Kount Blog | fraud
Blog Against Fraud

6 Visible and Hidden Costs of eGift Card Fraud

Posted on Thursday, September 14, 2017

eGift cards are easy to buy and easy to give, which explains their skyrocketing popularity. In fact, digital gift cards are the fastest growing segment in the $127 billion gift card industry, with $14 billion in sales projected for this year. Perhaps that’s also why 8 out of 10 of the top Internet retailers offer them.

Unfortunately, these same attributes make eGift cards and stored value cards prime targets for card-not-present (CNP) fraud.

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Topics: fraud, egift card

5 Tools That Every Car Thief Swears By

Posted on Wednesday, August 23, 2017

In 2015, auto thieves boosted a car about every 45 seconds, according to statistics released by the FBI. In all, more than 700,000 vehicles went missing totaling $4.9 billion in losses. 

The good news is that auto theft has actually been dropping year over year, largely due to advances in onboard security technology. The bad news is that fraud-based online theft in the automotive and powersports industry is becoming easier by the day.

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Topics: fraud, automotive, car thief

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

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