· Fraud-related challenges in the cryptocurrency industry expected to rise amid the global COVID-19 pandemic.
· Cryptocurrency brokers and exchanges using Worldpay’s Fraud Freedom service, powered by Forter, will receive indemnification for fraud-related chargebacks.
FIS™ (NYSE: FIS), a global leader in financial services technology, today announced Fraud Freedom, a new chargeback indemnification service designed for cryptocurrency brokers and exchanges.
Worldpay’s Fraud Freedom service helps crypto brokers and exchanges optimise payment conversion and authorisation rates while providing indemnification from Forter, the leading eCommerce fraud prevention provider.1
The cryptocurrency market continues to grow rapidly following a 600 percent increase in crypto-based trading volume in 2019.2 As the COVID-19 crisis has accelerated consumer trading volumes in the cryptocurrency marketplace, crypto brokers and exchanges are looking to deliver a secure, frictionless experience for their customers while minimising fraudulent transactions.
Powered by Forter, the new Fraud Freedom service helps cryptocurrency brokers and exchanges identify malicious actors throughout all points of the customer journey and prevent them from making fraudulent purchases, trades, or distributions of cryptocurrency. The AI-driven service leverages real-time learning from across Forter’s network to update its fraud models, helping organisations reduce the financial burden associated with fraudulent chargebacks. As a highly automated service, Fraud Freedom can also provide cost savings for clients by reducing the need for manual transaction review.
“The cryptocurrency market is growing rapidly, which is exciting to see, but the reality is that it is a high-risk sector for fraud that demands innovative solutions,” said Shane Happach, EVP, Head of Global eCommerce, Worldpay Merchant Solutions, FIS. “By combining with Forter’s market-leading network- and AI-based fraud prevention system, FIS can help its cryptocurrency clients shift from a niche market to the mainstream while maintaining high standards of security.”
“Fraud protection in general, and especially in high-risk industries, must be highly adaptive and nimble. This can only be achieved when an AI-based system, which is able to learn from a vast number and diversity of transactions, is combined with proactive research and expert insights,” said Michael Reitblat, CEO of Forter. “Working with Worldpay to bring Fraud Freedom to the cryptocurrency market lets us leverage the strength of our system in a potent arena for fraud, which, in turn strengthens our system with a broader array of payments data insights with a continuous feedback loop.”