Case Study On 3rd Party Online Payment Fraud And Anti-fraud Methods

With the popularity of mobile networks and mobile phones,the 3rd party payment has exceeded the scope of online shopping,and began to cover all aspects of life.Nowadays,3rd party payment is everywhere like money transfer,paying fees,paying credit card bills,020 payments,food and beverage consumption,supermarket,convenience store consumption,travelling,finance,social occasions and many other scenes.3rd party payment has not only brought invisible convenience for each person's life and work,but also brought more intermediate business income for the traditional banks and accelerated the establishment of the whole society credit system.However,the fraudulent behavior of payment transactions is increasing quickly as well.Trojan Horse,fake payment page,fake two-dimensional code,bar code are used to steal information and fraud phenomenons emerge in an endless stream.How to ensure the security of the third 3rd party payment is also increasingly important.This paper first described the concept,development history,government regulation of domestic and international 3rd party industry,and also introduced and compared main 3rd party payment companies in the world.Secondly,on the basis of a brief introduction of the largest foreign 3rd party payment company PayPal and its transaction process,to lay the foundation for the next step to use PayPal's real cases to summarize fraud risks.The paper analyzed PayPal cases of traditional stolen account,stolen card,cash advance fraud and new emerging buyer&seller complicity,money laundering,credit fraud activities,and puts forward some anti-fraud countermeasures.Different from the domestic Alipay seller receiving payment after buyer confirming receipt of shipment,PayPal's seller get payment instantly.Instant payment transfer requires higher levels of anti-fraud control.PayPal has a sound security system,rich experience in fraud prevention and low risk loss rate reputation in the industry.3rd party payment companies are required to establish a 7x24 hours of risk control model,real-time user feedback system,rich experienced risk management team,flexible and useful buyer and seller protection policies to protect the rights and interests of both users and the 3rd party payment institution itself.Through the case analysis of PayPal company,I hope to offer some suggestions of the construction of anti fraud measures for the 3rd party payment agencies in China,with the expect to create more effective and efficient 3rd party payment companies.