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Total transactions: $41M Blocked fraudulent: $4.8M So that’s nearly 12% of the transactions suspected fraudulent - that’s nuts
by roughly 3y ago
Total transactions: $41M
Blocked fraudulent: $4.8M
So that’s nearly 12% of the transactions suspected fraudulent - that’s nuts
- pc 3y agoThere's a lot of online fraud. We invest a ton in Radar, our payment surfaces, etc., to keep this as invisible as possible to businesses. (We don't always succeed, of course. But, despite the growing sophistication of the fraudsters themselves, we do generally get better every year.)
- terminous 3y agoIf you enter the wrong CVC or ZIP and it is declined, does that increment your blocked fraud counter?
- handelaar 3y agoNo. It used to but they turned it off in Dec 2021; notice in my dashboard says it improved sales revenue by 0.5% but only added fraud risk by 0.0004%
- deleted 3y ago[deleted]
- granzymes 3y agoThe intuition here is that the rules that block when CVC/ZIP doesn’t match necessarily happen after the bank already decided the transaction was okay, because that’s when Stripe learns whether CVC/ZIP match what the bank had on file. So if you block on a mismatch, you’re throwing away an approved charge every single time since the bank already decided that other signals say the transaction is okay. The bank can block it themselves if they think it’s suspicious (which from my understanding wouldn’t increment this metric).
- deleted 3y ago[deleted]
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- Darmody 3y agoThat's a good question. I once had my payment flagged as fraudulent because the card owner was not the same as the shop account owner. My bank decided it was a good idea to block my card without telling me anything. I realized a couple days after when I couldn't pay my groceries.
- laaaaea 3y agoThere's a lot of fraud. Period. I assumed stripe founders had offline business experience before stripe :) Online maybe increase it a little more and make it more risky to the business because of "card not present". But hardly new to online. There's also a lot of false positives if you verify too much on data brokers, as you just mentioned you do, instead of talking to the issuing institution on fears of chargeback and rate hikes.
- cuuupid 3y agoOut of curiosity do you share the suspected fraud with law enforcement? At that amount there are probably too many to chase down so I’d think this is just an unprosecuted crime?
- smokefoot 3y agoGenerally the bank will file a Suspicious Activity Report (SAR) with FINCEN for egregious cases. I don’t think intermediaries like stripe have any direct responsibility in this respect but I could be wrong. The volumes are huge and few SARs actually are investigated or prosecuted.
- fragmede 3y agoSARs are for, like, attempted funding of terrorists. fraudy cc attempts don't scratch the surface
- smokefoot 3y agoUm, no. Banks file a lot of those. If it’s me using my dads credit card number then sure, not a SAR. But most of that activity is systematic: either backed by organized crime or a semi-professional fraudster. Those most definitely would get a SAR
- fragmede 3y ago> If it’s me using my dads credit card number then sure, not a SAR. I was imaging that end of the spectrum, but you're right, when it escalates to organized mafia gang criminal organizations there would be SARs.
- smokefoot 3y agoSorry that was probably an overly snarky response on my part. Stripes product is actually aimed at merchants so two steps removed anyway.
- deleted 3y ago[deleted]
- ajryan 3y agoCan you estimate what proportion of fraud is automated/bot/scripted versus manual human interaction? Do you rely much on botnet detection or IP reputation?
- laaaaea 3y ago[flagged]
- dragoncrab 3y agoAnd there are 100 times more potentially fraudulent transactions than climate contributions. Humanity at scale...
- gruez 3y agoHow are "climate contributions" defined? The IRA spends hundreds of billions on climate related projects. If those count those would exceed the fraud numbers by orders of magnitude.
- freyfogle 3y agoThere is a program called Stripe Climate. Check it out. You can donate a percentage of revenue to carbon capture projects. https://stripe.com/climate https://stripe.com/climate
- alberth 3y agoFrauds even higher than that. That doesn’t count the fraud the issuer also blocks.
- pprotas 3y ago12% of the money is suspected fraudulent, not the transactions, right? So could be that fraudulent transactions are a smaller volume of the total transactions, but they simply tend to be higher in terms of dollar amount.
- huhtenberg 3y agoGP got it wrong. These are transaction counts, not $ totals.
- pc86 3y agoFraud is typically very small dollar amounts used to test the card. Partially to try to go unnoticed but also to leave as much of the limit available as possible for intended purchases later.
- ajryan 3y agoCard testing doesn’t require a purchase, fraudsters can validate a card by adding it to an online wallet. The retailer will send a $0 authorization to the bank. Fraud happens across all transaction amounts, what do you think people use the cards for once they buy or guess a valid card?
- __float 3y ago$0 authorizations are routinely skipped, though - the fees add up substantially because of card testing, some card networks don't support it (and instead you need $1 or similar), and it can be confusing for customers.
- hanniabu 3y ago[flagged]