Fraud Protection Basics

📘

PayMongo employs sophisticated technology to protect your business, but understanding the landscape of online fraud helps you act as a second line of defense.

How PayMongo Protects You

We utilize a robust Machine Learning Engine that analyzes thousands of signals from historical and real-time data to detect patterns indicative of fraud.

• Real-time Detection: We automatically block high-risk attempts before they reach you.
• Fraud & Risk (F&R) Team: A dedicated team monitors complex threats and manages risk parameters.
• 3D Secure (3DS): We support 3DS protocols, which add an authentication step (OTP) for customers, shifting the liability for fraud away from you in many cases.

Common Types of Online Fraud

Phishing & Account Takeover

Fraudsters steal login credentials or credit card details via fake emails or websites. They then use these stolen details to make purchases on legitimate sites like yours.

Card Testing

Fraudsters use software to test thousands of stolen card numbers with small amounts to see which ones work. You might notice a sudden surge in low-value transactions or declines.

Friendly Fraud

This occurs when a legitimate customer makes a purchase but later disputes it, claiming they didn't authorize it or didn't receive the item. This can be accidental (forgetfulness) or intentional abuse.

BOPIS (Buy Online, Pick-up In-store)

Fraudsters target this method because it often lacks a "Proof of Delivery" paper trail (like a shipping waybill). Always require a valid ID and the physical card upon pickup.