As new high-risk merchants establish a presence in ecommerce, weak points in the payments system are exposed

Last week, Dan Frechtling, president at Verisk Financial G2 discussed the growing presence of three high-risk ecommerce markets during a panel discussion at the annual ETA TRANSACT conference in Las Vegas, Nevada. Adult-oriented websites, online pharmacies, and virtual casinos have quickly established residency within the global payments system. As a result, additional merchant fraud and compliance issues are surfacing.

“Fraud is sort of subject to laws like the law of conservation of mass. Fraud and risk never really go away, it just gets moved from one part of the payments space to another,” said Frechtling during his opening statements. Watch a few highlights from the educational session below:

 

 

 

From left: Leonard Gordon, Partner at Venable LLP, Dan Frechtling, President at Verisk financial G2, Jim Ash, Director of Strategic Partnerships and Business Development, and Luis Gonzalez, US Region Operations Manager at emerchantpay gathering to discuss high-risk merchant fraud and new markets at ETA Transact 2019.

 

53 percent of fraudsters are reoccurring criminals and 85 percent of transaction laundering leads come for low-risk merchants. Bad merchants exist everywhere, but one place you don’t want them to exist is in your portfolio. To learn more about how G2’s Merchant Monitoring solutions work, please email info@g2llc.com.