new world, new fraud, new prevention

Fraud Prevention in the Midst of the Digital Revolution

We wanted someone knowledgeable and experienced to write an introduction to our feature theme and our minds immediately went to Jelena Kolega, Head of Product Development at Mercury Processing Services International. Jelena is also Head of our Fraud team, with a lot of hands-on experience in the field.

Jelena_Inpayments-1.JPG

The digital revolution is transforming the financial landscape, but just as it has affected banks and fintechs, so has it affected fraud, providing both boons and obstacles to fraudsters, as well as those dedicated to detecting and preventing their activities.

We decided to dedicate this issue's feature theme to the various ways the digital revolution has brought new opportunities to cyberfraud attacks but also the many current and developing technologies and tactics to combat them.

We take a look at just how fraud affects not only the big players, but also those who often, erroneously, believe fraudsters will overlook them: the small and medium businesses - and we consider the relationship between SMBs and banks, where that relationship is experiencing strains, and what could be done to improve it.

And while we're on the topic of improvements, we've researched how user experience design deals with the increasing need for cybersecurity. Airplane travel is the number one travel method for a large percentage of the population and thus also a prime target for fraudsters. With airlines dealing with thousands of passengers daily, we consider some of the ways modern airline fraud can be combated.

Modern technologies sometimes give us the impression of living in a science fiction story and you'll believe it even more when we show you just how effective chatbots and behavioral analytics have already proven to fraud departments. Machine learning is definitely on the rise and it's making fraud detection easier and more streamlined.

Finally, we take a look at the implications of GDPR and PSD2 on cybercrime in general and online fraud in particular. According to the card schemes’ announcements, the upcoming new version of 3DS – 3DS2.0 – is expected to greatly influence and aid in fraud prevention, which is why we've taken a look at it, as well as considering the influence and impact social networks such as Facebook can have on fraud prevention.