{"id":2812,"date":"2022-01-28T05:31:38","date_gmt":"2022-01-28T05:31:38","guid":{"rendered":"https:\/\/africanamericanvoice.net\/?p=2812"},"modified":"2022-01-28T05:31:38","modified_gmt":"2022-01-28T05:31:38","slug":"4-fraud-fighting-technologies-make-online-shopping-and-banking-safer","status":"publish","type":"post","link":"https:\/\/africanamericanvoice.net\/?p=2812","title":{"rendered":"4 Fraud-Fighting Technologies Make Online Shopping And Banking Safer"},"content":{"rendered":"

By<\/span>\u00a0Abigail Klein Leichman<\/a><\/p>\n

<\/span><\/p>\n

Banking and shopping online have never been more popular as a result of the worldwide pandemic and the convenience of accomplishing these tasks 24\/7 from home.<\/p>\n

Unfortunately, the rise in transactions has come with an unwelcome companion: a rise in fraud.<\/p>\n

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Online fraud includes false or illegal transactions using stolen payment or identity information. There\u2019s also \u201cfriendly fraud,\u201d where a customer instructs the payment provider to cancel payment on a received item or service, resulting in costly chargebacks to the merchant.<\/p>\n

Experts estimate that online retailers spend 7 percent of their annual revenue dealing with the average 10 percent of transactions that are fraudulent. The hardest-hit industries are airlines, computer\/electronics retailers, and money-transfer services.<\/p>\n

Fraud also hurts consumers because anti-fraud measures can slow or even stop honest transactions. Residents of countries with a high percentage of fraudulent transactions may find themselves blacklisted from online retailers and financial institutions that got burned too often.<\/p>\n

Several Israeli companies have developed sophisticated anti-fraud technologies to protect both sides and simplify weeding out bad actors. Here we review four of them.<\/p>\n

Riskified<\/strong><\/p>\n

As mentioned above, friendly fraud occurs when consumers dispute charges for something they received, rather than returning the item. Maybe their kid bought it without their knowledge, or maybe it\u2019s an impulse buy that they later regretted.<\/p>\n

Either way, the merchant gets hit with a chargeback fee unless it can prove the purchase was legitimate. Last year, friendly fraud cost merchants some $125 billion.<\/p>\n

Eido Gal and Assaf Feldman founded\u00a0Riskified\u00a0<\/a>in 2013, offering a unique chargeback guarantee. Today it works with three of the 10 largest e-commerce companies and has processed more than a billion orders.<\/p>\n

\u201cWhen order information comes to Riskified in real-time, we decide in a second or two whether to accept or reject the order, using sophisticated machine-learning models,\u201d said Elad Cohen, Riskified\u2019s vice president of data science.<\/p>\n

\u201cWe only get paid for the orders we accept. If we get it wrong, we pay the entire chargeback fee.\u201d<\/p>\n

Riskified\u2019s service reduces fraud-related costs by as much as half, says Cohen. \u201cOur fee is substantially lower than their chargeback fees, and they don\u2019t have to pay someone to do it in-house.\u201d<\/p>\n

But the main benefit is that Riskified\u2019s automated process increases order approval rates up to 20 percent. That\u2019s because human risk assessors tend to err on the safe side, rejecting suspicious transactions or even blacklisting entire countries.<\/p>\n

\u201cFor customers, we make e-commerce much more accessible,\u201d says Cohen.<\/p>\n

For merchants, additional services include using data to build a case for banks to dispute friendly fraud, determining if a customer is abusing free return or special-offer privileges, and more.<\/p>\n

With more than 650 employees \u2014 two-thirds in Israel, the rest in New York, and smaller branches across the globe \u2014 Riskified went public last July and works with clients including Acer, Trip.com, and Ticketmaster.<\/p>\n

Justt<\/strong><\/p>\n

Justt<\/a>\u00a0is another Israeli startup helping global merchants fight false chargebacks with smart technology.<\/p>\n

Founded in 2019 as AcroCharge, Justt uses machine learning and domain-specific technology to flag incorrect chargebacks and builds tailored solutions to gather and submit evidence on merchants\u2019 behalf.<\/p>\n

The company says it’s customized, fully automated approach defeats 85 percent of friendly fraud while eliminating the need for in-house chargeback mitigation programs.<\/p>\n

Founded by Israeli tech industry veterans Roenen Ben-Ami and Ofir Tahor, Justt recently raised $70 million in funding as it expands, now encompassing about 110 employees.<\/p>\n

One of Justt\u2019s customers, digital payments giant Melio, reports that its mitigation team was able to reclaim about 30 percent of false chargebacks before implementing the automated solution. The success rate then increased threefold.<\/p>\n

\u201cJustt\u2019s hands-off solution integrates with our card processor, allowing us to shift our focus from the never-ending task of fighting chargebacks to conquering our core business goals,\u201d said Matana Soreff, Melio\u2019s vice president of risk and compliance. Justt\u2019s customers pay a fee only after funds are recovered.<\/p>\n

\u201cThe chargeback system is fundamentally unjust, but many merchants view their losses as simply the cost of doing business. At Justt, we believe there\u2019s a better way, and those e-commerce sellers need someone in their corner as they navigate this archaic system,\u201d said Tahor, Justt\u2019s CEO.<\/p>\n

Biocatch<\/strong><\/p>\n

Cybercriminals increasingly try to bilk the elderly out of their life savings, taking advantage of seniors\u2019 lower level of digital-savvy.<\/p>\n

Using phone calls or text messages (to hide unfamiliar voices) pretending to be a grandchild in need of emergency cash, they may steal identity info to open a new account or persuade the victim to log into their bank account and then take it over.<\/p>\n

After determining that 40 percent of confirmed fraudulent credit-card applications involved a person with a declared age of 60 or older,\u00a0BioCatch<\/a>\u00a0recently launched its Age Analysis fraud-prevention solution for the 50 big financial institutions among its 100 clients in 20 countries.<\/p>\n

BioCatch was founded in 2011 based on military machine-learning technology to authenticate identities using behavioral biometrics \u2014 how you type, move the mouse or handle your smartphone. Even small differences in behavior suggest that a hacker, not the account holder, is at the keyboard.<\/p>\n

\u201cWhen you apply to open a bank account online you type in a lot of information. The rhythm of typing is different if you\u2019re doing it from memory or looking at a piece of paper,\u201d says BioCatch vice president of cyber, Oren Kedem.<\/p>\n

Knowing that typical cybercriminals are much younger than their victims, BioCatch taught its Age Analysis software to flag behavioral biometrics that doesn\u2019t match the purported age of the applicant.<\/p>\n

\u201cWe know how a person born in 1949 behaves online and how a person born in 1989 behaves online. If there\u2019s a mismatch, we alert the client. We see that age detection is quite accurate,\u201d says Kedem, especially when someone tries to open a new account.<\/p>\n

\u201cWe don\u2019t actively stop anything. We don\u2019t tip off the bad guys. We collect the data invisibly and provide insights that allow the client to make a decision whether to approve, decline, or ask the applicant to contact customer support.\u201d<\/p>\n

BioCatch has more than 200 employees, with research and development in Israel and offices in North and South America, Europe, Asia, and Australia.<\/p>\n<\/div>\n

Identiq<\/strong><\/p>\n

Identiq<\/a>\u00a0was established in 2018 with the idea of creating a peer-to-peer network that allows merchants to validate the identities of new users.<\/p>\n

\u201cLet\u2019s say you sign up for a ride-sharing service. They\u2019re putting you in a car with a stranger and need to know that you are who you say you are,\u201d said chief marketing officer Shmuli Goldberg.<\/p>\n

\u201cAside from the risks of credit card fraud, account takeover, and identity theft, it\u2019s also an issue of trust and safety. If you can be assured it\u2019s a real person, a huge amount of the problems of fraud and bad actors go away,\u201d says Goldberg.<\/p>\n

\u201cWe do that by enabling our clients to verify your identity with companies that already know and trust you and have your IP address and credit card numbers, such as your video streaming service or grocery delivery company.\u201d<\/p>\n

Identiq\u2019s algorithm-powered solution keeps user details anonymous and is both GDPR (European Union privacy law) and CCPA (California Consumer Privacy Act) compliant.<\/p>\n

\u201cWe use multiparty computation, a well-known branch of cryptography that makes sure we can run a computation on data we both have without either of us exposing that data to each other,\u201d Goldberg said.<\/p>\n

Working under the covers during the signup process, Identiq\u2019s scalable solution can handle hundreds of millions of inquiries simultaneously and instantaneously.<\/p>\n

\u201cTrusted users get a perfectly seamless experience. They\u2019re not treated as fraudsters, there are no more validating numbers or one-time verification charges. In the 1 percent where something doesn\u2019t match up, we alert the client that we never saw this person with a credit card before.\u201d<\/p>\n

Identiq is working primarily in large business-to-consumer sectors, such as ridesharing, financial services, retail, travel, gaming, dating sites, and social media.<\/p>\n

\u201cWe can be used not only at account creation, but also before a customer places a huge order, or reactivates an existing account. A good user would be expected to have a range of companies across industries that know this user\u2019s name, email address, and phone number,\u201d Goldberg says.<\/p>\n

Produced in association with \u00a0<\/i>Israel21c<\/i><\/a>.<\/i><\/p>\n

Source: Zenger News<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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