When creating a fraud strategy, the top concern for many organizations accepting online payments is preventing payment fraud. This makes sense, but failing to consider other types of illicit activity can be costly. In fact, most marketplace fraud spending is not related to payment fraud, but rather other forms of illicit activity that includes collusion, trade base laundering, and transaction laundering. These result in economic losses, and worse in negative reputation impact.
There is a wide margin for organizations to address other types of risk before it becomes fraud on the payments side, yet many fall short in managing non-payment related threats. Bank Secrecy Act (BSA) compliance is the needed counterpart to payment fraud for a holistic risk strategy approach that effectively addresses digital marketplace threats.
To talk about how risk goes beyond payment fraud and how BSA compliance can bolster organizations’ risk strategy approach in digital marketplaces, PaymentsJournal sat down with Jose Caldera, Chief Products Officer at IdentityMind, an Acuant company, and Tim Sloane, VP of Payments Innovation at Mercator Advisory Group.