Customers are complaining that they’re being charged for things they say they never meant to buy. Because of the prevalence of fraud in online shopping, banks and credit card companies have long had customer-friendly policies that make it relatively easy to contest suspicious or unwanted charges and get refunds. The cost of the refunds traditionally has fallen on merchants.
Businesses that use subscription models need to be really good about wording their policies, making them clear, and protecting against chargeback.
Nearly $245 million in gift card fraud was reported to the FTC between January 2018 and the end of September of this year. The median individual loss was $840. About one in four people who complained about losing money to fraud said they had paid using a gift card or cards.
Businesses need to stay vigilant of gift card fraud or risk losing loyal customers, merchandise, and revenue to chargebacks.
The Office of the Washington State Auditor found that the Employment Security Department (ESD) did not have adequate internal controls to prevent the fraud.
The “known and suspected” fraud loss, as of June 30, 2020, was about $600 million. This sum covers more than 122,000 known or suspected fraudulent claims in fiscal year 2020.
Consequences of mistakes like these can have unintended results, like the funding of criminal enterprises.
Verifying identity trust is fairly simple with a solution like Kount’s. On a technological level, having an identity trust platformcan make a huge difference. Identifiers like geo-location, real time linking, as well as machine learning, and AI can identity risky interactions and stop them in real time.
Fraudsters tend to stand out because they simply aren’t acting right, this according to the CEO of the company, based on behavioral clues that the solution is capable of picking out.
A customer that is moving confidently and purposefully through a journey behaves differently. They move through the data faster, they don’t tend to make a lot of errors when filling in their personal data, and their physical use of their technology is on the whole more confident.
Businesses are always looking for proactive ways to protect digital interactions
In this instance, businesses are looking at behavior. Behavioral biometrics are also in play digitally.
Burger King has launched a new promotion called the “$1 Your Way Menu” and in conjunction will put $1 in some Venmo users’ accounts through Dec. 28, the day the new menu takes effect, the company announced.
With digital innovations and promotions comes the susceptibility to fraud. Businesses can limit their risk by utilizing a global network of fraud and risk signals, backed by advanced-AI and machine learning.
Kount’s 5 in 5
Discover the latest news and trends in cybersecurity and fraud prevention in the Kount 5 Trends, 5 Minutes: Cyber & Fraud podcast.