The Modern Trust & Safety Landscape


What is Payment Fraud?
Payment fraud is a type of financial crime that involves the unauthorized use of payment methods, such as credit cards, debit cards and online payments, to make unauthorized purchases or financial transactions.

It can be perpetrated in a variety of ways, from stealing another person's credit card information to using someone else's identity to obtain a loan or other financial assistance. Payment fraud can take place in the physical world, such as when a criminal uses stolen credit card information to make an in-person purchase, or in the digital world, such as when a hacker uses stolen information to make an online purchase. In either case, payment fraud can be financially devastating for the victim and can result in significant losses. As such, it is important to understand the various methods of payment fraud and how to recognize it.

What is Account Takeover?
Account takeover is a type of cybercrime where a malicious actor gains access to a user's online account. This can be done by a variety of methods, including phishing attacks, malware, key logging, and social engineering - or simply from the recurring data breaches.

Once the account is taken over, the attacker can use it to commit fraud or make unauthorized purchases. They can also use the account to access the user's personal information, such as emails and passwords, which can be used to gain access to other accounts.

Account takeover is one of the most common forms of cybercrime, and as technology evolves, attackers are becoming increasingly sophisticated in their techniques. To prevent account takeover, organizations and individuals must take steps to secure their data, such as using strong passwords, two-factor authentication, and monitoring accounts for suspicious activity.


What is Identity Theft?
Identity theft is a form of fraud which involves the theft of a person’s personal, financial or demographic information for malicious purposes. This type of crime has become increasingly common in recent years due to the rise of technology and access to personal data. 

Identity theft can include the use of stolen credit cards, fraudulent bank accounts, stolen Social Security numbers and other forms of personal information that can be used to commit financial and other types of fraud.

Some identity thieves also use their victim’s personal information to take over their identity, using it to apply for jobs, rent apartments, and even obtain a driver’s license or passport. Identity theft affects not only the victims, but also their families, friends, employers, and financial institutions.


What is a Fraud Platform?
A fraud platform is a computer system or software application used to detect, prevent, and manage fraudulent activity. This type of platform is typically used by organizations to help mitigate fraudulent activities through the user journey checkpoints - think account opening, logins, purchases, withdrawals etc. Fraud platforms may include any combination of data analytics, artificial intelligence, machine learning, and rules to better detect and analyze suspicious activities.

Assessing Fraud Platforms
When assessing fraud-prevention platforms, it is essential to consider a few essential features and capabilities. To begin with, it is necessary to consider the scope and sophistication of the platform's fraud detection abilities, including the types of fraud it can detect, the accuracy of the detection, and the speed of response.

Organizations should take into account the simplicity of implementation and the duration of the implementation process. Additionally, organizations should assess the platform's capacity to customize rules and processes.

Still not sure where to begin your search? This is not a comprehensive list, but it can kickstart your research (in no order):

What is KYC/KYB?
Know Your Customer (KYC) is the process of verifying the identity of your customers. This process is essential for businesses to ensure that their services are only being used by legitimate customers. KYC is an important part of a company’s due diligence process and helps to protect businesses from fraudulent activities as well as money laundering. 

KYC helps businesses build trust and confidence in their customers and ensure that their services are being used for legitimate purposes.With KYC, businesses can better understand the customers’ behaviors and preferences, allowing them to provide better service and more.

Know Your Business (KYB) is similar to KYC but with the obligation to verify the identity of any entity they do business with. This ensures the organization does not participate in money laundering, financing terrorism, or other financial crimes.

Assessing KYC/KYB Providers
Choosing the right KYC/KYB provider is essential for any business looking to comply with regulations and ensure a safe and secure customer onboarding process. When making a decision, there are a few key points to consider.

First and foremost, you should look for a provider that offers a comprehensive KYC solution that meets your specific needs. Many providers offer industry-specific solutions, so you’ll want to make sure your chosen provider offers the necessary features and functionalities for your particular industry.

You should also consider the provider’s availability and scalability. Ensure that the provider can handle an increasing amount of customer data as your business grows.

Still not sure where to begin your search? This is not a comprehensive list, but it can kickstart your research (in no order):

What is IDV?
Identity verification is a way of making sure that someone is who they say they are. It's an important process that helps protect people from online fraud and identity theft. Identity verification usually involves asking for certain information such as a name, address, phone number, date of birth, and other personal details. Using an IDV service helps you meet KYC/KYB obligations.

This information can then be used to check against databases, documents, or other sources to confirm the identity of the person. This helps to make sure that the person is who they say they are, and it also helps to protect their personal information. Identity verification is a really important process that helps to keep people safe online.

Assessing IDV Providers
Choosing an identity verification provider is an important decision, as it will be the foundation of your online business. When considering a provider, make sure to evaluate their security protocols, data privacy practices, and overall user experience. 

Look for an organization that offers advanced technologies like facial recognition, multi-factor authentication, and biometric signature verification. Additionally, make sure the provider is compliant with relevant regulations such as GDPR and PSD2.

Still not sure where to begin your search? This is not a comprehensive list, but it can kickstart your research (in no order):

What is MFA?
Multi Factor Authentication (MFA) is a security measure that uses more than one factor to verify your identity when you are trying to access something. It usually involves two or more steps and is a way to make sure that it is actually you that is trying to access something and not someone who is pretending to be you.

MFA utilizes a combination of something you know, something you have, and something you are. This can include a form of an authentication code, a biometric factor, such as a fingerprint, or a physical token such as a key fob or card. MFA is increasingly becoming a requirement for organizations to maintain the security of their systems and networks. It provides an additional layer of security and can significantly reduce the risk of a data breach or unauthorized access to the network.

Assessing MFA Providers
When choosing a Multi Factor Authentication provider, there are a few important factors to consider. Firstly, it is important to consider the reputation of the provider. Research the provider's track record, customer feedback, and security measures. Secondly, it is important to consider the features offered by the provider. Ensure that the provider offers features that are tailored to your business's needs, such as two-factor authentication, one-time passwords, and biometric authentication.

Still not sure where to begin your search? This is not a comprehensive list, but it can kickstart your research (in no order):

What is AML?
Anti-Money Laundering (AML) is a set of laws, regulations, and procedures designed to stop the practice of generating income through illegal activities. It is intended to prevent criminals from disguising illegally obtained funds as legitimate income. It is also used to prevent terrorists from financing their activities through money laundering. 

AML procedures typically include customer identification and verification, transaction monitoring, suspicious activity reporting, and recordkeeping. Financial institutions are required to implement AML measures to protect the integrity of the financial system, and to detect and prevent money laundering. 

AML regulations are continually evolving as criminals develop new methods of laundering money. Financial institutions must stay up-to-date on the latest AML regulations in order to remain compliant and protect their business

Assessing AML Providers
Choosing an anti-money laundering provider is an important step in protecting your business from financial crime. A good provider should have a deep understanding of the legal, regulatory, and technology requirements of anti-money laundering compliance. 

To build a world class AML program, your program must include transaction monitoring, real-time alerts, ID proofing tools, and PEP/sanction lists. 

Some of these functions we have already covered, and it can be easier to bring together the tools and data you already have to avoid redundancy.

Still not sure where to begin your search? This is not a comprehensive list, but it can kickstart your research (in no order):

What are chargebacks?
A chargeback is a form of consumer protection that allows customers to dispute a credit card transaction and reverse it to get their money back. Chargebacks are initiated by the customers and ultimately handled by the banks or credit card companies. 

In the event that a customer believes they have been charged incorrectly or have received a fraudulent transaction, they can file a chargeback and request a refund from their issuing bank. The issuing bank then works with the merchant’s acquiring bank to investigate the claim and either approve or deny the customer’s request. 

If approved, the customer gets their money back and the merchant’s account is debited for the full amount of the chargeback. Merchants can dispute chargebacks.

Assessing Chargeback and Dispute Providers
When deciding on the right chargeback dispute provider, it is important to consider the quality of the service they offer. A good provider offers tools and analytics to help you keep track of your dispute status, so you know exactly where you stand.

Additionally, they offer advanced dispute automation and AI-driven decision-making to improve the accuracy of your dispute decisions. With this technology, you can accelerate the resolution process and reduce the number of manual reviews required.

Still not sure where to begin your search? This is not a comprehensive list, but it can kickstart your research (in no order):

Why would you need data enrichment?
Data enrichment is an increasingly important practice in today's data-driven world. It allows organizations to gain a deeper understanding of their customers, uncover valuable insights about their own business, and improve operational efficiency. By leveraging external data sources and incorporating new data points into existing data sets, data enrichment can expand the scope of analysis and help businesses make more informed decisions. 

It can also help to reduce gaps in data, leading to more accurate and reliable results. With enriched data, businesses can gain a better understanding of what a legitimate user looks like, what a fraudster looks like, and enhance their customer experience. 

Data enrichment can help to improve the accuracy and performance of predictive analytics, making it a valuable tool for companies that rely on data-driven decisions.

Assessing Data Enrichment Providers
When selecting a data enrichment provider, it is important to consider a range of factors to ensure the provider is a good fit for your business needs. The provider should have a proven track record in the industry, a wide range of services offered, and the ability to provide high-quality data.

The provider should be able to provide custom solutions and insights that help to improve the quality of data you receive and meet the needs of your business.

Still not sure where to begin your search? This is not a comprehensive list, but it can kickstart your research (in no order):

Understanding the Digital Identity with Intelligence
Behavioral intelligence can help organizations identify and mitigate the risk of fraud by providing them with a more comprehensive view of an individual's or entity's behavior. 

By analyzing data from a variety of sources, such as transactions, interactions, and other activities, organizations can identify patterns of behavior that may indicate fraudulent activity. 

For example, if an individual's behavior suddenly changes in a way that is inconsistent with their usual patterns, it may be an indication that they are involved in fraudulent activity.

Still not sure where to begin your search? This is not a comprehensive list, but it can kickstart your research (in no order):

Why you need user journey visibility
User journey visibility is essential for businesses to understand their customers' experiences. By gaining greater insight into how customers interact with their products and services, businesses can make informed decisions to better meet their customers' needs. With enhanced user journey visibility, businesses can identify opportunities to improve the customer experience, reduce customer churn rates, and optimize sales funnel processes.

Fraudsters don’t care which team handles account creation, logins, payments, transfers, traffic, content moderation, or user acquisition. Meet a single attack with a unified defense. Unify your Developer & Trust teams in one tool to collectively protect users across silos.

Still not sure where to begin your search? You can start here

How do you know what is the right vendor for you?
Choosing the right vendor for your business can be a daunting task. It’s important to take the time to research and evaluate your options to find the best fit for your needs. First, make sure you understand your own business needs and goals, from there you can create a set of criteria that you need your vendor to meet.

The old way to find the right vendor for your business: research, sit through sales meetings, create internal business cases, run historical data backtest, fight for engineering resources, can’t test live, integrate, start over the process to adapt to emerging fraud.

The new way to find the right vendor for your business: research, live split test, click off under performing vendors, adapt to emerging fraud.

Beyond the individual use case assessments there are a few other considerations developers should consider to help you select the right tools and data for your business:

  • Implementation difficulty
  • Coding languages
  • Pricing model
  • Difficulty to connect with other tools
  • Expertise
  • Support

But what happens if it’s a toss-up between two providers? 

Test them against each other. Confirm with live data you are making the right business decision. Turn off the under performing vendors and move forward confidently with your data-backed decisions.

Still worrying about implementing the next security feature into your product? Be ready to handle malicious signups, account abuse, payments fraud, or whatever surprise comes your way. Connect with our TFS Experts to build the perfect strategy without losing developer momentum.