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Blog Against Fraud

In The Kitchen With Fraud

Posted on Thursday, April 6, 2017

By: Josh Johnston, Data Scientist at Kount

When I want to spend all day watching something cook, I usually smoke a pork shoulder or nice rack of ribs. I don’t have the patience to watch bread rise. I do make a ridiculous falafel with tzatziki, though, which demands a quality flatbread. 

My flatbread recipe uses 3 cups of flour. There are a few billion grains of flour in those three cups. That’s how many transactions there are in the database we use to train our classifiers at Kount. My recipe also uses 1 tsp of salt. The mixture is 0.7% salt by volume. That’s about the chargeback rate many of our customers experience before they come to Kount. If we pretend the grains are the same size, we can imagine the grains of flour are good transactions and the grains of salt are bad ones.

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Topics: artificial intelligence, fraud, flour, salt

Of Fraud and Fools

Posted on Friday, March 31, 2017

April Fools’ Day: depending on where you fall on the gullibility scale, it’s either a harmless day of light pranks or a chance for the jerks among us to be, well, jerks.

From a young age we’re taught to watch our backs on April Fools’ Day—make sure there’s no Saran Wrap on the toilet, be extra cautious when accepting “treats” from “friends,” and, for the love of all that is good, keep one eye trained on your shoelaces!

And then there’s fraud: a more consequential kind of foolery where there’s little teaching or training. As adults, most of us are aware of its existence, but are less well-versed in the clues and the consequences. And unlike April Fools’ Day, it’s not enough to keep your guard up for just one day to prevent fraud. As Nobel Laureate economist Robert Shiller points out, the world will never be rid of “fraud and fools.”

In honor of April Fools’ Day this year, we at Kount take a look at some of the most infamous cases of fraud and foolery.

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Topics: fraudster, fraud, april fools

This is Not The Wall – Merchants Can’t Take a Chance on Fraud

Posted on Wednesday, March 1, 2017

Wild, unpredictable and fast moving – sounds like the makings for good TV, right? It’s also generally the way fraud happens. It’s unpredictable and non-linear… much like the new game show, The Wall. If you’ve not caught this new updated version of everyone’s old-school favorite, Plinko, this popular game show is actually a lot like
fraud. Merchants are vulnerable to fraud, but unlike the game show, merchants can’t afford to play this game without severe losses. And, there is no contract to sign that guarantees you winnings – the stakes are much higher than that. According to the U.S. Justice Department, credit fraud now costs businesses $5.5 billion a year, with the bulk of that coming from online transactions.

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Topics: mobile device, fraud, the wall

Here’s to 2016, Going on 2017

Posted on Wednesday, January 4, 2017

Post-truth. Xenophobia. Surreal. Bigly. Those are just a few of the words that have summed up 2016. Regardless of your favorite word to describe 2016, it has been quite a year filled with a number of major events that will influence years to come. And just when you think 2016 was done with surprises, it drops another.

While we had so many to choose from, we highlighted the top five events that shook the year so hard, the reverberations are set to impact the financial tech industry throughout 2017:

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Topics: data protection, fraud, 2017

Fraud in the Headlines

Posted on Tuesday, December 13, 2016

It seems that nary a week goes by without headlines illuminating a major breach at a retailer, government agency, or other organization. From credit card theft to unlawful access to personal information, fraud is all around us.

While Kount’s focus is providing crucial technology for online merchants, payment processors, and other card-not-present businesses to decrease fraud, we are well aware that fraud extends far beyond payments. Across the world, people and organizations are targets of fraud every day. Let’s take a look some of the recent news around fraud, and what they have in common.

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Topics: payments, fraud

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