the "f" wordFraud Prevention and Detection – Challenges and Opportunities
From May 31st to June 1st Mercury Processing Services International held the European Fraud Sharing Group Meeting and annual Fraud Forum in Ljubljana, Slovenia.
More than 200 fraud specialists from all over Europe to share and exchange information and experiences in fraud prevention and security gathered at both events. We talked to some of them for the InPayments magazine, about themes such as using AI and Big Data in fraud prevention, transaction laundering, Strong Customer Authentication and managing fraud in an omnichannel world.
INTERVIEW: GROZDANA MARIĆ
But first, we had a quick chat with Grozdana Marić, Fraud Product Manager at Mercury Processing Services International. We talked to her about payment card fraud in general and the latest trends.
How has the payment card fraud evolved in Europe?
Payment card fraud is among the fastest-growing and best-known means of generating criminal profit. It has evolved from being committed by casual fraudsters to being committed by organized crime and fraud rings that use sophisticated methods.
The sophistication of their tactics makes detecting fraud difficult, especially as the volume of bank transactions grows by about 10% every year.
What are the latest trends in payment card fraud and in the fraudsters approach?
Today, the organized fraudsters have a maturing professional approach, global connections, technical expertise and technology, share and sell data on the black market, leverage larger data sets, are flexible and constantly adapting.
What is the true cost of fraud in the payment card industry?
Losses measured by accumulated fraud are usually just the tip of the iceberg, the real damage is far bigger. Therefore, it is important to be aware of the true costs of fraud, which are related to reputational damage, costs of promotional campaigns aimed at recovering customers and rebuilding trust/loyalty, investigation costs, attrition, re-acquisition, costs related to reissuance of cards, regulatory fines.
How does Mercury Processing Services International fight fraud?
In order to provide a superior fraud management service, Mercury Processing Services International delivers Lynx Fraud Management System for detecting and preventing payment card fraud across multiple products and channels. By using our system, banks are enabled to perform highly automated and sophisticated screenings of authorizations and to flag suspicious ones, based on business rules and artificial intelligence.
What is the future of fraud detection and prevention and how does Mercury Processing Services International follow these trends?
Fraud is a moving target and requires the continued evolution of fraud protection and prevention services. We have to look at it in the context of the rapid evolution of technology that gives criminals more ways than ever to commit fraud and in the context of the transaction environments’ continuous growth in size and complexity of payments and payment methods. Therefore, Mercury Processing Services International is constantly focused on addressing new fraud threats and challenges.
PODCAST: EFFECTIVE FRAUD PREVENTION THROUGH IN-HOUSE SOLUTION
Find out more about Mercury Processing Services International's Lynx Fraud Management System from the Team Leader and Senior Product Owner Ivica Jurčić, and Chief Solution Architect Hrvoje Rončević.