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Anti-fraud is important. Above all, it is important for AML, as fraudsters go out of their way to launder money, and businesses need to protect not only their finances but the reputation of the platform.
Here are some of the steps to prevent different types of payment fraud, make sure your business is running well and let your clients avoid malicious scams.
Fraud differs by its focus—it can be targeting a customer or company. However, in both of these cases, the company takes the hit. If you are a company and your user gets robbed, it is not only your reputation that gets damaged—you will also have to take responsibility and pay for the inflicted losses.
Here are the most typical fraud cases and how to avoid them.
A user receives a call from an imposter who introduces himself as an internet provider and informs the user of a refund. To receive it, the user has to give over his card details, which he does. Later that evening the user realizes that money was stolen from his account.
What can a company do to prevent fraud:
A user orders a bunch of Christmas decorations off of AliExpress and a week later receives a notification of a big purchase allegedly made by her in China. She, of course, knows nothing about it.
What can a company do to prevent fraud:
A user wants to buy an iPhone 8 for £400 through an online marketplace. The seller asks for a bank transfer instead of the website’s payment channel. The seller ensures Paul it would be quicker and there won’t be any fees to pay. The user paid, the phone hasn’t arrived.
What can a company do to prevent fraud:
A user calls his credit card company to request a chargeback on a TV he says he never ordered. The merchant apologizes without suspecting a scam and transfers the money back. The fraudster gets both, the purchase and the money.
What can a company do to prevent fraud:
To safeguard your company, its budget and reputation, it is better to have multiple security layers by using sophisticated automated tools. Sumsub fights real cases of payment fraud for years, in fintech, gaming, trading and e-commerce.
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