On this week's episode, Karisse shares some of the topics of conversations she's had with several online retailers this week. She talks about an ATO attack ring that seems to enjoy credential stuffing on holidays, re-shipping mules targeting retailers this holiday season, and more attacks by "grinch bots".
Remember the headlines on ep. 47 about some merchants no longer accepting credit cards from certain digital and/or "neo banks"? Add Robinhood, the investment app to the list of merchants restricting payment acceptance from institutions they see a higher-than-usual fraud rate on. The trust within the payments eco-system is being broken, but it will be interesting to see the card brands and/or ACH networks' responses to these business decisions.
https://www.forbes.com/sites/jeffkauflin/2021/12/20/with-fraud-growing-robinhood-becomes-latest-fintech-to-block-customers-from-transferring-money-from-certain-banks/?sh=7f52c3b917fa
And late last week, the CFPB (Consumer Financial Protection Bureau) in the US announced opening inquiries into 5 BNPL (Bay Now, Pay Later) companies to better understand their business practices, policies, and how they affect their consumers. This does not mean that any of these companies have done anything wrong, but as a new, and popular new form of payment, the consumer protection agency wants to ensure they understand the business models.
However, one area of inquiry is actually a variable controlled by the BNPL's merchant partners, so there could be an impact on retailers' return policies as a result of the inquiry.
https://www.pymnts.com/bnpl/2021/merchant-policies-could-come-under-cfpb-scrutiny-as-part-of-bnpl-inquiry/
Fraudology is hosted by Karisse Hendrick, a fraud fighter with decades of experience advising hundreds of the biggest ecommerce companies in the world on fraud, chargebacks, and other forms of abuse impacting a company's bottom line.
Connect with her on LinkedIn https://www.linkedin.com/in/karissehendrick/
She brings her experience, expertise, and extensive network of experts to this podcast semi weekly, on Tuesdays and Thursdays.
Mentioned in this episode:
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