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Vantiv Eyes Global Expansion, Acquires WorldPay for Nearly $10 Billion

Published on July 5, 2017, by fraudpractice in Merger & Acquisitions.

Vantiv, the largest acquirer in the U.S. based on transaction processing volume, is now a significant global competitor as well, following the $9.9 billion dollar acquisition of UK-based WorldPay, who has over 400,000 processing clients across 146 countries.

It was announced on July 5th that Vantiv would acquire global processor WorldPay for $9.9 (£7.7) billion in the form of cash, a converted rate of shares to Vantiv and a cash dividend with total value representing an 18.9 percent premium compared to the closing price for WorldPay on Monday July 3rd.

Tags: acquirer, acquisition, card present fraud, ecommerce, M&A, merger, payment processing, payments, Vantiv, WorldPay

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The Fraud Practice Releases a New Risk Management Technique White Paper Discussing Confidence Indicator Services

Published on June 6, 2017, by fraudpractice in Fraud Prevention, Industry News, Press Release, Sales Conversion, Technique Refreshers.

“Using Confidence Indicator Services to Enhance Qualification Capabilities in Online Applications” is the latest white paper from The Fraud Practice; released today and available free to download. This white paper defines and discusses Confidence Indicator services in the context of a “digital body language,” which can provide a view and indication of how a consumer answered critical risk questions that may validate or call into question what the user input or said. This can allow organizations to better detect high risk applicants, and accept more applicants where data was a limiting factor.

This risk management technique is defined and discussed in terms of how it works, the signals it provides and business use cases, to include application on-boarding, credit issuance and loan origination, insurance claims fraud and more.

Download the Free White Paper

Tags: application fraud, confidence indicator, confidence indicator services, credit risk, free white paper, identity fraud, loan stacking, online lending, white paper

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Superior Credit Consumers are Highest Risk Loan Stackers

Published on June 6, 2017, by fraudpractice in Fraud Prevention, Industry News.

Taking out multiple loans to get more funding than would be approved for any one loan is something that both real consumers do, and fraudsters do when trying to get as much as they can out of a stolen identity. The challenge for online lenders is not just recognizing loan stacking, but recognizing which type of applicant it is. Recent data from a credit bureau shows that higher credit score consumers have higher charge-off rates with loan stacking, likely resulting from the fact that these are the identities fraudsters target to steal and monetize.

With cases of identity theft or the use of “clean” identities, it is difficult to distinguish third party fraud from legitimate consumers. Organizations can track loan or application velocity, but typically can’t see the intent of the applicant, and not all loan stacking is bad. According to data from credit bureau TransUnion comparing consumer loans rated prime, loans that were stacked with others were 3.2 percent more likely to end up in default compared to non-stacked loans. It is expected that the default rate would be higher, as consumers who are loan stacking may over extend, but the default rate isn’t significantly higher compared to single or non-stacked loans.

Tags: application fraud, credit fraud, credit risk, identity fraud, identity theft, loan fraud, loan origination, loan stacking, new account fraud, online lending, velocity

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FTC Focuses on Synthetic Identities as New Account Fraud Continues to Rise

Published on June 6, 2017, by fraudpractice in Fraud Prevention, Industry News.

According to recent data and studies, identity fraud and new account fraud continue to plague both banks and consumers, with 80 percent of fraudulently opened credit card accounts in the U.S. applied for with synthetic identities and new account fraud on payment cards increasing by 11 percent in the UK over the last year.

New account fraud is an issue worldwide. According to Financial Fraud Action UK, a consortium of banks, issuers and acquirers fighting the collective issue of payment fraud, new account application fraud grew to £15.6 million last year, an increase of 11 percent from 2015.

Tags: application fraud, card fraud, credit card fraud, FTC, identity fraud, identity theft, morphing fraud, new account fraud

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First Data, North American Bancard Each Complete Major Payment Acquisitions

Published on June 1, 2017, by fraudpractice in Merger & Acquisitions, Payments.

At the end of May, First Data announced they had reached agreement to acquire another large, publicly traded payment processor, CardConnect, for $750 million. This occurred just two weeks after the privately held North American Bancard Holdings LLC agreed to acquire Total Merchant Services Inc., for an undisclosed amount, to become the 7th largest processor by merchant locations in North America.

Tags: acquirer, acquisition, First Data, merchant acquirer, merger, payment processing, payments

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eCommerce and Mobile Banking Fraud Lead 2016 Fraud Increase in the UK

Published on April 17, 2017, by fraudpractice in Fraud Prevention, Industry News.

Financial Fraud Action (FFA) UK, a financial services industry research and reporting group, recently released their 2016 year-end payment card and banking fraud totals which showed an increase in card fraud overall, primarily led by card not present channel fraud. Changing trends include an increase in fraud attempts but targeting lower order amounts compared to last year, a shift from malware targeting banks to fraudsters directly targeting consumers and consumer account credentials, and mobile banking app fraud losses more than doubling from 2015.

The Financial Fraud Action UK organization is composed of major banks, payment acquirers and card issuers in the United Kingdom, and members report payment card, remote banking and check fraud losses each year. Over the years FFA UK has tracked significant increases in total payment card fraud against UK-issued cards, growing from £341 million in 2011 to £618 million in 2016. This marked a nearly 10 percent increase just from 2015, when the total fraud loss on UK-issued payment cards was £567 million.

Tags: card fraud, CNP, CNP fraud, counterfeit card fraud, data breach, ecommerce, ecommerce fraud, fraud, identity fraud, M-commerce, mCommerce, mobile banking, mobile banking fraud, mobile fraud, third party fraud, UK, United Kingdom

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Post-EMV eCommerce Fraud Growth Abetted by Data Breaches

Published on April 12, 2017, by fraudpractice in Fraud Prevention, Industry News.

According to recent data from Experian, eCommerce fraud was 15 percent higher in the first half of 2016 compared the same period the year before, but for the full-year eCommerce fraud attack rates increased to 33 percent. This implies an even greater increase in CNP fraud in the second half of the year, and it is believed that the transition to EMV or chip cards is the primary reason behind this growth.

In the United States, the EMV liability shift occurred on October 1, 2015 and the rollout has been gradual. Likewise, the increase in CNP fraud was notable but in-line with recent years’ growth. By the end of 2016, nearly 2 million U.S. merchant locations were equipped to accept EMV cards, or 39 percent of all merchant locations, according to Visa. It was in 2016, and seemingly more so in the second half of the year, that the industry really started to experience the shift of more fraud attempts to the customer not present channel.

Tags: card fraud, Card Not Present, card not present fraud, Chip Cards, CNP, CNP fraud, counterfeit card fraud, ecommerce fraud, EMV, fraud, identity fraud, online fraud, third party fraud

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MasterCard to Acquire NuData Security

Published on April 12, 2017, by fraudpractice in Fraud Prevention, Industry News, Merger & Acquisitions.

At the end of March, MasterCard announced they had entered into an agreement to acquire NuData Security, the behavioral biometric and behavioral monitoring vendor based in Vancouver, Canada, for an undisclosed amount. A pioneer in the behavioral monitoring space, NuData offers MasterCard valuable technology and patents related to performing authentication covertly across all types of devices. This was the third major acquisition of a risk management solution provider by a card association in less than six months, and the second time that has happened in the past six years.

Maybe it’s coincidence, but things tend to come in three’s. After Visa acquired CardinalCommerce and American Express acquired InAuth, each in December, 2016, MasterCard announced a major risk management acquisition before the end of the first quarter. It’s not the first time the three have acquired major risk vendors around the same time. In 2010 Visa acquired CyberSource for $2 billion, MasterCard purchased DataCash for $520 million, and American Express acquired Accertify for $150 million. While terms from each of these acquisitions were public, the financial terms have not been disclosed for the three more recent deals announced by these card associations.

Tags: acquisition, AmericanExpress, authentication, behavioral biometrics, behavioral monitoring, CardinalCommerce, consumer authentication, M&A, MasterCard, merger, NuData, Visa

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Amazon Debuts Cash-based Alternative Payment Method

Published on April 12, 2017, by fraudpractice in Industry News, Payments, Sales Conversion.

Amazon Cash is the latest payment method and feature supported by Amazon and was designed for the under- and unbanked. Consumers can request a barcode that is linked to their Amazon account, and when checking-out at a partner retail store location the customer can add between $15 and $500, using cash, which will become stored credit on their Amazon account. Amazon Cash was announced on April 3rd and is now available in the United States.

This new payment method immediately becomes a new option for U.S. Amazon customers. According to the FDIC, 7 percent of U.S. households were unbanked in 2015, while an additional 20 percent were considered underbanked. Amazon Cash provides a more direct way for these consumers, 27 percent of U.S. households, to make purchases with the online retailer.

Tags: alternative payments, amazon, Amazon Payments, Cash Alternatives, ecommerce, payments, paypal, sales conversion, unbanked, underbanked

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Global Spending to Increase on Fraud Detection, Cybersecurity and Big Data Analytics

Published on February 6, 2017, by fraudpractice in Industry News.

Multiple studies and sources are coming to the same conclusion: organizations will be spending more on risk management and data analytics to keep up with growing fraud and business trends. This includes $9.2 billion spent on online fraud prevention services, $170 billion spent on cybersecurity and over $200 billion spent on big data analytics globally by 2020.

With payment and online fraud continuing to increase globally, Juniper research predicts annual spending on online fraud detection services across eCommerce merchants and financial institutions will reach $9.2 billion worldwide by 2020. This is just one aspect of risk management that online merchants and financial institutions have to deal with. Gartner estimates the global cybersecurity market exceeded $75 billion in 2015.

Tags: analytics, big data, Cybersecurity, fraud, fraud prevention, fraud prevention services, fraud vendor, risk management

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Page 5 of 45‹ Previous 1 2 3 456 7 8 9 Next ›Last »

Vantiv Eyes Global Expansion, Acquires WorldPay for Nearly $10 Billion

The Fraud Practice Releases a New Risk Management Technique White Paper Discussing Confidence Indicator Services

Superior Credit Consumers are Highest Risk Loan Stackers

FTC Focuses on Synthetic Identities as New Account Fraud Continues to Rise

First Data, North American Bancard Each Complete Major Payment Acquisitions

eCommerce and Mobile Banking Fraud Lead 2016 Fraud Increase in the UK

Post-EMV eCommerce Fraud Growth Abetted by Data Breaches

MasterCard to Acquire NuData Security

Amazon Debuts Cash-based Alternative Payment Method

Global Spending to Increase on Fraud Detection, Cybersecurity and Big Data Analytics

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