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From talking with some of the companies experiencing this, I can confirm that a portion of it is actual credit card fraud. Tokens have become a pseudo-currency,
by mlenhard 2mo ago
From talking with some of the companies experiencing this, I can confirm that a portion of it is actual credit card fraud. Tokens have become a pseudo-currency, making them a prime target for abuse.
Some of the abuse is more benign, but there is also real fraud through chargebacks, account takeovers, and stolen credit cards.
- dataflow 2mo agoWhen you say a portion is that more like 1%, 5%, 20%, 50%, or 90%?
- mlenhard 2mo agoI don't have exact numbers here, and it varies by company, but a rough guess is around 10-20%. This might be a bit biased because the companies willing to talk to me are probably seeing the worst of it. Also, outside the labs, most of the companies I've talked with have shut off free tiers and free credits entirely because the abuse is so bad.