Merchants report rise in friendly fraud from mobile payments
Defined as an instance where the customer makes a purchase using a credit card and then petitions their bank for a chargeback instead of a merchant-issued refund. In these situations, merchants are held accountable despite any measures taken to verify the transaction.
With regular credit cards, Ravelin states that merchants generally challenge 37% of chargebacks and achieve a successful outcome 56% of the time. However, the rise of digital wallets like and has significantly muddied the waters.
In fact, the ‘Fraud & Payments Survey 2020’, which used a representative sample of 1,000 fraud and payments professionals, found that 5% of chargeback instances originating from the aforementioned digital wallets resulted in a positive outcome for merchants.
Fraud: On the rise
Although the biometrics currently being employed by Google, Apple and other payment platforms hold significant security value for consumers, they also appear to be skewing bank decision making.
“Thanks to COVID-19 and contactless delivery for products, friendly fraud has been on the rise for the past few months, and Google and Apple Pay’s biometric security features don’t stop friendly fraud. It’s costing merchants a huge wad of cash at a time when profit margins have become wafer thin,” explains Mairtin O’Riada, Co-Founder and CIO at Ravelin.
“The key to fighting this issue is to keep a closer eye on your own payment data. If you can track payment method types, the issuer country, loyalty scheme points and BIN ranges, you can begin to start to challenge chargebacks with more confidence and success.”
Improving digital wallets
The impending ubiquity of digital wallets has, for , become almost an inevitability. From P2P payments and bills to groceries, e-commerce, cryptocurrencies and more, there is seemingly no limit to how far this technology could integrate with our daily lives.
Therefore, it behoves companies and banks to work towards resolutions that overcome a frictional consumer-merchant dynamic.
“I predict that the use of digital wallets will continue to grow steadily in the next decade, and one reason for that relates to bill pay,” commented Michael Kaplan, Chief Revenue Officer and General Manager at.
“Some people already pay for groceries or shop online with their Google or Apple Pay accounts. It’s a bit of a novelty and relatively convenient, but it’s when consumers start paying bills through the digital wallet that they will fully appreciate it for the enormous ease and time savings it gives them.”
Check Point: Securing the future of enterprise IT
Cybersecurity solutions provider Check Point was founded in 1993 with a mission to secure ‘everything,’ and that includes the cloud. Conscious that nothing remains static in the digital world, the company prides itself on an ability to integrate new technology with its solutions. Across almost three decades in operation, Check Point, with its team of over 3,500 experts, has become adept at protecting networks, endpoints, mobile, IoT, and cloud.
“The pandemic has been somewhat of an accelerator in the evolution of cyber risk,” explains Erez Yarkoni, Global VP for Cloud Business. “We had remote workers and cloud adoption a long time beforehand, but now the volume and surface area is far greater.” Formerly a CIO for several big-name telcos before joining Check Point in 2019, Yarkoni considers the cloud to be “part of [his] heritage” and one of modern IT’s most valuable tools.
Check Point has three important ‘product families’, Quantum, CloudGuard, and Harmony, with each one providing another layer of holistic IT protection:
- Quantum: secures enterprise networks from sophisticated cyber attacks
- CloudGuard: acts as a scalable and unified cloud-native security platform for the protection of any cloud
- Harmony: protects remote users and devices from cyber threats that might compromise organisational data
However, more than just providing security, Yarkoni emphasises the need for software to be proactive and minimise the possibility of threats in the first instance. This is something Check Point assuredly delivers, “the industry recognises that preventing, not just detecting, is crucial. Check Point has one platform that gives customers the end-to-end cover they need; they don't have to go anywhere else. That level of threat prevention capability is core to our DNA and across all three product lines.”
In many ways, Check Point’s solutions’ capabilities have actually converged to meet the exact working requirements of contemporary enterprise IT. As more companies embark on their own digital transformation journeys in the wake of COVID-19, the inevitability of unforeseen threats increases, which also makes forming security-based partnerships essential. Healthcare of Ontario Pension Plan (HOOPP) sought out Check Point for this very reason when it was in the process of selecting Microsoft Azure as its cloud provider. “Let's be clear: Azure is a secure cloud, but when you operate in a cloud you need several layers of security and governance to prevent mistakes from becoming risks,” Yarkoni clarifies.
The partnership is a distinctly three-way split, with each bringing its own core expertise and competencies. More than that, Check Point, HOOPP and Microsoft are all invested in deepening their understanding of each other at an engineering and developmental level. “Both of our organisations (Check Point and Microsoft) are customer-obsessed: we look at the problem from the eyes of the customer and ask, ‘Are we creating value?’” That kind of focus is proving to be invaluable in the digital era, when the challenges and threats of tomorrow remain unpredictable. In this climate, only the best protected will survive and Check Point is standing by, ready to help.
“HOOPP is an amazing organisation,” concludes Yarkoni. “For us to be successful with a customer and be selected as a partner is actually a badge of honor. It says, ‘We passed a very intense and in-depth inspection by very smart people,’ and for me that’s the best thing about working with organisations like HOOPP.”