Where can developers connect with an active PayPal user and API community?
Payments
Asked by Question Bot12/May/20121 answer
1 Answer
F
Faisal Khan
Answered 12/May/2012
The most widely circulated fraud practices are those associated with phishing. To enable an ACH transaction, criminals, usually require the Checking Account number of the victim and the Routing Number. With these two essential elements in hand, one can wreck havoc as far as ACH transactions are concerned.
The most common method of obtaining this information is via phishing and/or compromising a victim's computer with a remote access trojan (RAT). Once you have access to the machine, the first thing fraudsters do is to wipe your cache directory clean, thus forcing you to retype your password and via key-logging - capture that (for your banking access, etc.) This information is then used to commit fraud (i.e. illegal / unauthorized wire transfer from your account that is instantaneous almost).
Business accounts are more prone to fraud than individual accounts. Another technique though is more of a risk versus a fraud is the charge-back technique.
It is commonly used by very clever / notorious people. Say for example you want to send money abroad, you search for a website that allows you to send money via e-check.
You make a transaction from your account, but from an open-wifi not in your immediate area. Once the transaction is done (and for all intent and purposes it is a genuine transaction with all the valid credentials), you 'reverse' the transaction or challenge it after 4-5 days.
Two things have happened so far:
- The beneficiary in the beneficiary country has cashed the money and walked away.
- Dealer or remitting bank now suddenly faces a 'reversal' of an ACH transaction (as allowed by law) and has to fund this transaction themselves. Changes are your bank will vote in your favor and pull the money off from the remitting bank/dealer.
It basically takes advantage of the charge back featured as associated with a ACH settlement. One cardinal mistake that fraudsters make is for example if the account holder is Indian, and the money is wired to India, then most likely this was a purported fraud and the bank will not reverse it.
If the transaction were to wire the money to China, this would be a mistmatch and the bank will most likely grant you a reversal.
The most common method of obtaining this information is via phishing and/or compromising a victim's computer with a remote access trojan (RAT). Once you have access to the machine, the first thing fraudsters do is to wipe your cache directory clean, thus forcing you to retype your password and via key-logging - capture that (for your banking access, etc.) This information is then used to commit fraud (i.e. illegal / unauthorized wire transfer from your account that is instantaneous almost).
Business accounts are more prone to fraud than individual accounts. Another technique though is more of a risk versus a fraud is the charge-back technique.
It is commonly used by very clever / notorious people. Say for example you want to send money abroad, you search for a website that allows you to send money via e-check.
You make a transaction from your account, but from an open-wifi not in your immediate area. Once the transaction is done (and for all intent and purposes it is a genuine transaction with all the valid credentials), you 'reverse' the transaction or challenge it after 4-5 days.
Two things have happened so far:
- The beneficiary in the beneficiary country has cashed the money and walked away.
- Dealer or remitting bank now suddenly faces a 'reversal' of an ACH transaction (as allowed by law) and has to fund this transaction themselves. Changes are your bank will vote in your favor and pull the money off from the remitting bank/dealer.
It basically takes advantage of the charge back featured as associated with a ACH settlement. One cardinal mistake that fraudsters make is for example if the account holder is Indian, and the money is wired to India, then most likely this was a purported fraud and the bank will not reverse it.
If the transaction were to wire the money to China, this would be a mistmatch and the bank will most likely grant you a reversal.
- Fraud Prevention Tips: http://www.katahdintrust.com/hom...
- ACH / Wire Fraud Prevention: http://www.intellinx-sw.com/solu...