|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.
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
Dec. 7, 2016 07:15 PM EST Reads: 1,771
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
Dec. 7, 2016 07:15 PM EST Reads: 327
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Dec. 7, 2016 07:00 PM EST Reads: 442
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, contrasted how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He showed how the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He also demoed building immutable pipelines in the cloud ...
Dec. 7, 2016 06:00 PM EST Reads: 1,869
Join Impiger for their featured webinar: ‘Cloud Computing: A Roadmap to Modern Software Delivery’ on November 10, 2016, at 12:00 pm CST. Very few companies have not experienced some impact to their IT delivery due to the evolution of cloud computing. This webinar is not about deciding whether you should entertain moving some or all of your IT to the cloud, but rather, a detailed look under the hood to help IT professionals understand how cloud adoption has evolved and what trends will impact th...
Dec. 7, 2016 06:00 PM EST Reads: 2,649
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 05:45 PM EST Reads: 1,098
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
Dec. 7, 2016 05:15 PM EST Reads: 925
"We are a custom software development, engineering firm. We specialize in cloud applications from helping customers that have on-premise applications migrating to the cloud, to helping customers design brand new apps in the cloud. And we specialize in mobile apps," explained Peter Di Stefano, Vice President of Marketing at Impiger Technologies, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 05:15 PM EST Reads: 319
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
Dec. 7, 2016 05:15 PM EST Reads: 252
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Dec. 7, 2016 05:15 PM EST Reads: 1,743
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
Dec. 7, 2016 05:00 PM EST Reads: 1,916
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Dec. 7, 2016 04:30 PM EST Reads: 1,675
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 04:15 PM EST Reads: 783
President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now. In his session at 19th Cloud Expo, Chris Webber, security strateg...
Dec. 7, 2016 04:15 PM EST Reads: 345
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal...
Dec. 7, 2016 04:15 PM EST Reads: 355