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Couple Serving 5 Years for $1.2 Million in Friendly Fraud

An Indiana couple made over 2,700 purchases from Amazon over the period of a few years, creating new accounts and morphing their identities to continually report goods as damaged or never having arrived. The professional fraudsters stole more than $1.2 million in electronics, but now each face more than five years behind bars.

Erin and Leah Finan purchased laptops, video game systems, cameras and other electronics from Amazon before reporting the goods damaged. From 2014 to 2016 the couple created hundreds of fake accounts to make thousands of purchases, getting new items sent at no charge. They then resold these electronics to an associate, sentenced to two years, who brought them to the black market.

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Hyundai Follows Ford and Chevy with Partnerships to Develop In-Car Mobile Payments

Hyundai recently announced they are developing a mobile wallet while also partnering with a restaurant and two major gas stations for accepting payments made from a car’s touchscreen, or what is known as an infotainment system. This approach is similar to Ford, who offers a mobile app with wallet for storing payment cards, while Chevy has partnered with Shell who holds the payment credentials within their own app.   

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How WireCash Manages Fraud and Found Success Underwriting Digital Money Transfers to High Risk Markets

How well would your fraud management program perform if your organization depended on it for doing business with customers from countries like Ukraine and Nigeria? Now what if we said your business was facilitating money remittances to these countries? WireCash is doing just that, and we sought to uncover how this could be possible by talking directly with the company that found success at the intersection of one of the highest risk industries and some of the highest risk countries in terms of online fraud.

The use of custom modeling and risk analytics also allows WireCash to be more consumer-friendly than they were in their ATMCash days, and compared to most online MSBs. While WireCash may sometimes require strong authentication or verification techniques, they try to eliminate the need for this and reduce friction for most new customers through use of risk modeling and amassing many neutral or low risk signals. They have also leveraged this experience and insight to enter new markets where others wouldn’t go or would only tread lightly. WireCash today helps consumers send money to Nigeria, Ukraine, Russia, Armenia and other countries that present high risk. Money Service Businesses providing remittances to these countries have tended to offer limited services or maintain several day waiting periods.

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Many Not Ready for GDPR Requirements Including 72 Hour Breach Notification

The European Union’s General Data Protection Regulation (GDPR) goes into effect May 25th and will apply to any collecting and storing information on EU consumers, with fines for non-compliance as high as €20 million or 4 percent of annual revenue. Despite the hefty potential penalties, just 52 percent of organizations said they will be GDPR compliant by the May deadline in a recent survey.

Replacing the EU Data Protection Directive, GDPR brings several new requirements and challenges for organizations that use data to track online behavior or market goods or services to consumers in the EU, regardless of where the organization is based.  Comprised of 91 articles, GDPR has been a challenge for many organizations who must adjust their data collection policies and disclosures.

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NYPD Trials New Skimming Detection Device “Skim Reaper”

A computer science professor and two graduate students invented a device used to check ATMs and card readers to detect the presence of a skimming device. Dubbed the Skim Reaper, the New York Police Department has been using a handful of these devices since February to combat card skimming.

Card skimming at ATMs, gas pumps and other locations is a major source of the compromised payment card information used to commit fraud today. Card skimmers install an additional piece of hardware known as a read head to copy a payment card’s data, but a new device was designed to detect their presence, while providing an alert to the ATM user that a card skimmer may be installed.

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Capital One Acquires ATO Alert Company Confyrm

Capital One, one the largest card issuers in the United States, has acquired Confyrm, a technology startup focused on reducing account takeover by use of shared signals across different types of partners. For example, when a user account resets their password at a financial institution, the FI is warned that the email address associated with their account recently had a password change as well.

Confyrm was co-founded by three individuals in 2013, including CEO Andrew Nash who was previously Director of Identity Services at Google, Senior Director of Consumer Identity at PayPal and Director of Technologies at RSA. Beyond acquiring Confyrm’s partner platform and technology, Capital One also gains deep identity management and technology experience with Nash, who will join Capital One as VP of Consumer Identity Services.

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FTC Chair Nominee and New Federal Reserve Chairman Each Mention Data Breaches as a Critical Concern

As the FTC considers and confirms nominees to fill vacant commission seats, those interviewed speak to the still growing threat of data breaches and say this is a top priority for the government agency. Meanwhile, the House Financial Services Committee asks new Fed Chairman Jerome Powell what approach he will take to secure data, following more than 50 data breaches involving the Federal Reserve in the last seven years.

In a Senate confirmation hearing with Joseph Simmons, one of three people recently nominated to chair the Federal Trade Commission (FTC), the anti-trust lawyer spoke to the threat of data breaches that has continued to increase. “They’re becoming much more significant, much more frequent, and I think that’s a real serious concern for us and I think we need to pay much more attention to it,” he said.

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