Tax Identity Theft

The term "tax identity theft" represents fraud made by someone to get advantages in tax returns and tax payments. Tax-related identity theft occurs when someone uses your stolen Social Security Number to file a tax return claiming a fraudulent refund. People create false identity by using the personal information of another person to demand a fraudulent tax return. The only way to detect this kind of fraud is a notice from IRS (The Internal Revenue Service).


Tech Support Scams

A technical support scam refers to a type of telephone fraud, where a scammer claims to be able to provide a legitimate technical support service, frequently through cold calls to innocent users, with the hopes of eliciting a payment without completing the services requested. These calls are mostly targeted at Microsoft Windows users, with the caller often claiming to represent a Microsoft technical support department.


Technology Theft

High technology crimes (or cybercrimes) are generally defined as any type of illegal activity that makes use of the internet, a private or public network, or an in-house computer system. Technology theft can be described as a scheme where different activities are conducted by one or more thieves, in order to steal techniques, resources, or devices, with the aim of obtaining personal benefits from those actions.


Telecommunication fraud

Telecommunication fraud is the theft of telecommunication services (such astelephones, cell phones, computers and so on) or the use of telecommunication service to commit other forms of fraud. Victims of the fraud include consumers, businesses and communication service providers.


Theft of Assets

Theft of assets refers to the actual theft of a person or entity's assets. Causing an organization to pay for goods and services not actually received (for example fictitious vendors or employees) or using an organization's assets for personal use are types of theft of assets.


Theft of Checks

Check theft involves stealing, and usually cashing, the check of another. Check theft may also refer to receiving goods or services by passing a bad check which is noncollectable due to insufficient funds or closed account. Penalties for this fraud vary by state.


Threat

A threat is any condition or event that may negatively influence managerial operations (include assignment, purpose, picture, or status), organizational resources, or individuals through an information scheme by using illegal access, devastation, confession, alteration of information, and/or rejection of service.


Timecard Tampering

Timecard Tampering, also known as time sheet or time card fraud, is when an employee puts down hours they did not work and collects payment for them. There are rules and laws in place against it but some employees still try to game the system to get more pay and commit time theft.


Token

A token is a unique frame that is approved from node to node about a ring system, it is a sequence of bits passed continuously between nodes in a fixed order and enables a node to transmit information. When it gets to a node that requires transmitting data, the node modifies the token into a data frame and transfers it to the receiver. A token is fundamental to the internal workings of a token ring network.


Tokenization

Tokenization is the process of replacing sensitive data with unique identification symbols that retain all the essential information about the data without compromising its security. Tokenization, which seeks to minimize the amount of data a business needs to keep on hand, has become a popular way for small and mid-sized businesses to bolster the security of credit card and e-commerce transactions while minimizing the cost and complexity of compliance with industry standards and government regulations.


TOR

TOR is a free and open-source software that allows anonymous web surfing and protecting against traffic analysis. The name comes from an acronym for a software project named "The Onion Router." The browser uses exit relays and encrypted tunnels to hide user traffic within the network.


Travel

Travel is defined as the progress of people between two distant locations. Travel could be done by foot, bicycle, vehicle, train, boat, bus, airplane, ship or further means, with or without baggage, and could be one way or round trip.


Triangulation Fraud

What is Triangulation Fraud?

Triangulation fraud is when a customer makes a genuine purchase on a third-party marketplace (for example Amazon or Sears.com), but the product they receive was fraudulently purchased from a different retailer's website. This practice harms businesses of all kinds.  Customers usually aren't aware.

Triangulation fraud denotes that there are three individuals who play a role in the order.

  1. An unsuspecting customer who places an order on an auction or marketplace using some form of credit, debit, or PayPal tender.
  2. A fraudulent seller who receives that order and then places the order for the actual product with a legitimate eCommerce website using a stolen credit card.
  3. A legitimate eCommerce website that then processes the criminal’s order.

Triangulation Fraud Infographic

The illegitimate purchase is made using stolen card information from someone else, but the shipping information of the original customer. So the customer is shipped the product, and fraudster keeps his money. Meanwhile, the fraudster charges the legitimate retailer with other credit card information, further boosting net profit.

Often, the person with the stolen credit card details will dispute this charge, causing the original retailer to refund the purchase. The customer at the beginning of the transaction has no idea. Consequently, the fraudster in the middle wins big.

The Costs

These chargebacks indefinitely hurt the merchant most. Studies show that these fraudsters will cost merchants upwards of $30 billion a year by 2020. Even at the scale of medium to small size businesses, the losses can be detrimental. A brief look at any third party marketplace forum will show hundreds of disputed transactions and mystified sellers. These losses can add up to hundreds of thousands of dollars for even the smallest enterprises. The numbers will continue to grow with the rise of eCommerce.

Protect Your Business

However, triangulation Fraud can be stopped. Address and location verification that matches the customer are just some examples of how Fraud.net's software combats fraud. With insights from user behavior, location, and fraud scoring, Fraud.net can stop transactions in place. Advanced AI technology keeps an eye on fraudsters, card information, and more. Dark web monitoring and continuous testing allow fraud prevention to develop with the fraudsters.

Above all, eCommerce will only expand. And so should your solution. With a powerful portfolio of solutions, Fraud.net can meet your unique needs to quickly and cost-effectively. Contact us for a free demo.

 


Trojan

A trojan, or trojan horse virus, is a computer program that seems legitimate, but adds malware to a device once downloaded. It’s name comes from a famous Greek tale.


True Negative

True negative, also known as specificity, is the ratio of correctly identified non-fraud cases to total non-fraud cases. A true negative test result is one that does not detect the condition when the condition is absent. It is an outcome where the model correctly predicts the negative class, for example if a disease test correctly identifies a healthy person as not having that disease.


True Positive

A “true positive” occurs when something innocent is wrongly deemed suspicious. Card issuers have developed sophisticated, automated fraud detection systems that work by detecting activities and patterns associated with fraud, but these systems don't work perfectly.This differs from false positives, which are negative results that a system incorrectly marks as positive.


Trust

A trust is a fiduciary connection where one person places some type of trust, confidence, or reliance on another person. The person who is delegated that trust and confidence would then have a fiduciary duty to act for the benefit and interest of the other party. The party who owes a duty to act for the best interest of the other party is called the fiduciary. The party to whom the duty is owed are called principal. The main purpose for fiduciary connection is to establish an honest and trusted relationship between two parties where one party can rely and be confident that the other person is working for their interest and are not using their power for their own interest or the interest of a third party.


Trusted Third-Party

In cryptography, a Trusted Third-Party (TTP) is an entity which facilitates interactions between two parties who both trust the third party; the Third Party reviews all the critical transaction communications between the parties. TTPs are ordinary in profitable transactions, cryptographic digital transactions, and in cryptographic protocols.


Two tier affiliate program

In a two-tier affiliate program, or a multi-tier program (two or more levels), the first tier of commission is the same as in a regular affiliate program. The only difference is the additional tier(s), whereby marketers also earn a commission on sales generated by people they referred to the program.


Two-Factor Authentication (2FA)

2FA or Two-Factor Authentication, also called Step-Up Authentication, is a security process in which the user provides two means of identification, one of which is typically a physical token, such as a card, and the other of which is typically something memorized, such as a security code. Two-Factor Authentication gives users an extra layer of security when accessing their online accounts. In addition to a typical combination of username and password, a second 'factor' is added, such as a numeric code displayed on a trusted device, to heighten the certainty that you are the one attempting to access your account. 2FA is a method of determining a user's identity by confirming two factors among 1) something the user knows (i.e. mother's maiden name), 2) something the user has (i.e. mobile phone) and 3) something the user is (i.e fingerprint). 2FA is a subset of the broader multi-factor authentication (MFA).

Fraud.net offers Two-Factor Authentication as a feature within our Fraud Prevention Suite.   

Here's how it works:

Fraud.net's 2FA feature gives fraud analysts the ability to send a verification text message to the phone number of a transaction. The purpose of this is to authenticate that the phone number within the transaction is owned by the person who actually placed the transaction. A Yes/No question will be sent to a phone and then based on the response the transaction, it can be auto-cancelled, auto-approved or sent to a queue for further review.

1. When a fraud analyst is reviewing a transaction, they can select the option to authenticate the transaction (Send MFA) from the dropdown menu in the top right corner:

 

2.  The fraud analyst will then confirm that they would like that message sent:

 

 

3. The admin, from the business profile page, can manage what the message says and what action occurs based on the reply. The admin can also manage what happens when no reply is received and the time frame for the reply. The default question reads as "$business name$ here. We received a transaction from $firstname$ $lastname$ for $amount$ on $orderdate$. Was this you?"
Reply Yes or No"

 

4. The transaction remains in a pending authentication queue until there is a response or it expires.

Interested in learning more or enabling 2FA within your Fraud Prevention Solution?

Speak with a Specialist Now