Payments platform calls for all parts of the sector to join forces to bring about change
The first part of a new report from inclusive global payments platform, Ecommpay, examines fraud through the lens of systemic human vulnerability and the current misplacement of resources, regulation and tools. Bringing together insights from fraud, compliance and regulation experts, the report provides merchants with tools to help them make vital changes that will help to protect their business from fraud.
The report, ‘Beyond the Black Box: Why human-centric fraud demands ecosystem-wide transformation’, aims to support businesses that rely on the successful operation of e-commerce, including merchants, FinTechs and others active within this space. Interviews with industry experts helped to identify three (very) uncomfortable truths:
- Current fraud prevention creates competitive disadvantage and market distortion
- Fraud prevention technology and regulation are not built to address the human vulnerabilities that have become the primary attack vector
- Regulatory frameworks contain inherent conflicts that cannot be resolved at the institutional level
“Fraud is an increasing threat, with the number of cases and the financial losses growing year-on-year,” commented Willem Wellinghoff, Chief Compliance Officer and UK Chair of Ecommpay. “The challenge is that the methods criminals employ to defraud consumers and businesses continue to evolve, and regulation and technology struggle to maintain pace or get ahead. More needs to be done to bring about real, meaningful change.”
The Ecommpay report identifies that while fraud has shifted from technical exploitation to human manipulation, the regulatory and industry response framework remains anchored in technical and institutional solutions. Having built in-house ground-breaking fraud detection solutions, Ecommpay is helping merchants protect themselves and their customers from fraud, stopping criminals in their tracks.
Ecommpay hopes to stir merchants and FinTechs into action, to join forces with competitors, industry bodies, regulators and government to bring about the change the ecosystem needs.
Willem Wellinghoff continued: “While significant, lasting, global change will depend on some big changes to how the industry works together and is regulated, there are steps e-commerce merchants can take today that will help to protect them and their customers. Discussing fraud prevention with payment providers and taking a detailed look at internal systems is the best place to start, to quickly identify weaknesses and opportunities for improvements. However, this is not a one-off tick-box exercise; effective fraud prevention requires ongoing monitoring and knowledge of the rapidly evolving landscape as well as continual development of internal solutions and processes to meet changing demand.”
Key fraud protection steps for e-commerce merchants:
- Discuss fraud prevention with your payment provider
- Audit your own systems
- Educate your customers on the risk of fraud to they can protect themselves
- Train staff to recognise attempted fraud
- Stay up to date with the changing fraud landscape
- Monitor for unauthorised use of your brand and report fraudulent websites
- Report suspected fraudulent transactions to your PSPs
