Rippleshot Blog

Why Fraud Analysts and Managers Need Machine Learning and AI Tools

Posted by Anna Kragie on Aug 14, 2020 10:00:00 AM

We hear many common pain points from fraud analysts and managers.

“I don’t know what fraud risks are coming my way…I worry about the high-dollar events I can’t see coming…fraud analysis takes too long…I miss too much fraud until after it happens…I can’t do my job without an entire team of fraud analysts.”

The list goes on and on — and these pain points escalate when big fraud events hit. 

With the right implementation of AI, machine learning and big data to know where, when and how the biggest merchant risks are impacting your cardholders, these pain points can be proactively alleviated. Instead of relying on reactive strategies that cause your fraud team to respond to incidents as they are occurring, or after it’s too late to stop their spread, the application of the right data and technology can help your team get early warnings about where fraud is occurring before it hits your institution.

Read More

Topics: Fraud, Machine Learning

Fraud Detection and Prevention Market: Fraud Analytics Adoption Trends

Posted by Anna Kragie on Aug 7, 2020 2:34:08 PM

New data from a report published by Fortune Business Insights underscores the need for financial institution leaders and fraud managers to align their digital transformation and fraud detection and prevention goals. This report specifically highlights how today's fraud trends have spurred faster adoption of technologies that rely on big data and predictive analytics to detect fraud.

An increased demand for solutions that rely on predictive analytics to detect fraud that's occurring and prevent potential fraud through automated pattern analysis, has paved the way for financial institutions to proactively protect their customers. The application of AI and machine learning has given fraud managers the necessary tools to prevent payment fraud before it occurs, and reduce fraud losses and associated costs when they do occur.

The rise in online fraud on a global scale has caused Fortune Business Insights to project the global fraud detection and prevention market to grow to $110.04 billion by 2026, a 25% growth in a 6-year period. The report specifically notes why machine learning and AI-based fraud detection in the banking sector is fueling the fraud detection and prevention market growth. The report underpins one key obstacle that's holding many financial institutions back: "Limited Data Visibility Often Produces False Positives Outcomes." 

Read More

Topics: Fraud

Machine Learning Benefits for Community Banks and Credit Unions

Posted by Anna Kragie on Jul 17, 2020 12:18:31 PM

Two findings from a recent industry study highlight the benefits AI and machine learning and what role these technologies play in the digital transformation of community banks and credit unions.

1. "New technologies will drive banking transformation over the next 5 years."

2. "Artificial intelligence will separate the winners from the losers in banking."

This report underpins the impact COVID-19 is having on financial institution cloud technology investments and how advancements in machine learning-driven software will help them weather the storm. These insights, gathered from a poll of poll of top banking executives, points toward the need for greater digitization across the financial services ecosystem. Of course, this will also open up the floodgates for another problem: New channels for fraudsters to exploit and monetize. We've broken down how financial institution leaders can assess their fraud detection strategies, where machine learning plays a pivotal role in mitigating risk and why this matters for 2020's fraud trends. 

Read More

Topics: Fraud, Machine Learning

Webinar Recap: COVID-19 Impact on Fraud at Financial Institutions

Posted by Anna Kragie on May 1, 2020 9:00:00 AM

As banks and credit unions grapple with the impact of COVID-19 on their operations, the pandemic disruption is creating new opportunities for fraudsters and additional challenges for financial institutions. Rippleshot it making available its analysis based on its consortium data of thousands of financial institutions across the U.S.

Rippleshot’s CEO Canh Tran and Chief Data Scientist Randal Cox shared their research on the economic impacts of COVID-19 across the U.S., the evolving fraud trends, and mitigation strategies for your financial institution during a webinar on April 29. The presentation from their webinar is now available. 

The presentation addresses:

  • The fallout during past pandemics and economic shocks and the current economic impact across the U.S.
  • The significant risks to your financial institution, including broad expectations of decreases in transaction volumes over the near term.
  • How fraud has increased in frequency and volatility during a period where operations have not kept pace with increased risk.
  • Our predictions and mitigation strategies to respond this year to the growing fraud trends.
Watch the Webinar Replay
Get your copy of the presention
Read More

Topics: Fraud

Online Payment Fraud Trends: Synthetic Identity Fraud On the Rise

Posted by Anna Kragie on Mar 6, 2020 8:54:02 AM

New insight from Juniper Research indicates that online payment fraud is expected to exceed $200 billion between 2020 and 2024. One key contributing factor is a rising number of synthetic identities created to perpetrate fraud. 

Read More

Topics: Fraud

Wawa Customer Breached Card Data Reportedly Being Sold On Dark Web

Posted by Anna Kragie on Jan 30, 2020 12:03:13 PM

Critical payment and credit card data from the Wawa convenience store breach has reportedly made its way to the dark web. Multiple reports, including Krebs on Security and Gemini Advisory, indicate that card data from more than  30 million Wawa customers was listed for sale Jan. 27 on the cybercriminal dark web forum Joker’s Stash.

Wawa acknowledged the reports, and released a statement saying it has "alerted our payment card processor, payment card brands, and card issuers to heighten fraud monitoring activities to help further protect any customer information." Wawa said it is working with federal law enforcement to determine the scope of the exposed Wawa-specific customer payment card data.

Read More

Topics: Fraud

ABA Report: CNP Fraud Losses Rise Sharply In Two Years

Posted by Anna Kragie on Jan 17, 2020 7:00:00 AM

A newly published report from the American Bankers Association reveals key themes across the banking ecosystem: Fraudsters keep targeting old habits, while newer trends are gaining traction quicker than ever. 

The ABA's report showed is that popular fraud trends like check fraud and deposit account fraud continue to contribute to overall fraud losses — accounting for roughly $2.5 billion collectively. The report also details how point-of-sale debit card fraud trends have been shifting over the past few years. When comparing 2016 to 2018 figures, data indicates that POS debit card fraud from counterfeit frauds now accounts for 25% of the losses, compared to 47% in 2016. Looking at card-not-present transactions (CNP), those losses are account for 42% of counterfeit fraud, when compared to a 30% loss in 2016. 

Despite the gloomy outlook on many of the fraud figures, the report indicated some bright spots for financial institution leadership.

Read More

Topics: Fraud

Are You Ready For The Holiday Card Fraud Rush?

Posted by Anna Kragie on Dec 6, 2019 1:15:43 PM

The uptick in holiday shopping card fraud leaves financial institutions in a tough position: Manage the fallout from higher declines or take on additional fraud risk to minimize cardholder disruption. Getting proactive about holiday card fraud can alleviate that burden.

To help you keep your cardholders protected, we've brought back our team's tips on how to manage incidents during this peak fraud season.

Read More

Topics: Fraud

Why Community Banks and Credit Unions Need AI and Machine Learning

Posted by Anna Kragie on Oct 17, 2019 7:00:00 AM

The push for greater digitization across the financial services ecosystem has created another challenge for financial institutions: New channels for fraudsters to exploit and monetize. 

Banks must keep up with customer demand and offer more to compete, but they must also be mindful of the security measures needed to keep up with these trends. This has left many FIs with a Catch-22. Fraud trends are changing as fraudsters get more sophisticated in the methods they use to breach personal and financial data.

Big banks are proactively working to get ahead of fraudsters, but many smaller institutions are still relying on time-consuming, manual methods to spot fraud patterns — or count on their call centers to alert them when fraud occurs. This approach involves a lot of upfront time, money and analysis, only to fall short in being able to accurately pinpoint where an organization's biggest risks and how to get ahead of those trends. 

 The bigger banks with deep pockets are gaining a FinTech edge with teams of data scientists and sophisticated software tools to keep their fraud detection tools aligned with what the market demands. Smaller FIs know to compete they must embrace new technologies such as AI and machine learning. But knowing how and where to start can be the biggest hurdle.

Read More

Topics: Fraud

Card Fraud Intel: 5 Resources For Financial Institution Leaders

Posted by Anna Kragie on Sep 6, 2019 3:29:07 PM

Staying up-to-date with the latest insight into payment fraud trends should top the priority list for any financial institution leader — but there aren't always enough hours in the day to keep up. That's one of the reasons Rippleshot exists. We're here to be your trusted advisor on what we're hearing in the marketplace about fraud trends, fraud benchmark data and what financial institutions should be doing about it all. 

To help keep your team educated about some of the latest trends we've observed, we've gathered 5 resources worth bookmarking when you need to report on how fraud trends are evolving and how your team can stay prepared. For those who would like to chat about these trends more in depth – or would like to share their own card fraud pain points - we are always here to listen and lending a helping hand.

Read More

Topics: Fraud

Financial Fraud Drives Multi-Factor Authentication Market

Posted by Anna Kragie on Jun 14, 2019 2:12:54 PM

Fighting the rise of payment fraud and cyber attacks has also fueled the growth of the fraud prevention, detection and risk mitigation markets. Among those trends is the multi-factor authentication market that continues to see new investments as financial fraud rises. 

A new report from Adroit Market Research indicates that by 2025, the multi-factor market will be worth roughly $20.41 billion — a growth of roughly 24% over the next six years. In North America alone — the top multi-factor authentication market — it's already more than a $1.8 billion industry. 

Read More

Topics: Fraud

April 23 Webinar: 'Synthetic Identity Payments Fraud'

Posted by Anna Kragie on Apr 23, 2019 7:30:00 AM

Synthetic identity fraud continues to be a hot topic across the financial ecosystem. The Fed is taking a deeper dive into this subject in a webinar today, April 23 at 11 a.m. EST, titled 'Ask the Experts: Synthetic Identity Payments Fraud.'

Among the featured panel members will be Justin Davis, fraud manager for Digital Federal Credit Union. Learn what this team of experts has to say on this subject. 

Register for the webinar

Read More

Topics: Fraud

How Credit Unions Can Mitigate Risk With Big Data, Analytics and Machine Learning

Posted by Anna Kragie on Apr 5, 2019 11:47:54 AM

In an era of rising card fraud and data breaches, credit union leaders are constantly analyzing how they are protecting themselves, and their members. One of the biggest problems today? Waiting for network alerts can be costly in terms of fraud loss and customer experience.

That was one perspective Rippleshot’s Customer Success Manager Jesse Sherwood shared in a webinar she recently participated in hosted by CUNA Mutual Group titled “Managing Risk Through Big Data, Analytics & Machine Learning.” Managing that risk, Sherwood said, starts with determining how data can be used to identify and act on fraud sooner.

“When we are thinking about data, we have to start with the problem. What problem are we trying to solve?,” Sherwood said during the webinar. “Data breaches are becoming more and more common and at very large scale. What this means is credit unions and members are being impacted. How do we protect them?”

The answers to those questions start by determining what tools can help credit unions boost fraud prevention performance.

Read More

Topics: Fraud, Machine Learning, Data Analytics

Gas Station Skimmer Fraud Triggers Secret Service Memo

Posted by Anna Kragie on Feb 22, 2019 3:39:04 PM

As payment technology evolves, so does the techniques of hackers. Gas stations skimming fraud has been one of the hot topics that continually falls onto the list of latest and greatest ways that fraudsters compromised payment card data at the pump. This is going to continue being a major topic of discussions across the financial services ecosystem long after the EMV deadline sets in for gas stations in October 2020.

This week, reports surfaced about gas station skimmer fraud. This issue made headlines after Krebs on Security reported about a memo sent out by the U.S. Secret Service. Krebs initially reported that the skimmers discovered were part of new bluetooth and SMS technology that were being used to steal payment data from consumer's devices. Krebs updated his report to include some clarifications after getting more information from sources close to the matter. He concluded that skimming fraud did occur, but not through SMS-enabled devices. 

Read More

Topics: Fraud

New Report: 2018 Holiday Card Fraud Benchmark Data

Posted by Anna Kragie on Jan 18, 2019 8:53:57 AM

It should be no surprise that payment fraud increased during the recent holiday season as this is the trend each year. What is noteworthy, based on the latest ACI Worldwide benchmark data report on this subject, is what's contributing to that increase.

The report indicates that cross-channel payment fraud increased 13 percent globally during the 2018 peak holiday season, with an increase in "buy online, pick up in-store" being a major target for fraudsters as card-present fraud becomes increasingly difficult. Card-not-present (CNP) fraud has also grown as a result.

Read More

Topics: Fraud