GumBallPay payment gateway: fight against payment fraud

The GumBallPay payment gateway provides a payment solution for businesses in the iGaming industry, providing customers with GumBallPay’s extensive expertise and capability to make their goals a reality. This article explores the different types of payment fraud, including fraudulent chargebacks and their impact on businesses.

With total transaction value expected to reach $8.5 trillion by the end of 2022, digital payments are big business today. Gone are the days when electronic payments were the sole preserve of large corporations, with peer-to-peer (P2P) payment apps such as Venmo, Zelle, and Cash App becoming more commonplace on smartphone home screens. Although some people continue to rely on paper checks, primarily members of older generations for whom the use of e-commerce and smartphones is less prevalent, overall digital payments have taken the world by storm.

Just as large numbers of consumers have embraced digital payments, executives of fraudsters have also been drawn into the arena, seeking to embezzle payments or exploit the personal information attached to them. Nearly half of all consumers in the United States said they had been the target of payment fraud in the past, with cybercriminals deploying an array of different techniques to steal money or data. Consumers expect businesses to protect them from these fraudsters, and organizations use a variety of defenses to deflect these attacks.

Common types of payment fraud include:

  • Check Fraud: This often comes in the form of stolen or altered checks, with bad actors intercepting checks in the mail, changing the amounts and cashing them. Other tactics include check washing, where the bad actor steals the check, uses household cleaners to erase the payee’s name, then adds their own name and cashes the check.
  • Account takeovers: One of the most prevalent threats facing app users today, account takeovers involve fraudsters taking over accounts and dumping stored account values ​​or stealing personal data. Criminals use a variety of tactics to gain control of accounts, including brute force botnet attacks and phishing.
  • Identity theft: Identity theft/fraud can take various forms, such as an insider threat, when a disgruntled company employee steals payment details or personal information. Alternatively, identity theft can result from a fraudster digging through a company’s trash or a data breach.
  • Merchant Identity Fraud: Similar to consumer spoofing, in merchant spoofing, criminals create a fake merchant account after illegally obtaining identity data from a business. The fraudster then uses this fraudulent company to charge the customer’s credit cards before closing the account and walking away with the money, leaving the real company to deal with a slew of fraud reports, customer complaints and chargebacks.

Chargebacks are extremely detrimental to merchants, resulting in lost cost of goods in addition to marketing costs, fulfillment costs, and processing fees, which combined typically amount to around two-thirds of the retail price of the item sold.

In addition to chargebacks resulting from merchant impersonation, another big problem for merchants is legitimate customers dishonestly raising dispute issues with their banks. Take for example an iGaming customer who buys refills or tops up their account, then later changes their mind and contacts their issuing bank claiming that they did not authorize the transaction.

Disputing a chargeback is a painful process for any merchant, but it is possible. However, the merchant must assess whether it is worth investing the time and resources necessary to dispute a false chargeback request, taking into account the amount of the transaction, the availability of evidence for the merchant and its probability. to win.

Founded in 2019, GumBallPay supports e-commerce sites and high-risk industries, providing a payment gateway solution with a comprehensive fraud protection suite, increasing security and protecting the businesses it serves. serves against criminal activities.

Comments are closed.