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In this episode of Fraudology, host Karisse Hendrick delves into the pivotal shifts in liability rules for ApplePay on Card-Not-Present transactions, and on the Zelle network. For Zelle, the news about a potential liability shift is designed to protect consumers from scam-induced losses. As financial institutions prepare for an overhaul that positions them to absorb losses from deceptively induced transactions, Karisse examines the potential impacts on fraud prevention and customer safety.

Furthermore, Karisse takes a critical look at the fallout from Binance's regulatory violations; exploring the heavy $4 billion penalty levied against the cryptocurrency exchange for its failure to implement necessary Know Your Customer (KYC) checks and to report suspicious activities. Karisse discusses how Binance's actions facilitated illegal activity including terrorism, ransomware, and child exploitation materials. Highlighting the broader consequences of neglecting robust fraud prevention measures and the essential need for companies to prioritize compliance to safeguard against financial crimes.

Articles mentioned in this episode:

Zelle News:

https://www.nytimes.com/2022/11/28/business/zelle-scams-banks-reimburse.html

Binance News:

https://www.justice.gov/opa/pr/binance-and-ceo-plead-guilty-federal-charges-4b-resolution

https://frankonfraud.com/fraud-trends/greed-and-avarice-binance-never-filed-a-single-sar-ever/

Visa/ApplePay ECI 05 Messaging Confirmation:

E-Commerce Transactions Using Credential-On-File Tokens Provisioned From a Device-Based Token May Be Classified as ECI 05

Regions: US, Canada

15 Dec 2022

Effective 15 April 2023, cardholder-initiated transactions using a credential-on-file token provisioned from a device-based token will be reclassified as electronic commerce indicator (ECI) 05, subject to meeting specified requirements.

Halfway Down This Page:

https://usa.visa.com/support/merchant/library/visa-merchant-business-news-digest.html#:~:text=Effective%2015%20April%202023%2C%20cardholder,subject%20to%20meeting%20specified%20requirements.

Fraudology is hosted by Karisse Hendrick, a fraud fighter with decades of experience advising hundreds of the biggest ecommerce companies in the world on fraud, chargebacks, and other forms of abuse impacting a company's bottom line.

Connect with her on LinkedIn

She brings her experience, expertise, and extensive network of experts to this podcast weekly, on Tuesdays.