Kount Blog
Blog Against Fraud

2 Minutes on Fraud: Episode 1 - "Zero Chargebacks?"

Posted on Tuesday, November 1, 2016

Chargebacks are expensive. They cost your business time and money. But the goal of zero chargebacks might not be the best strategy either. Merchants trying to achieve zero chargebacks are often leaving good sales and frustrated customers in their wake. Don’t use a chainsaw, when you should use a scalpel. For each merchant, there is an optimal chargeback rate, which allows for maximizing sales while mitigating risk. Don Bush, Vice President of Marketing, Kount, explains chargebacks and examples of optimal rates.

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Topics: chargebacks, 2 minutes on fraud

Why 100% Chargeback Guarantees Can Actually Cost You Money

Posted on Friday, October 28, 2016

Like most things that sound too good to be true, 100% Chargeback Guarantees are not quite what they‘re cracked up to be.

They don’t actually prevent 100% of chargebacks and fraud. Rather, they act as a type of insurance policy that reimburses you when you do get hit with chargebacks and fraud.

The chargebacks and fraudulent transactions still occur. The only difference is that you pay per-transaction “insurance premiums” (in effect) to offset those losses. And just like any insurance policy, your situation determines whether or not these make good financial sense.

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Topics: chargebacks, fraud, chargeback guarantee

Betrayal at the Checkout

Posted on Thursday, October 20, 2016

How would you feel if your best friend had known for two years that your significant other was cheating on you and never told you? Mad? Angry? Betrayed? Vulnerable? In today’s world, this feeling can be akin to a company knowing that its users’ most personal data, like credit card information or passwords, have been readily available to hackers on the web for not just hours or days, but YEARS – and you’re just finding out about it now.

The Cheater

Unfortunately, that’s exactly what happened with Yahoo. In 2014, hackers breached the personal data of over 500 million users who are just now learning the extent of the company’s “infidelity.” What’s more, recent data breaches combined with increasing use of new mobile payment solutions make it easier for thieves to obtain and use stolen data, leaving merchants and consumers extremely vulnerable to fraud. 

But Yahoo isn’t the only “bad boy” of the bunch; hacks at LinkedIn and Myspace were recently announced to the public years after they actually occurred. When it comes to announcing a breach to the public, does “once a cheater, always a cheater” ring true?

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Topics: data breach, personal data

Kount: Agent of Shield

Posted on Monday, October 17, 2016

Throughout history, the shield has been an iconic method of defense. From the Ancient Roman tortoise formations to the walls of the Hoover Dam, we’ve come up with a hundred or more ways to keep things out over time.

Unfortunately, this approach doesn’t work so well in the online world. Even firewalls can fall short when it comes to shielding your business from fraudsters. Perfect timing, then, for our announcement this week that Kount is now fully compliant with the EU-US Privacy Shield Framework for protection of EU-US data transfers.

The Shield is a replacement to the now-discarded Safe Harbour Privacy Principles, declared invalid in October 2015 by the European Court of Justice. As whistle-blower Edward Snowden and Austrian privacy campaigner Max Schrems revealed, it turns out that the harbour of EU data to the US under these principles was neither safe nor private!

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Topics: protection, privacy shield, data

Take Five for Frauding

Posted on Friday, September 23, 2016

How FFA UK’s new campaign helps consumers and companies alike to combat the war on fraud

Kount is pretty handy when it comes to protecting the payments industry from fraud, and, with our recent addition of two new patents for enhanced online user verification, we’re bolstering our defenses all the time.   

That being said, the war on fraud is escalating every day. Fraud in the UK payments industry has leapt 53% in a year, a financial scam occurred once every 15 seconds between 1 January and 30 June 2016, and cybercriminals are working in more sophisticated and collaborative ways than ever before.

It’s never been more crucial for the good guys to band together.

Perfect timing then for the launch of Financial Fraud Action (FFA) UK’s ‘Take Five’ campaign this week, an educational initiative to help the UK population protect themselves from preventable financial fraud.

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Topics: take five, financial fraud

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