Wednesday, October 29, 2008

E-Commerce Transaction Risks That HomeATM Solves

E-Commerce Payment Transaction Risks Solved By HomeATM's Innovative ePayment Solution

Most eCommerce credit/debit card transaction risks fall into the following categories:

. Fraud usually occurs for one of the following reasons:
  • A criminal uses a stolen card or account number to fraudulently purchase products or services.
  • A family member uses a card to purchase products or services without authorization.
  • A customer falsely claims that he or she did not receive a shipment.
  • Criminals hack into an eCommerce merchant's payment processing system and issue credits to their card accounts. 

Virtual Account Information Theft: Card account information can be stolen in the virtual domain in a number of ways but most typically:
  • Hackers capture card account information during transmission between the merchant and its acquiring bank.

  • Hackers gain access to merchant services provider's payment processing system and steal customers' account information.

Physical Account Information Theft. Card account information can be stolen from physical sites as well:

  • Criminals gain access to and steal cardholder information from a merchant services provider's site and use it for fraudulent transactions.

  • A merchant or a merchant services provider's employee steals cardholder information and uses it for fraudulent transactions.

  • Cardholder information is stolen from trash bins at merchants' or merchant services providers' locations containing unshredded account information.

Customer Disputes and Chargebacks
. Customer disputes and chargebacks are among the biggest risk factors for eCommerce merchants.
        •   Products or services are not as described on the website.
        •   A customer is billed before the product is shipped or the service provided.
        •   There is a disagreement or confusion between the merchant and the cardholder regarding a return or a refund.
        •   A customer is billed twice for the same order or is billed an incorrect amount.
        •   A customer does not recognize the merchant's name on his or her credit card statement.
        •   Products or services are billed without customer approval.

        Fraudulent transactions involving unauthorized use occur when stolen cards or account information are used to purchase products and services. The cards and account numbers are legitimate but their use is not. Typically, fraud in card-not-present environment involves purchasing high-priced items that are easily resold (e.g. electronics, jewelry, etc.).
        Reblog this post [with Zemanta] Launches Today Provides Answers to Debit Card Users

        HOUSTON - (Business Wire), a new Web site that provides timely and accurate information about using debit cards, launched today, offering consumers practical details about debit’s role as a convenient payment method and valuable financial planning tool. The site addresses myths and misconceptions surrounding debit cards by offering fact-based information consumers need to know when using debit, as well as advice on making debit part of their personal money management strategy.

        The site (, sponsored by the PULSE® ATM/debit network, provides recommendations to help protect consumers’ personal finances when using debit cards, including tips for fraud and identity theft prevention.

        “The goal of this site is to raise awareness about debit card use and present consumers with reliable and balanced information about using debit for everyday purchases and as a means of managing their personal finances,” said Cindy Ballard, PULSE executive vice president. “ talks to consumers in easy-to-understand terms. The site gets to the heart of how debit cards are one of the valuable tools in a consumer’s financial planning portfolio.” also addresses issues of concern to debit cardholders, such as the risk of falling victim to card fraud.

        “Debit card networks, financial institutions that issue debit cards, ATM owners and merchants that accept cards at their points of sale are constantly making improvements to ensure both the security of card usage and the ability to readily and efficiently rectify any issues that arise,” said Bruce Cundiff, director of payments research and consulting with Javelin Strategy & Research and author of’s initial expert commentary article.

        “Despite reports to the contrary, fraud rates for debit cards remain relatively low,” Cundiff added.

        In the coming months, the site will feature articles from renowned financial planning experts, offering budgeting advice and personal finance recommendations.  “With today’s economy, most Americans are wondering how to start saving,” said Judy Lawrence, personal finance expert and author of The Money Kit and other money management works. “By contributing to this site, I hope to help people realize that saving can be very manageable, once you commit to starting the process and then learn how. Debit cards can be part of this saving process if consumers know how to make the most of their unique features.”

        Current site content includes a host of useful information, such as:
        • A video about the differences between PIN- and signature-authorized transactions
        • How to protect your personal identification number (PIN) from fraud
        • Understanding debit card liability
        • The benefits of debit cards as a financial planning tool will be updated regularly to include new expert articles, as well as additional videos about the importance of using debit cards wisely.

        About PULSE

        PULSE is one of the nation’s leading ATM/debit networks, currently serving more than 4,500 banks, credit unions and savings institutions across the country. PULSE is owned by Discover Financial Services (NYSE: DFS). The network links cardholders with more than 265,000 ATMs, as well as POS terminals at retail locations nationwide. The company is also a valued resource for industry research related to electronic payments and is committed to providing its participants with education on evolving products, services and trends in the payments industry. For more information, visit

        Anne Rhodes, 832-214-0234
        Rebekah Morgan, 972-341-2509

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        Identity Theft Now Fastest Growing Crime in U.S.

        Consumers Show Increased Concern about Identity Theft

        62% of Consumers Surveyed by IdentityTruth Said They are More Concerned about Identity Theft in Today’s Economic Climate

        IdentityTruth, the leading provider of a new breed of services to help consumers safeguard their privacy and identity, today announced results of a survey that addressed consumer concerns about identity theft. Conducted in mid-October, the survey shows that a majority of consumers are more concerned today than a few months ago about protecting their identity. These are not times to skimp on consumer security and digital safety. During economic downturns, historically there is a noticeable increase of fraudulent activities.

        62% of IdentityTruth subscribers say they are more concerned now about employees of banks and businesses stealing their identities as a result of the banking crisis. The majority of those surveyed believe their personal data is sold to the new bank when one bank buys another. Only 33% state they are concerned about what happens with their private information when their bank is acquired. The implication that can be garnered from the data is that many consumers perceive that identity theft occurs on an individual rather than institutional level. The risk is real and identity and privacy can be compromised at all levels.

        Identity theft is the fastest-growing crime in the U.S., with millions of people being impacted each year by this form of fraud. However, many consumers are still under-informed about the issues that impact privacy and identity in today’s data rich world. The survey also shows that approximately 40% of consumers remain apathetic about the risk presented by the proliferation of personal data. This puts them at greater risk, as economic downturns provide an ideal time for an identity thief to strike. Confusion and anxiety make consumers prime targets for fraud scams and the lure of accessing funds illegally will only continue to grow as the economy flounders.

        With the failures of Wachovia and Washington Mutual, many consumers are unsure of where their personal banking information is stored and are not sure who to trust with data. Consumer’s information is being shipped around from one organization to another and consumers are anxious about credit and banking. Ongoing mergers create further murkiness in the banking world. Consumers are wondering who owns the data and is it safe as well as who they should speak to about their money.

        “The risk is real when it comes to identity theft,” said Steven Domenikos, CEO and founder of IdentityTruth. “Now is not the time for consumers to skimp on security when it comes to protecting their personal information. Consumers should be more proactive in gaining understanding about what is happening to their personal information from bank account numbers, social security numbers, etc.”

        “I chose to sign up for IdentityTruth's premium service because it's the only identity theft solution that protects my entire identity from the earliest possible moment,” said Erin B., an IdentityTruth subscriber. “IdentityTruth provides me with the service and support I need to keep my identity safe. They not only watch my credit report, but their unique technology analyzes information from many different online and offline sources. For example, they continuously look at public records and watch Internet chat rooms--so I am alerted to suspicious activity before it's too late. I feel safe knowing IdentityTruth is looking out for me."

        IdentityTruth’s unique Faster than Fraud™ technology combines data from many different sources--going beyond simple credit-based protections. The service monitors the Internet for suspicious activities that might indicate identity fraud, notifies members of company breaches where sensitive personal data such as Social Security numbers and dates of birth were lost, offers Social Security verification, fraud prediction, and much more. Armed with precise, actionable information these consumers can proactively reduce their risk of identity fraud.

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