PaymentsJournal’s Post

When consumers think of fraud, they often think about stolen card numbers or identities. But for merchants, "friendly fraud" is top of mind. Friendly fraud occurs when a customer disputes a transaction that was, in fact, legitimate. Sometimes, this is with nefarious intent, but often, it's simply a forgotten subscription charge or an unauthorized user in the cardholder's family. Still, whatever the source, this is a significant source of lost revenue and inventory for merchants. And Visa is offering guidance on combatting it. Take a look. #Fraud #FriendlyFraud #MerchantServices https://lnkd.in/gBKBhZ2r

Cracking Down on #GiftCard Fraud Linked to #ChineseCrime Rings. Federal authorities in the #UnitedStates are intensifying efforts to combat gift card #fraud schemes linked to Chinese #organizedcrime rings, which have reportedly siphoned off hundreds of millions of dollars from American consumers. The U.S. Department of Homeland Security has launched "Project #RedHook", targeting a practice known as "card draining", where thieves manipulate card numbers to steal funds before the owner can use them. Over the past 18 months, about 100 individuals have been arrested for #carddraining, with the majority being Chinese nationals or Chinese Americans. However, authorities estimate that up to 1,000 people could be involved in such schemes, primarily as runners for the criminal #gangs. The initiative marks the first time federal authorities have focused on the role of Chinese organized crime in gift card fraud, recognizing the significant economic impact and the need for a coordinated response. With Americans expected to spend over $200 billion on gift cards this year, retailers and consumers alike face escalating #risks from these fraudulent activities. Efforts to tackle gift card fraud include urging retailers to enhance security measures and collaborate more closely with #lawenforcement. By raising awareness and delivering consequences for offenders, Project Red Hook aims to disrupt criminal operations and safeguard consumers against increasingly sophisticated #scams. 

💳 🎁 Did you know that credit card #fraud spikes by 20% over the festive season? And to add to this alarming statistic, the Federal Trade Commission found that credit card fraud remained the most common type of identity theft during the first three quarters of 2023. Now, the critical question arises – how can companies effectively detect and prevent this surge in credit card fraud? https://okt.to/45WGeq

" Fraud hurts everyone." Chargebacks911's latest report on 24 key credit card fraud statistics for 2024 and how to mitigate them. Global credit card fraud projected to reach $43 billion by 2026 , according to the FBI crime report of 2023, where-in 1 in 26 individuals fall victim to credit card fraud annually, it is crucial to comprehend the sources of fraudster data, acknowledge victim responsibility, and consider factors contributing to delays in resolving such incidents. Fraudulent activities can create a "butterfly effect" where losses incurred by merchants due to fraud lead to price increases, impacting all consumers through higher retail prices." #chargeback #creditcards #cardnotpresent #financialcrime #fraudprevention #cybercrime #payments

APP Fraud, Identity Fraud and AI-Enabled Fraud Spotlighted as Main Threats Facing Fintech: The Payments Association conducted a survey of its attendees to understand the fraud landscape and what organisations are most fearful of.

📢 👵🧓 It’s crucial to educate our seniors on elder exploitation! 👴👵 Seniors are often targeted by scammers and abusers, taking advantage of their trust and vulnerability. By raising awareness and providing education, we can empower them to recognize and protect themselves against financial, emotional, and physical exploitation. Let’s ensure our seniors know their rights and how to stay safe. Together, we can prevent elder abuse and create a safer community for all generations. #ElderAbuseAwareness #ProtectOurSeniors #EducateEmpowerProtect 🌟

Passport fraud is a rising threat according to FinCEN and the Department of State DSS. Fake passports helped fraudsters steal an estimated $10 million in losses, with $8 million more attempted. Perhaps the scariest part—this fraud is already large enough to have impacted 4,000 victims. This article explains how FinCEN is relying on banks to modernize their ID verification processes to prevent identity frauds like this from happening. #fraudprevention #fraudtech #fraudstrategy #bankingfraud #passportfraud

I'm not surprised, but I'm shocked anyway. The extent of this behavior is beyond anything I would have expected. My 3 main takeaways: 🦹♂️1) It feels like there might be a wider story evolving. I'm putting this together with other stories Frank McKenna has shared in the last while about #fraud being actively facilitated by supposedly legitimate companies (the auto lending story with the fake companies was particularly eye-opening). 💸This is in parallel to the kinds of trends we've seen emerging out of the VC word in terms of unrealistic products and faked sales numbers getting funding anyway during the boom time. 🚨Founders who don't deserve the trust that's placed in them, and the abuses that result. In this case, founders facilitating fraud for a third party. #Accountability matters. Processes exist for a reason. Ask the hard questions. Wait for an answer. 🦸♀️2) #Fraudfighters who focus on external threat actors don't talk much about internal fraud - how to spot it, and what to do about it. I think that conversation might be worth having, and beginning to include in training and maybe even KPIs. 💡Fraud analysts have a unique set of skills and level of insight into their companies and their transactions. Companies who care, should be leveraging this to prevent abuse. 🏃3) If you have the bad luck to be in a company that doesn't care, and is willing to facilitate fraud to make money - it's not your fault, but it also might not be something you can fix. 🚩If you've raised the flag and realized they don't care, get out. This is not why you got into #fraudprevention. Also - what I never understand about these stories is what the people involved thought was going to happen, long-term. Of course it's going to unravel eventually. The longer it goes on, the worse a place you'll almost certainly be in by the time that happens. And you will likely have hurt hundreds, maybe thousands of people by the time you're done. What are they thinking?? Anyone who thinks they understand this, please explain, because it just never makes sense to me.

As global fraud losses continue to climb, regulators and the industry at large are set to accelerate their fraud prevention efforts in 2024. From tackling authorised push payment fraud to synthetic identity fraud, my colleague, Matt Cox, shares his predictions on the significant developments and initiatives for the new year in his latest blog post: #fraud #fraudprevention #2024trends

Customer education is a critical first line of defence against identity fraud. A lack of risk awareness leaves consumers vulnerable to fraud and can lead to significant financial losses. Read our blog for a step by step guide on how to educate consumers on identity theft risk: https://lnkd.in/d9Puq4cc #FraudPrevention #Scams #FinCrime #IdentityTheft