Rippleshot Blog

Google Pay and Apple Pay chargebacks fraud hardest to challenge

Posted by Rippleshot on Jan 19, 2022 2:05:58 PM

Originally Posted Dec 11, 2020 by Alex Rolfe

Nearly half (40%) of merchants are reporting a rise in friendly fraud over the past 12 months, but the majority are struggling to challenge Google Pay and Apple Pay chargebacks successfully, research by Ravelin finds.

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Topics: Industry News, Fraud, E-Commerce, Data Analytics

How Credit Unions Are Fighting Online Fraud

Posted by Rippleshot on Jan 19, 2022 1:53:17 PM

Originally Posted Jan 17, 2022 by PYMNTS.com

When you think of a credit union (CU), it’s easy to picture a place that values member relations and face-to-face banking.

While this business model has typically worked to the advantage of CUs, it can also leave some of these institutions ill-prepared for the COVID-fueled shift to digital-first banking — and the risk of online fraud that come with it.

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Topics: Fraud, Data Analytics

How Financial Institutions Use Machine Learning to Prevent Fraud

Posted by Rippleshot on Jan 12, 2022 4:16:48 PM

Originally Posted Jan 2022 by GN Feature Story

Banking and financial institutions lose billions of dollars because of fraud. Machine learning can help detect and prevent fraud. 

Machine learning algorithms can reveal fraud patterns much faster and more accurately than humans or traditional rule-based systems. Read this article to understand how exactly banks can benefit from ML-powered solutions in fraud detection.

Each year, banking and financial institutions from all over the world lose many billions of dollars because of fraud. Machine learning seems to be the most efficient technology for detecting and preventing fraud in this rapidly evolving sphere. From this article, you’ll understand how exactly banking and financial institutions can benefit from integrating ML algorithms. Plus, you’ll learn about the shortcomings of traditional fraud detection techniques.

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Topics: Fraud, Machine Learning, Data Analytics

Malware Data Breach Alert: Dickey's Barbecue Pit

Posted by Anna Kragie on Oct 22, 2020 3:15:00 PM

Dickey's Barbecue Pit, a restaurant franchise with 156 locations across 30 states, was hit by a malware-based, point-of-sale data breach. The details of the breach surfaced after Gemini Advisory, a cybersecurity firm, found the stolen cards on a Joker’s Stash, a hacker’s forum for stolen payment data. The data was traced back to the compromised point of purchase (CPP) — Dickey’s Barbecue Pit.

It's believed payment systems were compromised by card-stealing malware, with the highest exposure believed to be in California and Arizona. It’s believed the transactions were made with magstripe cards, and the breach could have occurred on a single central processor, according to Gemini. Reports indicate that since about mid-2019, credit card data from roughly 3 million payment cards were stolen. It's believed the +3 million credit cards stem from 35 states, spanning a time frame of over a year.

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Topics: Data Breach Ripples, Fraud

How AI Models Streamline Fraud Detection and Analysis

Posted by Anna Kragie on Oct 6, 2020 10:00:00 AM

With fraudsters exploiting new technologies and leveraging sophisticated tactics to compromise card credentials and account data, fraud analysts on the front line, like yourself, know they must have tools to move faster and smarter.

Tools that leverage AI models fit the bill for fraud managers looking to streamline fraud detection and analysis efforts. AI-powered models collate vast piles of data into actionable strategies for stopping fraud. All without you wasting hours of your time on analysis.

Artificial Intelligence and machine learning have become buzzwords in the fraud detection space, but not not all fraud leaders understand the vast benefits of this technology as it relates to optimizing your fraud mitigation efforts. Finding the right structure to integrate all the data that fraud managers must analyze into one system can be challenging. AI models set the right foundation to build from.

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Topics: Fraud, Machine Learning

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.

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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." 

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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. 

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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
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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. 

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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.

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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.

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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.

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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.

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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.

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Topics: Fraud