Expert advice on Payment Platform Fraud

2017-03-14 11:10:07 Payments
Payments
By Owen Linderholm, Senior Content Strategist | 2017-03-14 11:10:07
Estimated reading time 1 minute read
Owen Linderholm
By Owen Linderholm, Senior Content Strategist

What’s the single highest risk to a platform business? Higher than losing customers, higher than a too-slow-ramp to LTV? That’s a tough question. But the reality is that there is a single event (or rather rapid sequence of events) that can not only ruin a business financially but also kill its reputation in the process.

[Watch a webinar on payment platform fraud!]

That single event is a scripted fraud attack that can drain your funds or your customers’ funds in a matter of hours or even minutes. Fraud is a constant risk in e-commerce, crowdfunding and any other business platform where transactions take place. And it is a risk that evolves continuously. And when a profitable vulnerability is found by a fraudster they rapidly move to repeat, operationalize and script an attack on that vulnerability to make as much money as they can as fast as possible before the window of opportunity closes.

A Scripted Attack

There are other longer, slower, more painful deaths that a platform can suffer from fraud activity, more like a death by a thousand cuts. Essentially if fraud volume gets too high then your customers suffer and your reputation suffers and soon your platform will be considered untrustworthy.

These are just two of the high risk possibilities that can affect platform businesses that take payments if they pay insufficient attention to fraud or if their payments provider pays too little attention.

[The Rise of Fraud on Payment Platforms from WePay on Vimeo.]

We recently ran a webinar on the topic with a great presentation from our VP of Risk, John Canfield. He talked about the different kinds of fraud that can affect platform businesses and how to think about them and approach managing the different problems that arise. We also had a lively Q&A on the topic. If you want to know more then please go sign up to watch it on demand.

About the author

Owen Linderholm

Owen Linderholm, Senior Content Strategist

Owen Linderholm is Senior Content Strategist at WePay. He has previously held content and editorial roles at Yahoo, Microsoft, IDG and the BBC.

More blog posts by Owen Linderholm

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