Breaking News: Fraudsters Exploiting 3rd Party Fraud Tools w/ Nate Kharrl @ Spec

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Over the last several months, dozens of merchants have reported anomalist fraudster behavior that they haven't been able to detect or understand the root cause.

• Fraud detection systems not being as accurate as in years past (higher declines, false positives, and chargebacks)
• Chargebacks for orders that were only 1 or 2 points below their fraud tool's decline threshold (How do they know my fraud vendors' scoring system?!)
• Bot attacks that bot mitigation/detection companies are unable to detect

And then, Karisse spoke with her friend, and the CEO of Spec, Nate Kharrl. Because of the enhanced visibility that Spec has into every customer journey for each of their e-commerce & B2C Fintech clients, he & his team at Spec have had the ability to watch, in real time, as fraud rings exploit different gaps within the API connections between online merchants & their 3rd party vendors. And the results? -Exactly what merchants have shared with Karisse in the last year.

So, Karisse asked Nate to join her on Fraudology ASAP to share the different types of exploits targeting the system connections between online companies & several fraud solution providers that they've observed.

While knowing the "what" is 1/2 the battle when trying to understand new fraud tactics, Nate helped fill in the blanks for everything else you & your company need to know, to identify 1. If these attack methods are targeting your company/vendor communication and 2. What can be done to close the gaps (and because Nate isn't a "typical vendor", he provided suggestions that can be done without using Spec as a platform; although, in most cases, using Spec would be easier. -And faster!). Some of the other points covered:

• The different ways fraudsters are exploiting 3rd party fraud tools, which types of 3rd party tools are most vulnerable, and how they are able to exploit specific gaps within the communication flow between a merchant & their provider (often without you seeing them until the losses already occurred)
• The symptoms your company may be experiencing due to each of these tactics
• The standard "party line" you're probably told when asking your provider the reason for a sudden change in performance (But also, why they may not know any better)
• Why fraud vendors aren't necessarily at fault for these gaps and what can be done to close the gaps to prevent these particular exploits (w/ or w/o Spec's TrustCloud)

In online fraud prevention, especially, knowledge is power. Because, when we know more, we can do more. And this episode should be a MUST LISTEN to everyone in online fraud prevention because our tools are under attack, and need to be better protected!

Fraudology is hosted by Karisse Hendrick, a fraud fighter with decades of experience advising hundreds of the biggest ecommerce companies in the world on fraud, chargebacks, and other forms of abuse impacting a company's bottom line.

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She brings her experience, expertise, and extensive network of experts to this podcast weekly, on Tuesdays.