Protection tool

PayPal introduces new fraud protection tool

Pay Pal Launches New Fraud Protection Tool to Help Merchants Fight the Growing Problem of Online Fraud.

Fraud Protection Advanced is a risk management solution developed specifically to help protect midsize businesses and businesses from escalating digital threats and scams, PayPal announced Monday (April 12th).

“This enhanced tool builds on knowledge from our deep industry partnerships and over 20 years of data leveraged by our two-way network of merchants and consumers across 15 billion transactions per year. Thanks to our sophisticated learning capabilities automatic and analytical, we are now able to take this information and deliver it to merchants to help them identify, investigate, resolve and mitigate fraud, ”said Rahul pangam, vice president of risk strategy at PayPal.

The COVID-19 pandemic has fueled a rapid change in people’s shopping behavior, with e-commerce in the United States reaching a record penetration rate of 21.3% last year, up more than 5% compared to 2019, according to Digital Commerce360. The new revenue potential has been good for merchants, but it has also opened up opportunities for scammers, leading to an escalation in digital theft.

PayPal’s new study – “The Real Cost of Online Fraud” – conducted in collaboration with the Ponemon Institute, shows that the growing sophistication of digital thieves has made it difficult for businesses to keep pace. Other issues that keep merchants from stopping online fraud are the lack of advanced tools or the lack of best practice policies in place.

The new research aims to provide a better understanding of the current fraud landscape and the various obstacles businesses face. More than 600 analysts and senior executives from many industries participated in the survey, including retail, travel, hospitality and entertainment. On average, these businesses report losing $ 4.5 million each year to digital fraud. Even though the financial loss was significant, only 51% said their companies were working to fight it.

Participants also said the pandemic played a big role in their inability to stop fraud. Before COVID-19, 45% of those surveyed rated their effectiveness in reducing online fraud as high or very high. Today, only 34% rate their effectiveness as high or very high.

The Federal Reserve recently published a suggested definition for synthetic identity fraud as a way to help combat the escalating problem of digital fraud.

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