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The dark side of the World Cup

This article is more than 12 months old

Major sporting events give fraudsters the chance to scam customers and merchants through digital means

What a World Cup it has been, and what an ending to close the tournament.

Six goals, a VAR-awarded penalty, an own goal and a pitch invasion.

Croatia, despite their defeat, can hold their heads up high.

The team's performance was an inspiration, with proud Croatians claiming it has brought an optimism to their society.

This sort of unbridled joy makes the World Cup a boon for businesses - both for the host and around the world.

Russia has reported that it expects a 15 per cent increase in international influx of tourists following the World Cup.

But sporting optimism and the resulting uptick in consumer spending also has a dark side, creating a perfect opportunity for fraudsters to strike.

Any major sporting event, though perhaps the World Cup more than any other, presents opportunities for fraudsters to harvest card details using a range of scams and technology - and then take advantage of "out-of-the-ordinary" purchasing behaviour of genuine e-commerce consumers to successfully defraud merchants.

Phishing scams and fake URLs can be used to lure fans into parting with credit card details in return for a replica kit that never arrives, while open Wi-Fi hotspots in public viewing areas can be easily set up by fraudsters who can intercept data.

With visitors converging from around the world, often unaware of the sophistication of fraudsters, there is a particularly high potential, and incidence, of fraud scams in a host country.

Travelling fans are also prone to letting their guard down, especially when in the throes of celebration after their team has just snatched victory from the jaws of defeat.

Below are some of the common scams and tactics that are used to dupe consumers by obtaining payment or card details for fraudulent purposes.

Most of these are by no means specific to host nation Russia:

  • ATM skimmers in host cities
  • Compromised credit card payments in stores
  • Bogus travel agencies
  • Unsecured Wi-Fi networks
  • Visa application form scams
  • Fraudulent ticketing (including phony "official partner" contents)

The message to consumers is clear enough - it starts with educating yourself regarding potential scams and exercising additional caution, especially when travelling.

But what about merchants? Thinking about fraud strategy at the business end of the tournament is the proverbial ambulance at the bottom of the cliff, but bear in mind now that the world cup has concluded, the next major global sporting event is just around the corner.

As fraudsters make a concerted effort to harvest card details (which are often then sold on the Dark Web), merchants need to get better at spotting stolen card details when they show up in their stores - they need to focus on identifying the shopper rather than the transaction.

Stream analytics is one approach that can help, with improved accuracy of rules leading to more accurate outcomes.

This is particularly important when there is a fine line between identifying fraud and blocking genuine shoppers.

Within the context of global sporting events, it is also a benefit to utilise global consortium data for positive profiling.

This can not only increase conversions and reduce fraud and chargebacks, but also help to reduce payments friction, leading ultimately to a better customer experience.

The phishing can start many months before the first match, so merchants should plan early, ideally with the support of expert risk analysts who are able to optimise and finetune a fraud strategy, and also have some understanding of the types of fraud that are happening.

Remember, fraud trends evolve quickly, and defending against fraud requires constant attention.

What worked four years ago may no longer be effective.

Just ask our friends from Germany, Argentina, Portugal, et al. I'm sure many of them would agree too.

The writer is director of fraud product management at ACI Worldwide. This article appeared in The Business Times yesterday.

BUSINESS & FINANCE