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And like other companies in the fraud prevention space, "This is a new criminal angle our members are not
Trustwave can customize monitoring services to meet sensitized to, so we found they appreciated knowing that
ISOs' merchant-specific requirements. we were monitoring redemption activity for them and
holding all suspicious redemptions for confirmation of
Institutional targets responsive legitimacy before allowing them to be fulfilled," said Liz
In an age when heightened government and institutional Fee, Vice President of Payments and Deposits at Citadel
oversight seeks to cut off financial sources to potential Federal Credit Union in Exton, Pa.
terrorists, any entity that processes payments Collaboration plays central role
internationally, or even locally, must remain vigilant
about monitoring data transiting networks. Implementing Two companies long recognized for advancing the science
detailed reporting standards helps ensure that legitimate of fraud detection and prevention are Brigherion Inc.,
legal business practices are being enforced. which counts as clients Mastercard, banks, governments
and other global entities; and CardinalCommerce, which
Flywire, whose platform supports international consumer serves a number of major retailers and now operates as
payments, has seen an increase in fraud attempts directed a wholly owned subsidiary of Visa Inc. following its
at individuals who transact overseas for such things acquisition by Visa in December 2016.
as healthcare and higher education. Both are lucrative
markets. The education market processes $53 billion While each delivers unique technologies to combat fraud,
annually for international students, and medical care both agree a collaborative approach to cybersecurity is
takes in about $40 billion per year from patients seeking most effective. CardinalCommerce developed its core
care outside of countries in which they reside. technologies to support authenticated payments, secure
transactions and alternative payment brands. Brighterion
"Some scammers represent themselves as government evolved artificial intelligence to support real-time
agencies and demand payment of an 'international student applications in payments, healthcare, homeland security
tariff,'" said Peter Butterfield, General Counsel and Chief and other security-sensitive markets.
Compliance Officer at Flywire. "Others claim to be agents
endorsed by schools and offer discounts for processing "The big danger in fraud today is acting in a silo and not
the tuition payment through their firm." sharing and leveraging enhanced enriched data across the
network, so together the card issuer and the merchant can
After obtaining student login information, imposter agents make the best decision not only to catch fraud and stop
proceed to make tuition payments using stolen credit card fraud, but also to allow good orders to get through and
credentials, which are then rejected and reversed, while not stop good people from buying and transacting," said
the discounted tuition amount paid to fraudsters, typically Tim Sherwin, co-founder and Chief Executive Officer at
by wire, vanishes without a trace. Phishing scams offering CardinalCommerce.
fake tuition grants represent another growing problem, he
noted. Not only can lack of sharing be detrimental to cash flow,
but it can also endanger brand reputation. "We have an
"While there are a number of new technology approaches interface sitting on the merchant side, and we collect
to fraud, we are encouraging our clients to also take a data from the merchant and get it over to the card issuer
manual commonsense approach by designating preferred in real time so that the card issuer can authenticate the
payment channels for their students that they know transaction, or say, no, this is fraud, and provide that
are secure and convenient," Butterfield said. He urges response or knowledge back to the merchant before you've
institutions to communicate with payors and to work even run it through the authorization network," Sherwin
closely with processors to develop risk profiles and said.
behavior patterns to detect fraud early on.
Because this type of risk-based authentication performs
Another emergent trend entails online money laundering silently in the background, it delivers seamless commerce
involving fraudsters that steal and resell loyalty rewards experiences in often-complex environments. "You need
points or goods. To address this issue, credit union to have the infrastructure monitoring in place and the
services provider PSCU recently introduced technology network of merchants driving the scale and the volume
that applies advanced authentication processes to validate through so you can stay on top of this very chaotic and
all parties engaged in the redemption loop as an extra very distributed payments system where there are tens
layer of protection for its CURewards program credit of thousands of issuers with hundreds of BINs running
union members. authentication in all different ways," Sherwin stated.

To further complicate matters, U.S. merchants have an
extensive catalog of online shopping cart options, which

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