The May FraudTech Digest by Cybertonica

27 May 2021
May digital fraud tech digest cover

Welcome to our May Cybertonica FraudTech Digest! 

We’ve found the latest, fresh off the press news about payments and fraud prevention and have broken down the insights into bite-sized brain snacks in our FraudTech Digest.

Last month, we discussed Financial Crime and how banks are managing, catch up here.

In our May FraudTech Digest, we’re discussing:

  • 💰Financial Crime: Chargeback Disputes
  • 👨‍💻Financial Services: Securing Customer Experiences 
  • 📈eCommerce Fraud is on the Rise
  • 💸 European Payments to be Shaped by Digital IDs
  • 📱Irish Ransomware Attack: The Million Euro Cost
  • ⏳ FCA Extends SCA Deadline to Another Six Months
May FraudTech Digest #1
  • The Cybertonica team took part in the EPA’s Project Financial Crime, and contributed to publishing this month a whitepaper on #chargeback disputes and double credits.
  • The paper outlines the unsurprising rise in dispute resolution processes during the pandemic. There are unprecedented numbers of chargeback claims being made. Meanwhile, non-fraud dispute cases have risen by 333% as reported by the EPA.
  • What did we discover? There is a critical data gap between the #merchant and card issuer who receives the chargeback request. We’re encouraging data sharing and allowing real-time data to pass through the value chain. By doing so, we believe that we can improve the efficiency of the chargeback dispute process.

You can read the whitepaper and listen to our EPA’s Project Financial Crime Podcast on the Kalifa Review.

May FraudTech Digest #2
  • Financial services process and store billions of users’ personal data. Therefore, it is vital to consider delivering security by design and default when onboarding new clients.
  • A strong customer experience is believed to make the difference between securing a lifelong client and having low user retention rates. We need to create seamless and hyper-personalised user journeys. Transforming the customer experience is at the top of the customer success team agenda.
  • It’s all about enhancing convenience, availability, and brand assurance for customers. Having a centralised, unified platform with high security protocols can supercharge customer loyalty. While reducing cyber and #fraud risk as a bonus!
  • Meanwhile, @Monevo suggests that evolutions in financial technology and consumer adoption are on the rise but #banks have been slow to adapt their digital experience standards.
  • Integrating a fraud and #risk management solution like Cybertonica’s is vital for protecting financial institutions’ personal data on customers. There should be no compromise on trust, compliance, risk or #security.
May FraudTech Digest #3
  • Consumers are still shopping online within the comfort of their homes, and fraudsters are exploiting this at every opportunity.
  • The latest research conducted by Juniper Research estimates #eCommerce fraud will rise to $20Bn by the end of 2021 from $17.5Bn in 2020. This illustrates growth of around 18% in one year. The Chinese market accounts for over 40% of these fraud losses.
  • Profit margins are slimming and #merchants need to implement fraud prevention strategies that take advantage of behavioural analysis and leverage ML technology. 

Without adding extra friction to the checkout process, eComm360 Fraud Prevention is ready for your business. By providing actionable insights into merchant’s cyber and fraud risk in real-time and giving full visibility of compromised devices and rogue actors.

May FraudTech Digest #4
  • To provide citizens greater control over their online identity and data, the European Council has called for the development of a public electronic identification (e-ID) solution.
  • The European Commission set the target for 80% of EU citizens to be using e-IDs by 2030.
  • The Commission has agreed to submit a secure e-ID proposal for a European Digital Identification initiative by mid-2021.
  • However, pressure is mounting. There is a drive to create the Central Bank Digital Currency (CBDC), a new form of digital money issued by the Bank of England, and mainstream it across households and businesses.
  • It is imperative that banks design cost-effective and fraud-proof digital cash options to ensure anonymity.
  • Otherwise, CBDCs will be linked to the user accounts of individuals, exposing their personal data, credit history, account data and transactions.
May FraudTech Digest #5
  • Ireland’s health service was hit this month in a cyber attack by an international #cybercrime gang. 
  • A ransomware attack occurs when technology is infected with #malicious software, and users are left locked out with a demand to pay a ransom in exchange for the restoration of the functions of the computer.
  • The attack is expected to cost the health service around 10M euros to rebuild their IT systems. This is equivalent to $12.15 million dollars. While the network was down, COVID19 vaccinations and outpatient services were all cancelled.
  • There’s a data cost too. Some of the hospitals’ data was compromised, and officials do not yet know the extent of the data breach.
May FraudTech Digest #6
  • The FCA has delayed the implementation of strong customer authentication (#SCA) rules by a further six months to limit the disruption to consumers and merchants amidst the coronavirus crisis.
  • SCA compliance is a central element of the PSD2 legislation. 3DS represents a new industry standard that merchants must integrate into their stores to better protect businesses, transactions and customers. 
  • The deadline was previously extended to 14 September 2021 however under the new guidelines around the COVID19 regulations, full SCA #compliance will come into play by 14 March 2022.
  • The new rules focus around tightening security checks for eCommerce transactions, and ultimately the directive calls for an additional layer of authentication.

Finally, if you have news to discuss or share for our FraudTech Digest, our Cybertonica team of experts are ready to help.

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