28 March 2022
The rise in e-commerce during the pandemic poses serious challenges to technology fraud and increased cybersecurity risks. Fintech businesses in the process of actively stimulating sales and opening accounts to new customers are increasingly exposed to the risk of losing trust and stability. In 2021, PayPal CFO John Rainey said the company had identified 4.5 million accounts that it said were “created illegally”. At the same time, the company’s shares fell 25% after it reported a significant decline in profitability and a slower growth strategy. The risks of PayPal’s marketing campaign, which offered to contribute USD 5 or USD 10 to a new customer’s account if he signed up for PayPal or Venmo, led to problems with software and bots that worked simply for profit rather than real account registration and financial transactions. PayPal has added 120 million new customers in 2021 but has lost profitability due to operational fraud. Other fintech companies have also faced the problem of fraud. Car rental companies such as Avis and Hertz have stopped accepting cards from programs such as Chime, Cash App, and PayPal, and stole money from Chime users from their accounts. Robinhood has created a list of banks from which it prohibits transfers to stop the flow of fraud losses. As a result, operational risk management and the development of a balanced approach to customer engagement are becoming of great importance for fintech world in 2022. Improving cybersecurity and reducing the cost of online business fraud requires a shift in strategic focus from quantity to quality based on proper compliance. At 2AP with our Gateway. We protect your right to privacy. With the industry-wide spike in cyber crime, we’ve implemented an enhanced feature through our Watchdog fraud tool that will protect your merchant account from card-spinning or BIN testing attacks.
This is a proprietary set of pre submission rules we put in place on your merchant’s account to keep it protected. Watchdog eliminates runoff fees, protecting your MID from being shut off at the processor level.
The cost for this is $35 per month. You're are capped at $25/month, if your site is hacked and thousands of transactions are run, you're not paying all those gateway auth fees. Watchdog also prevents majority of the fraudulent transactions from reaching the bank processor. This is basically be used as an insurance policy to protect your merchant MID. https://sandbox.2apgateway.com/docs/
Commentaires