Retail-ECommerce

Mitigate Fraud, KYC & AML Risk

E-Commerce & Retail

Online Payment Fraud

Online payment fraud, estimated at $16 billion for goods and services, as well as money transfers, remain a threat. When the card is not present it is always more challenging to spot discrepencies. The growth stems from an increase in data breaches, as well as the growth in E-Commerce, increasing money flows and a greater proportion of mobile payments. The onus is on E-Commerce providers to make their platforms as secure as possible for their clients and suppliers.

Transaction Laundering Risk

E-Commerce platforms must also mitigate the risk of Transaction laundering (also known as credit card laundering or factoring): a form of money laundering, where the website owner is often unaware, and is estimated to top $200 billion in the USA alone. It is a merchant-based fraud scheme using legitimate payment ecosystems, to process payments for criminal enterprises selling firearms, illicit drugs, or financing terrorism via unregulated cross-border transactions. By funnelling unknown payments through verified merchant accounts, transaction launderers incorporate the three steps of money laundering: placement, layering and integration.

Card Present Fraud

Card Present Fraud still remains a serious issue for Retail when fake or stolen credit cards are presented. By asking customers to provide a form of ID, which can be validated quickly, Retailers can reduce fraud risk and discourage fraudsters from shopping on your premises.

Reducing Fraud Risk

The starting point therefore, must be accurate Identification and Verification of each client.

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