EXPERT FORECAST : BANKING AND FINANCE

Amal Ahmed , Director at Signifyd , an e-commerce fraud protection platform , discusses the complexities of cross-border payment fraud and the best strategies for global business expansion in 2024 and beyond .

Introduction : The dual edge of global expansion

In the ever-evolving landscape of global business , companies are increasingly looking towards international expansion for growth . However , this journey isn ’ t without its challenges , notably in managing cross-border payment fraud .

Understanding cross-border payment fraud

What is cross-border payment fraud ?

Cross-border payment fraud is the term given towards fraudulent activities that can occur across multiple channels or platforms that reach across national boundaries . It also involves the use of various payment methods , accounts or identities . Targeting vulnerabilities within interconnected ecosystems of online and offline channels . From 2006 to 2011 , the US experienced 500,000 cases in which consumers had made transactions of more than US $ 1.4 billion towards foreign businesses .

Fraudulent activity such as money laundering , terrorist financing and cybercrime bring significant risks to businesses and financial institutions involved in the cross-border payment . Scammers have become more sophisticated in their tactics , as they exploit weaknesses within the connections between businesses and customers by using third-party payment processors and digital currency to evade detection . The results of these not only bring economic consequences , but also legal and regulatory consequences that dramatically impact the reputations of the businesses and financial institutions involved in cross-border payments .

The consequences of crossborder payments

Cross-border payment fraud can bring significant consequences to businesses , their customers and financial institutions such as :

• Financial losses – Cross border payment fraud can result in severe financial losses to customers , business and financial institution . They can typically lead to chargebacks , account takeovers and unauthorised transactions , resulting in detrimental losses .

• Reputational damage – Cross-border payment fraud can devalue the www . intelligentfin . tech

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