GREYHOUND DRIVES OMNICHANNEL SECURITY WITH AI, ADVANCED LEARNING TOOLS
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
FEBRUARY 2020
GREYHOUND DRIVES
OMNICHANNEL
SECURITY WITH AI,
ADVANCED LEARNING
TOOLS
– Page 6 (Feature Story)
Mobile apps’ explosive growth continues
to attract cybercriminals
– Page 10 (News and Trends)
Fraud orchestration minimizes customer
friction, increases security
– Page 16 (Deep Dive)
03 WHAT’S INSIDE
A look at how merchants are avoiding fraud-related
losses, and why savvy firms are focusing on
risk management solutions offering frictionless
prevention
06
FEATURE STORY
An interview with Todd Koch, vice president of
strategy, marketing and customer engagement at
Greyhound, on how the 106-year-old bus company
uses AI and other advanced learning tools for fraud
decisioning
10 NEWS & TRENDS
The latest news and developments in the space,
including details on how scammers are exploiting
loopholes in mobile app security, innovative law
enforcement moves to unplug online scams and the
data breach Amazon is facing
16 DEEP DIVE
An in-depth look at why data and fraud orchestration
could be banks’ go-to risk management solutions,
helping them maximize security with minimal
customer frictions as fraud becomes more complex
18 ABOUT
Information on PYMNTS.com and Simility
ACKNOWLEDGMENT
The Merchant Fraud Decisioning Playbook is produced by PYMNTS and sponsored by Simility.
PYMNTS is grateful for the company’s support. PYMNTS.com retains full editorial control over
the following findings, methodology and data analysis.
Fraud is growing more sophisticated and mul- related data and risks. The latter must also
tifaceted, and firms and banks are confronting generate reports that showcase that infor-
the daunting task of trying to stay ahead of mation, which can prove to be a complicated
cybercriminals. This is becoming even more undertaking.
challenging as fraudsters get better at mask-
Many FIs and payment service providers
ing their identities with stolen credentials,
(PSPs) are thus looking to advanced learn-
botnets and other tools and technologies.
ing tools such as artificial intelligence (AI)
The revised Payment Services Directive and machine learning (ML) to close the se-
(PSD2) has sought to address these growing curity gaps PSD2’s open API requirements
security threats with its strong customer au- create. These technologies can monitor and
thentication (SCA) mandate, but compliance report transaction activity as well as un-
is creating issues for financial institutions cover emerging fraud patterns. Advanced
(FIs) and merchants alike. PSD2 requires FIs learning tools help firms build strong defense
to enable access to their customers’ data systems against emerging threats and or-
through application programming interfaces chestrate complex authentication decisions
(API), but many are ill-equipped to safeguard while complying with new security and finan-
these solutions while meeting the open ac- cial regulations.
cess requirements.
ACROSS THE FRAUD
SCA compliance is going to make it even DECISIONING SPACE
more difficult for firms to balance securi- Online classified advertising fraud is one of
ty and seamless customer experiences, too, the most ubiquitous and fastest-growing
pressuring FIs to prove that transactions scams. Phony advertising’s direct cost to ad-
are low-risk and thus exempt from SCA and vertisers is projected to grow to $32 billion
requiring providers to monitor and record by 2022, up from an estimated $26 billion
WHAT’S INSIDE 4
this year. The Better Business Bureau (BBB) GREYHOUND PUTS OMNICHANNEL
of Kentucky recently alerted the public to a SECURITY BEHIND THE WHEEL
phishing scam featuring the Amazon logo, for Ticket scam attacks and fraud costs are ram-
example. The scheme baits users with emails pant in the travel industry, and 106-year-old
thanking them for buying Amazon gift cards bus operator Greyhound has worked to over-
and prompting them to click on illegitimate haul and secure its many channels. The firm
links to cancel their orders or receive refunds. utilizes AI and ML to reduce both ticket and
loyalty program fraud and provide smooth-
Fraudsters are using false Amazon products
er customer experiences. For this month’s
for their crimes, but the company’s legitimate
Feature Story (p. 6), Todd Koch, Greyhound’s
offerings are also seeing trouble. Its Ring
vice president of strategy, marketing and
doorbell home security system drew ire when
customer engagement, explains how the
researchers found users’ private account
company overcame decades-old legacy sys-
details listed on a website for bad actors
tems and upgraded its cyber defenses to stay
sharing stolen information. The informa-
two steps ahead of bad actors.
tion could give hackers access to Ring users’
home addresses, phone numbers and pay- ORCHESTRATING COMPLEX
ment details, creating safety issues for their AUTHENTICATION AND FRAUD
physical properties, bank accounts and other DECISIONING
online profiles. Merchants are inviting increased attention
Phishing scams and data breaches are not from fraudsters as they expand their services
the only attacks wreaking havoc on con- across multiple channels, meaning they must
sumers and merchants — mobile apps are consider more holistic prevention approach-
fast-becoming favorite targets for fraudsters. es with multipronged fraud decisioning
A recent report found that 93 percent of the strategies.
mobile transactions attempted in 2019 were This month’s Deep Dive (p. 16) explores how
blocked as fraudulent. These transactions merchants can better identify risky trans-
could have resulted in upward of $2.1 billion in actions and orchestrate authentication and
fraudulent charges. fraud decisioning efforts with AI and ML sys-
For more on these stories and other re- tems, enabling them to break down silos
cent fraud decisioning headlines, read the and obtain 360-degree views of customers
Tracker’s News and Trends section (p. 10). with the flexibility to combat emerging
fraud threats.
© 2020 PYMNTS.com All Rights Reserved
WHAT’S INSIDE 5
25%
Share of total fraud losses
retail banks were able to
recover in 2018
$32M
Estimated direct cost to
93%
Share of attempted
advertisers from phony mobile transactions
advertising by 2022 that were blocked as
fraudulent in 2019
1,562
Number of Ring doorbell
$25B
Estimated total fraud
users whose addresses costs projected for the
and passwords were found online travel agency
on a dark web marketplace space by 2020
© 2020 PYMNTS.com All Rights Reserved
GREYHOUND DRIVES
OMNICHANNEL SECURITY
WITH AI, ADVANCED
LEARNING TOOLS
T
he travel industry may have seen
exceptional growth in recent
years, but the space has also toted
the heavy baggage of rising fraud
costs. Fraud could cost the market more
than $25 billion this year, and approximate-
ly 20 percent of attempted travel-related
transactions are confirmed to be fraudulent.
Dallas-based busing line Greyhound is all
too familiar with such problems, prompting
it to implement advanced learning technolo-
gies to secure ticketing.
The 106-year-old company recently under- and customer engagement at Greyhound, ex-
went a significant technological overhaul, plained how the company secured the new
using AI and ML to upgrade its payment and channels its digital transformation created.
enterprise system and make buying tickets as
“What we really started with was understand-
efficient and secure as possible. Greyhound is
ing customers’ pain points throughout the
also looking to attract passengers with refur-
ticket purchase process, from pre-travel [to]
bished buses and self-service kiosks at nearly
post-travel,” he said. “Our Number One goal
4,000 terminals across the country.
was making sure that process was as fric-
In a recent interview with PYMNTS, Todd tionless as possible while making sure that
Koch, vice president of strategy, marketing we [offered] a fully secure process.”
FEATURE STORY 8
ROLLING OUT DYNAMIC PRICING Greyhound’s digital push comes as more con-
MODELS, MOBILE APPS sumers — many of them millennials — are
Greyhound, which United Kingdom-based demanding added affordability, convenience
FirstGroup purchased in 2007, serves more and safety from travel companies. Koch
than 16 million riders each year across the acknowledged that one of the biggest chal-
U.S. and Canada, making IT infrastructure lenges of overhauling Greyhound’s operations
upgrades a daunting task. The firm com- was overcoming an enterprise system and
pleted the first phase of its transformation corporate culture riddled with “sacred cows.”
in 2014, allowing it to use real-time analytics
Management had to educate stakehold-
and IT tools to create dynamic pricing models
ers during the transformation process and
and enable online and mobile app transac-
overcome reluctance from its 50 bus carrier
tions. Greyhound now guarantees customers’
partners.
seats, and its airline-style yield management
system and real-time pricing algorithms have “We got consistent pushback,” he said, noting
sharply reduced overbooking. Streamlining that some “weren’t ready for … the technolo-
operations and improving customer insights gies we were putting in.”
were key, but so was protecting against fraud,
Koch said.
NOW, ONCE YOU’VE
SELECTED YOUR TICKET,
YOU CAN CHECK OUT
WITH ONE CLICK.
© 2020 PYMNTS.com All Rights Reserved
FEATURE STORY 9
OVERCOMING LEGACY SYSTEMS crowded bus industry, and the firm focus-
Riders had to go through 25 steps to purchase es much of its promotional and discounting
tickets online prior to the introduction of programs on existing customers rather
Greyhound’s new website in 2015, Koch point- than new ones, Koch said. Bad actors used
ed out, adding that a printed ticket looked like to take advantage of these gateways, such
an “accounting sheet.” as Greyhound’s loyalty program, and in-
flict damage on the company, but its new,
“You can imagine how much friction that in-
enhanced payment system more easily au-
troduced and what our conversion rates were
thenticates users and prevents such abuses.
then,” he said. “Now, once you’ve selected
Even third-party purchases are protected,
your ticket, you can check out with one click,
as these transactions must also go through
[allowing] our conversion rates [to go] up
Greyhound’s security firewalls. The firm’s
significantly.”
user identification security system has cut
Management also needed to ensure the “chargebacks to nothing,” according to Koch.
firm’s new payment system offered custom-
Not all of Greyhound’s digital moves have
ers’ preferred payment methods, including
paid off, Koch noted, citing its attempt to sell
cash. Those using hard currency can order
tickets via the Apple Watch.
tickets online and pay for them upon pickup
at brick-and-mortar retailers. This buy now, “No one used it,” he lamented. “It was one
pay later (BNPL) program assists those who of those things where it sounded like a
are underbanked or do not have funds readily great idea.”
available in their accounts. Management is now taking a “wait and see”
“That was a huge win … because it enabled approach, Koch said, and is observing how
us to shift quite a few people to this really fric- technologies are being used elsewhere in the
tionless experience while [also] allowing them travel industry before hopping aboard. Such
to continue to transact with us in cash, their an approach may not put Greyhound on the
preferred method of payment,” he explained. industry’s technological forefront, but it will
ensure its customers remain protected in a
KEEPING BAD ACTORS OFF THE BUS market rife with scams.
Greyhound offers customers a number of
discounts and promotions to compete in the
© 2020 PYMNTS.com All Rights Reserved
download on Google Play at the time of pub-
ACROSS THE FRAUD
lishing. Users downloaded the worst five,
DECISIONING SPACE
which were responsible for 353 million “sus-
UPSTREAM STUDY FINDS 93 PERCENT
picious mobile transaction” attempts, nearly
OF MOBILE TRANSACTION ATTEMPTS
700 million times. The report also found that
WERE FRAUDULENT
the top-targeted category was tools/person-
Mobile apps allow consumers to quickly and
alization/productivity, followed by games and
conveniently shop or make payments from
entertainment/shopping.
anywhere, but their ubiquity has also made
them a favorite target for bad actors. A report RISE IN ONLINE FRAUD EXPECTED
found 93 percent of mobile transaction at- FOLLOWING DELAYS IN PSD2
tempts from 31 mobile operators across 20 COMPLIANCE
countries to be fraudulent in 2019. These 1.6 Data security and anti-fraud measures
billion illegitimate transactions would have have been top-of-mind for nearly all intu-
cost consumers $2.1 billion if left unchecked. itions as fraudsters ramp up their efforts.
PSD2’s much-anticipated implementation
Some 98,000 malicious apps were identi-
has slowed as affected markets seek more
fied last year — up from the 63,000 reported
time to adhere to its SCA requirement. These
in 2018. Android users were the most affect-
delays are preventing the implementation
ed, given their majority hold on smartphone
of stricter authentication requirements and
sales, with 43 million such devices infected
will likely contribute to the projected $48 bil-
with these apps. Upstream’s study also not-
lion annual online payment fraud losses that
ed that 32 percent of the top 100 most-active
eCommerce, money transfers and other sec-
malicious apps were still available for
tors will hit by 2023 — more than double theNEWS & TRENDS 11
$22 billion estimated for 2018, according to a for mobile-based and tap-and-go credit and
report. Much of that uptick will be driven by debit transactions, the monitoring compa-
fraud involving physical goods at nearly $23 ny noted, likely contributing to this shift — the
billion, money transfers at $10 billion and digi- second such decrease since it began tracking
tal goods at more than $5 billion. these statistics.
This growth in fraud-related losses underpins Banks, card issuers and regulators have
bad actors’ improved abilities to easily access been closely monitoring such data, with the
personally identifiable information (PII). They Reserve Bank of Australia ordering FIs to work
can obtain PII through phishing, but they can toward lowering fraud rates or absorb more
also easily buy sensitive customer data on the of the costs accrued from phony transactions
dark web. Fraudsters can then use this data — a number that could reach approximately
to create synthetic identities and make fraud- $100 million for the nation’s top four card is-
ulent purchases or open accounts. The report suers. Those fraud-related expenses were
further projects that fraud related to mon- pushed onto merchants prior to the Reserve
ey transfers could reach $10 billion by 2023, Bank’s notice.
representing annual growth of more than 20
percent over 2018. Industry analysts maintain
VIRTUAL SCAMMING
that digital schemes’ increasing complexities
PROBLEMS
should prompt companies to develop more
BBB OF KENTUCKY WARNS ABOUT
holistic approaches to fraud prevention, en-
PHISHING ATTACK BEARING
abling compliance above and beyond PSD2’s
AMAZON LOGO
requirements.
Fraudsters’ schemes may be getting more
AUSTRALIA SEES DECLINE IN sophisticated, but they are also continuing
NATIONAL ONLINE FRAUD RATES their traditional methods. Classified advertis-
Some countries are making notable headway ing fraud has been affecting consumers and
in the fight against fraud. Australia saw its on- businesses for decades, yet it remains one of
line fraud rate dip to $455 million during the the most ubiquitous and fastest-growing on-
2018 to 2019 fiscal year, according to indus- line scams. Recent research projects that it
try fraud monitoring firm AusPayNet. That will cost advertisers $26 billion in 2020 — a
figure represents a 5 percent decrease from number that could rise to $32 billion by 2022.
the $479 million registered the year before. Such scams’ simplicity is what makes them
Many of the country’s consumers are turn- successful: Fraudsters post products or ser-
ing to more secure services like Apple Pay vices online, which are used to convince
© 2020 PYMNTS.com All Rights ReservedNEWS & TRENDS 12
victims to digitally wire or send money to (P2P) exchange platforms such as Facebook
someone who does not exist. The solicitation Marketplace. The $100 prop bills, which can
typically includes a well-crafted logo from a be purchased on sites like promoney.com, are
recognizable company or entity to foster re- marked “For Motion Picture Purposes” and
cipients’ trust. are exchanged for goods from unsuspect-
ing sellers. The SMPD has since established
The BBB of Kentucky recently alerted the pub-
a safe exchange location in front of its head-
lic to one such scam featuring the Amazon
quarters, which has encouraged more secure
logo. Perpetrators sent consumers mali-
transactions with unknown buyers and has
cious emails thanking them for purchasing
reportedly deterred these prop money scams.
eGift cards and prompting those who did
not to click an embedded link to obtain re- CARDPLANET’S OWNER PLEADS
funds. These unsuspecting victims were GUILTY TO IDENTITY THEFT, OTHER
taken to a dummy Amazon page from which CHARGES
fraudsters could glean the PII necessary to Online scammers try hard to hide their nefar-
commit additional crimes. The BBB stated ious acts, but one such operator is learning
that recipients should not be fooled by these that cybercrimes have serious negative
unexpected emails containing corporate lo- consequences. Aleksei Burkov, the 29-year-
gos, no matter how authentic they seem, and old operator of online fraud marketplace
added that checking personal accounts to Cardplanet, has pleaded guilty to access de-
verify purchases would help protect their on- vice fraud, conspiracy to commit identity
line interactions. theft, money laundering and other charges,
according to the United States Department
LOUISIANA TOWN’S POLICE FORCE
of Justice. He was arrested for his crimes in
WARNS OF PROP MONEY USE ON
SOCIAL MARKETPLACES Israel in 2015, then extradited to the U.S. last
year after a lengthy appeals process.
Other officials have had to take more unique
approaches to curtail online scams, par- Cardplanet sold hackers card information,
ticularly as fraudsters unveil new — albeit which was used to clone cards and make $20
simple — methods to defraud victims. The million in fraudulent purchases. This was not
St. Martinville Police Department (SMPD) in Burkov’s only venture, however. He also op-
St. Martinville, Louisiana, recently announced erated an “invitation-only” site through which
that scammers have been using movie prop cybercriminals could acquire other sensi-
money to purchase electronics, video games tive products, including hacking tools, money
and other items through person-to-person
© 2020 PYMNTS.com All Rights ReservedNEWS & TRENDS 13
laundering services and PII. His sentencing over 1 million international customers’ de-
will take place in May. tails for sale on an online forum called Joker’s
Stash. The details were priced at $17 per card
for U.S. consumers and $210 for those of in-
DETECTING ONLINE
ternational users.
SCAMS
ORGANIZED GANGS TAKING THEIR Wawa issued a statement saying it was aware
ILLEGAL ACTS TO CYBERSPACE of the attempts to sell customer card informa-
Organized gangs are often associated with tion acquired during the 2019 breach, which
crimes such as drug trafficking and firearms occurred between March and December, ac-
offenses, but some are joining the ranks of cording to Gemini. The latter added that the
cybercriminals eyeing the lucrative online breach was “among the largest payment card
fraud business. These bad actors are partner- breaches of 2019, and of all time” and affect-
ing with money mules who trawl dating sites ed all 860 of Wawa’s store locations.
and target vulnerable middle-aged and elder-
ly victims, enticing them to open accounts or
register limited liability companies to invest in
phony business ventures.
These gangs add another layer to the already
complex schemes companies and FinTechs
have to combat. Many firms are thus opting
for agile and adaptive risk management solu-
tions that can spot complex fraud patterns
in real time while also minimizing custom-
er friction.
WAWA CUSTOMERS’ BREACHED
CARD DETAILS ARE UP FOR SALE
U.S. convenience and fuel chain Wawa has
fallen victim to a cyberattack, solidifying gas
stations as some of hackers’ favorite targets,
according to a Gemini Advisory report. The
company announced that hackers stole and
listed more than 30 million Americans’ and
© 2020 PYMNTS.com All Rights ReservedNEWS & TRENDS 14
Researchers have found other security flaws
in Ring’s systems that made users’ Wi-Fi
passwords available to third parties and
enabled company employees to access cus-
tomers’ live camera feeds. Ring has denied
the latter allegations.
RELEASES AND
ACQUISITIONS
QIB SELECTS IBM SYSTEM TO
ADVANCE FRAUD PREVENTION
Cybercriminals’ rising fraud success rates are
pushing innovative companies to add more
secure prevention strategies with minimal
customer frictions — top concerns when de-
ciding which risk management solutions to
SECURITY RESEARCHERS FIND implement or develop. Recent research found
FLAWS IN AMAZON’S RING
that approximately half of retail banks recov-
DOORBELL
er less than 25 percent of their fraud costs,
eCommerce giant Amazon has a ubiquitous for example, but fraud and data orchestration
online retail presence, making it a big focus for solutions’ real-time insights, analysis and pre-
cybercriminals. The company’s Ring doorbell dictive features are gaining traction and could
home security system came under fire last improve this number.
month when researchers found 1,562 Ring
users’ email addresses and passwords listed Qatar Islamic Bank (QIB) sought to ensure
on a website fraudsters use to share stolen customer trust while enhancing security
materials. Hackers who use these items can when it selected technology provider IBM’s
gain users’ home addresses, phone numbers data science-based payment fraud pre-
and payment information, creating safety is- vention solution, Safer Payments. The
sues for victims’ homes and bank accounts. system offers cross-channel fraud pre-
vention to help the bank smoothly process
Ring users have been advised to update their payments and stop fraud before it happens,
usernames and passwords, especially if they QIB said. Safer Payments combines finan-
are relatively simple. cial and non-financial data with customers’
© 2020 PYMNTS.com All Rights ReservedNEWS & TRENDS 15
transaction histories to authenticate their pur- CNP FRAUD PROJECTED TO HIT $7.2B
chases in real time, among other features, IN 2020
keeping both the bank and its clients protect- Companies know that paying for fraud pre-
ed against bad actors. vention is cheaper than mitigating related
financial consequences, and authenticating
PAYONEER TO ADD POPs TO ITS
potential customers during account appli-
PAYMENT PROCESSING CAPABILITIES
cation processes can improve their efforts.
Fraudsters are confronting new tools de-
Numerous data breaches have made it easier
signed to thwart their illicit activities: Payment
for scammers to piece together various us-
orchestration platforms (POPs). These tools
ers’ details to create synthetic identities, and
aim to consolidate payment processes into
application fraud is already a massive burden
a single ecosystem to ensure security and
across business sectors. Card-not-present
speed. An airline could use POPs to create
(CNP) fraud is expected to rise to $7.2 billion
a network of travel services merchants that
in 2020, too, up from $4.5 billion in 2016, ac-
would allow customers to purchase airline
cording to an Aite Group report.
tickets, reserve cars or hotels and perform
other related functions without having to re- Cybercriminals are also using bots to open
enter payment information, for example. accounts as fast as they can, hoping to over-
whelm companies’ systems and achieve as
Digital payment platform Payoneer is enhanc-
many false approvals as possible. Many rush
ing its POP capabilities through its acquisition
to exploit merchants’ and FIs’ impulses to
of Munich, Germany-based technology com-
lighten security standards and better facilitate
pany optile. The latter’s system consolidates
new account approvals to bring in business,
industry players, helps businesses scale their
for example. These companies want to cre-
operations for quicker expansion into new
ate fewer frictions for their buyers and might
markets and enables merchant clients to
thus remove certain security measures. Bots
add payment options and partners as need-
accounted for approximately 20 percent of ac-
ed. These features will help Payoneer better
counts opened between July and September
serve its clients with “full control, freedom
2019, according to PYMNTS’ research, mean-
and flexibility to design and optimize their
ing bad actors will likely find ways around any
payment experiences, improving payment
subpar defenses.
conversion and customer retention,” a press
release noted.
© 2020 PYMNTS.com All Rights ReservedORCHESTRATING COMPLEX
AUTHENTICATION AND FRAUD
DECISIONING
Banks are increasingly embracing new chan- OMNICHANNEL FRAUD PROTECTION
nels to offer seamless omnichannel services FIs and PSPs in Europe are particularly inter-
to their customers, but doing so often creates ested in robust fraud-busting technologies for
silos that handle large amounts of collected SCA compliance, which is mandated under
data. This creates new security challenges PSD2. Requiring multifactor authentication
as firms must learn to centrally manage their (MFA) could add frictions to companies’ pay-
fraud protection methods while also gauging ment systems and customer experiences, but
threats across many different channels. such tools are necessary to enabling smart
Fraud orchestration can help solve this issue authentication and compliance decisions. ML
as it allows banks to build holistic fraud pre- models, which cause minimal payment fric-
vention defense systems and gain 360-degree tions and optimal fraud protections, could be
views of their customers. It can also help FIs deployed to effectively orchestrate complex
assess data from multiple channels, create authentication decisions as fraud becomes
seamless connections and enable them to more sophisticated.
make complex authentication decisions and
detect fraud in real time.DEEP DIVE 17
eCommerce fraud losses, including those ex- to complete transactions. A recent survey
perienced by banking services, are projected found that banks that were able to shift their
to reach $48 billion annually by 2023, with in-branch transactions to digital channels
synthetic identity theft representing a ma- saw their digital sales volumes increase 26
jor source of loss for FIs. Such schemes percent. It also reported that more than 25
see scammers piecing together consum- North American banks saw digital sales rep-
ers’ personal details, such as Social Security resenting approximately 10 percent of all their
numbers and birthdates, to create false identi- product sales. Banks that earn consumers’
ties that can be used for fraudulent purposes. trust by securing their mobile data and trans-
Estimates suggest that synthetic identity theft actions will likely see plenty of growth, as 40
is responsible for approximately 80 percent of percent of U.S. consumers now use mobile
the banking industry’s credit card losses. banking. Fraud orchestration will be key for
these FIs given that 93 percent of such trans-
Fraud orchestration combats these scams by
actions were flagged as fraudulent, however.
preventing personal data from being siloed,
instead transferring it from one channel to the TRACKING THE PAYMENT JOURNEY
next. This strong data connectivity reduces
POPs are important to omnichannel fraud de-
false positives and is agile enough to thwart
tection because they enable banks to track
attacks before they happen, which is good
payments’ journeys from processing to clear-
news for FIs: Recent research showed that
ing to reconciliation. POPs can also help FIs
more than half of 43 surveyed banks recov-
improve customers’ experiences by creat-
ered less than 25 percent of their fraud losses.
ing smooth, secure payment systems and
BANKS BET ON DIGITAL BANKING interfacing with multiple payment gateways
— such as foreign exchange and tax engines
Banks that are expanding their services
— to reconcile transactions at checkout in
across multiple channels to accommodate
real time.
customers’ desires for speed and conve-
nience may also see new opportunities to If fraud orchestration platforms work as they
drive revenue. One report found that custom- should, they will not only fight digital crime,
ers who use at least three channels provide but also generate revenue and enhance cus-
double the revenue of those who use just one. tomer relationships — which would be a boon
to both banks and their clients.
Mobile channels are becoming increasingly
important revenue sources for FIs around the
globe as more consumers use such devices
© 2020 PYMNTS.com All Rights ReservedPYMNTS.com is where the best minds and the best content meet on the web to learn about “What’s Next” in payments and commerce. Our interactive platform is reinventing the way companies in payments share rel- evant information about the initiatives that make news and shape the future of this dynamic sector. Our data and analytics team includes economists, data scien- tists and industry analysts who work with companies to measure and quantify the innovations at the cutting edge of this new world. Simility’s portfolio includes real-time risk and fraud-decisioning solutions that take data-first ap- proaches to detecting fraud vulnerabilities. The solutions combine AI and Big Data analytics to help businesses address fraud challenges as well as reduce friction and build trust in their brands. To learn more, visit www.simility.com. We are interested in your feedback on this re- port. If you have questions, comments or would like to subscribe to this report, please email us at frauddecisioning@pymnts.com.
The Merchant Fraud Decisioning Playbook may be updated PYMNTS.COM SHALL NOT BE LIABLE FOR ANY DAMAGES
periodically. While reasonable efforts are made to keep the WHATSOEVER, AND, IN PARTICULAR, SHALL NOT BE
content accurate and up-to-date, PYMNTS.COM: MAKES LIABLE FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, OR
NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, INCIDENTAL DAMAGES, OR DAMAGES FOR LOST PROFITS,
EXPRESS OR IMPLIED, REGARDING THE CORRECTNESS, LOSS OF REVENUE, OR LOSS OF USE, ARISING OUT OF OR
ACCURACY, COMPLETENESS, ADEQUACY, OR RELIABILITY RELATED TO THE CONTENT, WHETHER SUCH DAMAGES
OF OR THE USE OF OR RESULTS THAT MAY BE GENERATED ARISE IN CONTRACT, NEGLIGENCE, TORT, UNDER
FROM THE USE OF THE INFORMATION OR THAT THE STATUTE, IN EQUITY, AT LAW, OR OTHERWISE, EVEN IF
CONTENT WILL SATISFY YOUR REQUIREMENTS OR PYMNTS.COM HAS BEEN ADVISED OF THE POSSIBILITY OF
EXPECTATIONS. THE CONTENT IS PROVIDED “AS IS” AND SUCH DAMAGES.
ON AN “AS AVAILABLE” BASIS. YOU EXPRESSLY AGREE
THAT YOUR USE OF THE CONTENT IS AT YOUR SOLE SOME JURISDICTIONS DO NOT ALLOW FOR THE
RISK. PYMNTS.COM SHALL HAVE NO LIABILITY FOR ANY LIMITATION OR EXCLUSION OF LIABILITY FOR INCIDENTAL
INTERRUPTIONS IN THE CONTENT THAT IS PROVIDED OR CONSEQUENTIAL DAMAGES, AND IN SUCH CASES
AND DISCLAIMS ALL WARRANTIES WITH REGARD TO SOME OF THE ABOVE LIMITATIONS DO NOT APPLY. THE
THE CONTENT, INCLUDING THE IMPLIED WARRANTIES ABOVE DISCLAIMERS AND LIMITATIONS ARE PROVIDED
OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR BY PYMNTS.COM AND ITS PARENTS, AFFILIATED AND
PURPOSE, AND NON-INFRINGEMENT AND TITLE. SOME RELATED COMPANIES, CONTRACTORS, AND SPONSORS,
JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF AND EACH OF ITS RESPECTIVE DIRECTORS, OFFICERS,
CERTAIN WARRANTIES, AND, IN SUCH CASES, THE STATED MEMBERS, EMPLOYEES, AGENTS, CONTENT COMPONENT
EXCLUSIONS DO NOT APPLY. PYMNTS.COM RESERVES THE PROVIDERS, LICENSORS, AND ADVISERS.
RIGHT AND SHOULD NOT BE LIABLE SHOULD IT EXERCISE
ITS RIGHT TO MODIFY, INTERRUPT, OR DISCONTINUE THE Components of the content original to and the compilation
AVAILABILITY OF THE CONTENT OR ANY COMPONENT OF produced by PYMNTS.COM is the property of PYMNTS.
IT WITH OR WITHOUT NOTICE. COM and cannot be reproduced without its prior written
permission.You can also read
