Cybercrime , Fraud Management & Cybercrime , Fraud Risk Management

How to Fight Against 'Authorized Payment Fraud'

Two Card Security Experts Describe Effective Strategies
Alastair Sheen (left), independent consultant, and Robert Tharle, former senior manager, future fraud development, TSB Bank

Implementation of 3D Secure 2.0, a protocol designed to be an additional security layer for online credit and debit card transactions, by banks and merchants alike can play a critical role in reducing “authorized payment fraud,” two security experts say (see: Using Artificial Intelligence to Fight Money Laundering).

See Also: Check Kiting In The Digital Age

In an in-depth video discussion, Alastair Sheen, an independent fraud risk management consultant, and Robert Tharle, former senior manager, future fraud development at the U.K.’s TSB Bank, discuss all the steps banks can take to help prevent this type of fraud.

Authorized payment fraud involves manipulating victims into making real-time payments to fraudsters typically by socially engineered attacks involving impersonation.

“Secure customer authentication has to become a reality in all parts of the world,” Sheen says. “For secure online card payments, merchants must adopt the 3D Secure 2.0 approach, which has a greater authentication accuracy.”

Tharle adds: “This is the right time for banks to build new and different models for tackling fraud by using techniques like machine learning and AI."

In this panel interview with Suparna Goswami of Information Security Media Group, the two experts also discuss:

  • Trends in authorized payment fraud;
  • How banks can help crack down on this fraud;
  • The technologies that can play a role in fraud prevention.

Tharle, who was formerly senior manager, future fraud development, at TSB Bank, has 20 years of experience, including anti-fraud roles at Natwest and RBS as well as enterprise fraud management vendor NICE Actimize.

Sheen, an independent fraud risk management consultant, has expertise across digital and card payment channels, including card scheme rules.

About the Author

Suparna Goswami

Suparna Goswami

Associate Editor, ISMG

Goswami has more than 10 years of experience in the field of journalism. She has covered a variety of beats including global macro economy, fintech, startups and other business trends. Before joining ISMG, she contributed for Forbes Asia, where she wrote about the Indian startup ecosystem. She has also worked with UK-based International Finance Magazine and leading Indian newspapers, such as DNA and Times of India.

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