5.4KArtificial 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...
-
5.7KDigital 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,...
-
3.7KRetailWhy 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...
-
5.3KIntelligence 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...
-
3.2KSecurity & 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...
-
4.6KBankingPaving 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...
-
4.2KToday 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...
-
4.2KRetailOnline 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...
-
3.2Kcall 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...
-
7.3KAuthenticationStaring 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...
-
3.7KToday 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...
-
2.5KToday 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...
-
3.8KB2B 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...
-
4.4KAuthenticationAre 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...
-
4.5KFraud 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...
