Fraud & Security

A controversial form of automated debit called the remotely created check (RCC) has figured prominently in the demise of a small bank that processed payments for fraudulent merchants and their third-party processors. The U.S. Attorney’s office in Philadelphia announced this week that First Bank of Delaware agreed to a settlement …

For years, the payments industry has hoped to see improvement in card-data security among small merchants in the U.S. But, according to a survey released last week, it’s not happening. Indeed, in some important measures, there has been backsliding on security among the nation’s smallest retailers. A little more than …

Calling it a “sophisticated criminal effort,” Barnes & Noble Inc. on Wednesday reported tampering occurred on PIN pads at 63 of its stores in nine states. The company on Sept. 14 disconnected every PIN pad in all of its nearly 700 stores but indicated that in addition to personal identification …

MasterCard is getting close to announcing an EMV-related liability shift for online and other card-not-present transactions, a network executive said on Monday. “MasterCard will have a card-not-present liability shift,” said Melanie Gluck, vice president of emerging payments at the country’s second-largest payments network. “We haven’t announced it yet, it’s under …

Cardholders in Mexico, not the United States, report the highest incidents of card fraud, according to a new report from Boston-based Aite Group LLC and Elkhorn, Neb-based ACI Payment Systems. Of the credit, debit, and prepaid cardholders surveyed in Mexico, where EMV cards are rolling out, 44% reported an incident …

The extent of government scrutiny of the acquiring business came into sharp relief on Wednesday as a federal official told an audience of top-level executives with processors and independent sales organizations that online transaction fraud is too high and that the executives must do more to bring it down. “There …

Global Payments Inc. still expects it could spend about $120 million as a result of the data breach it reported in early March, but new information from the company gives a glimpse of just where that money is going. The big merchant processor, however, didn’t give any new details in …

With a major chip card standard bearing down on U.S. merchants, acquirers, and issuers, small merchants in particular could face tens if not hundreds of millions of dollars in annual fraud losses they are currently protected from, a processor executive argues. Patty Walters, senior vice president for merchant products and …

Most owners of legitimate sites that have been compromised to support phishing attacks have no idea their site has been violated until some third party tells them, according to a recent survey. But the cluelessness doesn’t end there. Nearly half of owners of compromised sites don’t know how the attack …

Even though merchants accepting mobile payments are in the minority and mobile-payment volume is low, losses from fraud incidents for those merchants are higher than for non-mobile-accepting merchants, according to the fourth annual “LexisNexis True Cost of Fraud” study sponsored by content provider LexisNexis Risk Solutions and conducted by Javelin …