What is payment fraud and why is it important to be protected?
The most common type of payment fraud is identity theft: through hacking, phishing or social engineering, a fraudster steels confidential personal data allowing them to initiate a payment in the name of someone else. As fraudsters’ methods become more and more sophisticated, protecting your business and your clients from fraud can be complex and requires adapted tools and technology.
Payment fraud concerns all payment methods, but Fintecture’s payment methods perform better than most: while 0.003% of all Fintecture transactions are deemed to be fraudulent, card payments’ fraud rate is 20 times higher at 0,058%*.
How can Fintecture's anti-fraud technology protect my business and my clients from fraud?
As combatting fraud and securing payments is a top priority, Fintecture has built state-of-the art technology to prevent and actively combat payment fraud to protect businesses and their clients alike. Our payment solutions are designed for safety from their inception.
Fintecture implemented additional protective measures to combat payment fraud: the Transaction Monitoring System (TMS) and the Premium Fraud Shield (PFS).
The Transaction Monitoring System (TMS): Fintecture’s own sophisticated and ever-evolving transaction monitoring technology
All transactions are screened by our Transaction Monitoring System (TMS) to detect suspicious activity. With over 60 specialized transaction monitoring rules designed to cater to the diverse range of locations, amounts, and industries within Fintecture's scope, our system identifies and flags potentially suspicious payments. This adds an extra layer of security to complement the required checks and protective measures, such as Strong Customer Authentication (SCA).
Dedicated Fraud Analysts check all suspicious payments flagged by our TMS. Once suspicions are confirmed, our Customer Support Team proactively reaches out to our clients, providing direct communication to inform and assist them in taking necessary actions. Our knowledge and experience in fraud prevention grow over time, allowing Fintecture to consistently refine its Transaction Monitoring System (TMS).
Our transaction monitoring system is checking all transactions for all of our clients. It allows us to:
Comply with laws against anti-money laundering and combat the financing of terrorism (AML/CFT).
Tailor our monitoring rules to various industries and contexts.
Fintecture’s Premium Fraud Shield (PFS): our most advanced, proactive anti-fraud tool
Fintecture has implemented a robust second line of defense against payment fraud that serves as a complement to the TMS. While the TMS' action consists of monitoring and assessing all transactions after they have been executed, the PFS goes one step further, as it is able to proactively block or revert suspicious payments.
The PFS, already operational for our major clients, is tailored for each business and its specificities. With the PFS, Fintecture will make you strike the ideal balance between risk and benefit. The parameters of each client's PFS are meticulously tailored to their specific industry and risk tolerance, ensuring a secure environment while optimizing client conversion rates.
The PFS was designed drawing on Fintecture’s extensive banking knowledge. Under DSP2 (Payment Services Directive 2) regulations, banks are mandated to communicate payer's bank account details via the payment confirmation API, enabling the identification and blocking of suspicious payments. However, compliance with DSP2 varies, with certain banks still failing to provide this information. Fintecture steps in to fill the gap with the PFS, and can promptly and proactively blocking suspicious transactions, thereby mitigating risks and enhancing overall security.
ℹ️ For price and conditions, please get in touch.
Fintecture’s Fraud Shield statuses
If you are one of our PFS-enabled client, please read on to find out how Fintecture is protecting you.
ℹ️ If you are interested in our PFS add-on, please get in touch.
In the Payments tab of your Fintecture Console, payments that were flagged as potentially fraudulent will display a Fraud Shield status.
If you click on the payment line, you will find information about how the fraud was detected and acted upon.
Please, note that a ! icon by the Fraud Shield status signifies that a fraud was detected but not acted upon. You may refund the payer if you wish so.
Please, read-on for a summary of our Fraud Shield payment statuses and their meaning.
Payment details | Meaning |
Fraud averted. This payment was flagged as a fraud attempt. The payment was not processed. | Fintecture’s PFS flagged this payment as fraudulent and prevented its execution. No further action is needed on your part. |
Fraud averted. This payment was flagged as a fraud attempt. The funds have automatically been returned to the client. | Fintecture’s PFS flagged this payment as fraudulent and the client was instantaneously refunded. No further action is needed on your part. |
Fraud averted. The funds were automatically returned to the client. | These payment details appear on the refund processed instantly by our PFS following a fraud attempt (see above). |
Fraud averted. This payment was flagged by the payer’s bank as a fraud attempt. The payment was not processed. | The payer’s bank identified the payment as being fraudulent and prevented its execution. No further action is needed on your part. |
Fraud detected. This payment was flagged as a fraud attempt. You may refund the client. | Fintecture’s PFS flagged this payment as fraudulent but could not prevented its execution. You may refund the client. |
What is Fintecture’s commitment against payment fraud?
As a payment institution regulated by ACPR in France, Fintecture collaborates closely with payment regulators to enhance the security of payment ecosystems. For instance, we advocate for a more secure payment environment by demanding that payments initiated without Strong Customer Authentication (SCA) may be revoked, so that we are able to intervene in case of fraud.
Fintecture also shares payment fraud experience and expertise with banks and operates alongside them to combat fraud. When fraud suspicions are reported by individuals who have fallen victim to identity theft, businesses flagging suspicious transactions, banks, or public authorities, Fintecture conducts thorough investigations in collaboration with other actors of the payment ecosystem to provide effective responses to clients and payers alike.
Fintecture is a member of the “Prevention against fraud on payment methods” group within the Comité Français d’Organisation et de Normalisation Bancaires. A Fintecture representative is also involved in the work of the “sécurité des paiements” group of the European Payment Council (EPC).
*Source : Observatoire de la sécurité des moyens de paiement - January 2023