|By Eran Feinstein||
|April 28, 2014 03:04 PM EDT||
Online credit card payment fraud is an unfortunate facet of online commerce - and one that is likely permanent. For every safeguard put in place, there is someone willing to find a way to get around it. While the vast majority of online transactions are uneventful, the threat of fraud is always present.
There is no way to be completely safe from credit card fraud. As was made evident in the infamous Target security breach in the United States, where the information of thousands of credit card holders was compromised, and the recent massive fraud case in India, in which one man was found to have stolen money from 4,500 credit cards, fraud takes many forms and can happen in unexpected ways.
So how does payment fraud affect all the players involved? Who are the real winners, and the real losers?
Merchant credit card fraud losses occur mainly on transactions where the card is not presented, such as those done online or in call centers. In 2012, merchants shouldered 37 percent of the burden of credit card losses. Merchants can be especially vulnerable to credit card fraud. If someone purchases merchandise fraudulently, they must often pay back the money to the consumer, and suffer the loss of their merchandise. However, this loss isn't the only way in which fraud can affect a merchant's business.
If merchants fail to act promptly when credit card fraud occurs, or try to save money by cutting corners on fraud prevention technology, they can earn a reputation among their clients as being indifferent at best and disreputable at worst. This can cause distrust and a loss of business.
The credit card company
Credit card companies have safety practices in place to protect consumers, but sometimes they fail. Credit card companies take the lion's share of responsibility for credit card fraud. In 2012, they took on 63% of fraudulent losses. While insurance does compensate for some of the loss, credit card companies are still out a significant amount of time and expense, including the cost of maintaining current fraud prevention measures.
In the United States, there are legal protections for consumers that prevent them from being held liable for fraudulent charges, so buyers are not usually directly affected by credit card fraud. However, all consumers are indirectly affected by credit card fraud, as the credit card companies, who suffer huge losses every year, pass those losses on to consumers in the form of higher interest rates and fees.
If an astute buyer detects credit card fraud, the credit card company will decide whether the cost of investigating the fraud is more than simply compensating the buyer and sending them a new card. Large fraudulent transactions prompt credit card companies to do investigations, which typically involve the police. The police can use detective work, surveillance, and other methods to track down perpetrators. Contrary to popular opinion, the thieves do leave a trail, and they don't always get away with it. Credit card fraud is a felony, and perpetrators can look forward to jail time, plus a permanent criminal record.
What to do to protect yourself or your business
While the prevalence of credit card fraud makes it an unescapable reality for the time being, there are ways buyers and merchants can protect themselves.
Consumers should memorize pin numbers and destroy pin number letters. They should monitor their credit cards continuously for unauthorized charges - not just when they get their statement. When shopping online, buyers should check to ensure that site security measures are in place before entering any sensitive information.
Merchants can also take care to verify the signature and identity of customers before honoring any credit card transactions. They can ask customers for the card verification value number on the back of the customer's credit card, which will at least show that he or she has it in their possession. They can also place a hold on shipments of foreign orders in order to buy time to verify card information and cancel the order if need be.
Finally, and perhaps most helpfully, merchants can use real time credit card processing, which will alert then immediately if a card is lost or stolen, so that they can void the transaction. Better merchant protection is achieved via the use of PCI DSS compliant processing services and platforms; merchants can help ensure they have better protection by inquiring as to how their payment-processing provider manages security and prevents fraud.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
May. 2, 2016 11:00 PM EDT Reads: 977
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
May. 2, 2016 08:30 PM EDT Reads: 687
If there is anything we have learned by now, is that every business paves their own unique path for releasing software- every pipeline, implementation and practices are a bit different, and DevOps comes in all shapes and sizes. Software delivery practices are often comprised of set of several complementing (or even competing) methodologies – such as leveraging Agile, DevOps and even a mix of ITIL, to create the combination that’s most suitable for your organization and that maximize your busines...
May. 2, 2016 07:45 PM EDT Reads: 1,877
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
May. 2, 2016 07:00 PM EDT Reads: 1,044
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
May. 2, 2016 06:30 PM EDT Reads: 1,294
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
May. 2, 2016 06:00 PM EDT Reads: 709
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
May. 2, 2016 05:30 PM EDT Reads: 1,560
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
May. 2, 2016 05:15 PM EDT Reads: 984
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
May. 2, 2016 05:00 PM EDT Reads: 1,093
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
May. 2, 2016 04:00 PM EDT Reads: 901
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
May. 2, 2016 03:45 PM EDT Reads: 1,341
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
May. 2, 2016 03:30 PM EDT Reads: 1,066
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
May. 2, 2016 03:00 PM EDT Reads: 355
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
May. 2, 2016 02:45 PM EDT Reads: 1,085