Top takeaways from MRC Barcelona 2023
MRC Barcelona 2023 was an insightful and action-packed conference for payment and fraud prevention professionals to discuss timely trends and share their ideas. The conference was buzzing with conversations about AI, first party misuse, and the Genesis Market takedown.
Among the leading insights shared, Brittany Allen, Trust and Safety Architect at Sift, co-presented a Fraud 201 intensive course and a session titled “Marketplace Fraud: A Twofold Threat,” which provided real-world examples of emerging fraud trends and advice for preventing marketplace fraud.
Read on for some of the lessons learned from MRC Barcelona 2023.
Preventing two-sided marketplace fraud
During their marketplace fraud session, Sift Trust and Safety Architect Brittany Allen and Rodrigo Palacios Revuelta, Fraud Manager at Hotelbeds, discussed how and why fraudsters are flocking toward marketplace fraud. Marketplaces are especially attractive to fraudsters because two-sided platforms increase the opportunity for fraud. The complexity of these platforms can also make it more difficult to detect fraud.
Some common examples of marketplace fraud include using stolen credit card information or account takeover attacks (ATO) to get free products or services, publishing fake listings and fake reviews, and money laundering. These fraudsters are using one-time password (OTP) bots, fraud-as-a-service (FaaS) bookings and reviews, and know your customer (KYC) bypass methods to circumvent common fraud prevention tools.
For marketplaces, investing in the right fraud tools can provide indispensable insight into attack patterns, which can help shine light on fraud techniques that might otherwise go unnoticed. By leveraging these tools throughout the entire user journey, companies can more effectively fight fraud. This means uniting teams across departments that might otherwise operate in silos to better track fraud trends and share relevant data.
Fraud prevention at scale
In one session, two major European delivery services discussed some of the challenges associated with refund fraud and account takeover. These companies noted that the consumerization of fraud has emboldened almost everyone to commit some level of refund abuse.
The accessibility of the deep and dark web is also playing a part in fraud rates. On a positive note, one company saw a correlation between the recent Genesis Market takedown and a decrease in account takeovers on their platform. But more regulation is needed to prevent similar marketplaces from making it easy for anyone to commit fraud online.
These delivery services are also faced with the challenge of wanting to minimize customer friction, but manual review not being able to keep pace with the rate of fraud. Consequently, they are looking for ways to sustain profitability, especially when their business is not expanding. By leveraging machine learning, these types of companies can automate their fraud decisioning and drastically reduce manual review time.
PSD2 and Visa CE 3.0
The Second Payments Services Directive (PSD2) has been a major topic of discussion at recent conferences, including MRC Barcelona and MPE Berlin 2023. It would appear that PSD2 has achieved its goal of creating more secure online payments across Europe, as it reduced e-commerce fraud by 50%. However, merchants have still been struggling with some challenges, such as the friction associated with Strong Customer Authentication (SCA). Non-3DS transactions have twice as much CNP fraud as 3DS authenticated transactions, but authentication is 2.5 times more likely to fail on an app than on a browser.
The recent Visa Compelling Evidence 3.0 update was also top of mind for businesses dealing with first-party fraud. The new Visa update offers a solution for merchants to challenge first-party fraud by maintaining a transaction history that captures user account details, IP address, shipping address, and device ID.
Effective online fraud prevention
One of the most universal topics at MRC Barcelona was how fraud threats are rapidly expanding and becoming more challenging to keep up with. In order to beat fraudsters at their own game, it’ll take an expansive data network and connected risk prevention capabilities to get out ahead of fraud. By combining data from all industries around the world, each individual business can benefit from those shared insights.
Regardless of whether an online business is trying to prevent marketplace fraud, ATO, CNP fraud, or first-party fraud (or any combination of the above), they need high-quality data to inform their insights. Likewise, as companies scale up, they need machine learning automation to help keep pace with rising fraud rates.
Learn more about how Sift’s Digital Trust & Safety Platform delivers these key capabilities.
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*** This is a Security Bloggers Network syndicated blog from Sift Blog authored by Sift Trust and Safety Team. Read the original post at: https://blog.sift.com/top-takeaways-from-mrc-barcelona-2023/?utm_source=rss&utm_medium=rss&utm_campaign=top-takeaways-from-mrc-barcelona-2023
