Home 2017 October

Should You Trust Online Tech Support Companies?

Imagine you are on your computer and while looking at a website you are informed that your computer is infected.  It may make you want to immediately move to react.  And that fear is exactly what disreputable tech support firms are expecting.

With a strong recommendation to download spyware and a toll free number to call, some tech support companies will promise quick removal of nasty viruses.  But the question you need to ask yourself is whether your PC is really infected in the first place.  If you already have up-to-date legitimate computer security, chances are you don’t have to worry.  But many folks take the bait and get hit with fees that can run as high as $500.

Recently the FTC reached settlements with two unrelated parties with respect to PC tech support scams.  Both were caught as part of the FTC’s Online Tech Trap crackdown.  In short:

“Tech support scams prey on consumers’ legitimate concerns about malware, viruses and other cyber threats,” said Tom Pahl, Acting Director of the FTC’s Bureau of Consumer Protection. “The FTC is proud to work with federal, state and international partners to take down these scams, and help consumers learn how they can safeguard their computers against real cybersecurity threats.”

To date, 29 companies have  been identified possible culprits in this crackdown.  Settlements have been negotiated with two of the 29, more may be coming.

With online tech support or any other service company that bills and services over the Internet, be careful in reviewing the company before you sign up for any service.  A smart consumer is a cautious one.

Fully Outsourced Fraud Management & Prevention – Is It Right For You?

This is a hot topic lately.  Why?  Because there are a lot of cool tools on the market with slick sales teams telling you that it’s easy to manage chargebacks and fraud yourself.

But is it?

Recently I was reading a quote from KC Fox of Radical, an omnichannel payments platform company wherein he surmised that there’s more to fraud management than you think.

It’s not enough to hire a few experts to look at things, set up a solution and go. Because fraudsters’ strategies are constantly changing, so must merchants’ defenses, and that requires constant attention and upkeep. Whose job will it be to stay on top of that? At what point is it eating up too much of their time, costing the company in labor expenses? Plus, said Fox, a one-time solution reveals nothing about trends. Hiring a separate analyst to track those trends is another expense.

These are valid points.  Beyond that, I’d even go as far as to say that finding an expert these days is pretty difficult unless you are a large issuer or acquirer who may be training from the ground up.

One of our clients has learned the lessons of how difficult it can be to manage chargebacks and fraud on their own.  They are a large, international corporation with a small team (4 people) dedicated to fighting fraud.  Despite the use of great tools and certainly plenty of effort and enthusiasm, they failed to curb a climbing fraud rate.

When we stepped in, they were already in month three of VISA’s Chargeback and Fraud Monitoring Program.  Not a great place to be unless you enjoy getting fined.  But using our tools and allowing the data to ‘speak’, we dropped their fraud by 90 percent over a six month period.

The question I’d recommend you ask yourself is why would your team be more successful than this $400 million company?  If you don’t have a clear answer, consider an outsourcing option by a proven company.  Chances are you’ll save more than you’ll spend!

Canada Moves Toward Open Banking (Cautiously)

The Canadian Bankers Association has submitted its response to the Department of Finance’s second consultation paper on the review of the federal financial sector framework.  The response which could move Canada’s financial system closer to more open integrations with platforms offered by fintechs and large technology firms (Apple or Alphabet) to offer financial services.

In a nutshell, the CBA is urging a level of caution.

“Banking is evolving at record pace. It’s critical that the legislation governing the industry reflects this reality and facilitates the investments in technology that will keep Canada a leader in financial services innovation,” said Neil Parmenter, President and CEO of the Canadian Bankers Association. “The federal government is taking important steps in this consultation to modernize the banking ecosystem that will carry Canada into the future and benefit all stakeholders.”

But the CBA also states that there is more than just caution being advised they highlight the following:

  • Clarifying the scope of technology-related activities banks can engage in
  • Facilitating collaboration between banks and fintech companies
  • Easing the regulatory burden and capital expectations of small and mid-size banks
  • Creating a new cybersecurity strategy and making Canada a global leader in the field
  • Supporting a dedicated consumer protection framework under the oversight of the Financial Consumer Agency of Canada.

In a fast moving world, perhaps speed for speed’s sake should not be the prevailing thought framework.  At least not in Canada.