The Weekly Fraudcast

Stop giving away store credit for missing packages.In this episode of The Weekly Fraudcast, Vito and Gena tackle the massive $8.2 billion porch piracy problem and the underground economy of refund scammers.Industry experts Paula, Jamie, Matthew, and Lizzie reveal why appeasing repeat complainers with store credit often results in double losses when they inevitably file a chargeback anyway.The community breaks down why traditional delivery signatures fail, how underground guides teach criminals to manipulate tracking IDs, and exactly when you need to calculate a customer's true lifetime value and fire them.👇 WHAT WE COVER:🔹 The Store Credit Trap: Why refunding the original payment method is your only true chargeback protection.🔹 Fake Tracking IDs: Inside the online guides teaching people how to systematically abuse your return policies.🔹 Delivery Signatures: Why adding signature requirements just costs you money without providing compelling dispute evidence.🔹 Firing Bad Customers: Using data analytics to sever ties with policy abusers before they drain your margins.⏳ EPISODE CHAPTERS:00:00 - Intro02:01 - Refund policy alternatives to chargebacks05:16 - Store credit vs cash refunds07:52 - Layered customer approach strategies11:31 - Nancy Drew investigation techniques15:20 - Problem customer identification methods19:09 - Warranty claim verification challenges24:31 - Customer lifetime value calculations26:01 - Online fraud guide investigations29:01 - Porch piracy statistics revealed32:29 - Signature requirements effectiveness debate34:12 - Creative signature verification methods37:22 - Evidence submission analytics breakdown39:14 - Six fraud detection signals🔗 Connect with Vito on LinkedIn: https://www.linkedin.com/in/vitopetruzzelli/🔗 Connect with Gena on LinkedIn: https://www.linkedin.com/in/gena-rivera/

If you are relying on single-axis velocity rules, you are catching good customers in your nets. In this episode of The Weekly Fraudcast, host Vito Petruzzelli breaks down the Q1 2024 earned-out fraud vintage. Vito explains why traditional high purchase velocity rules are failing, and introduces the Multi-Axis Velocity framework to modernize your detection strategy. By analyzing addresses, payment BINs, IP ranges, and device fingerprints simultaneously, risk teams can uncover hidden mule networks and drop houses without adding checkout friction. The community also explores identity validation tools for family accounts and prepares for event-driven fraud spikes around the upcoming World Cup. 👇 WHAT WE COVER:🔹 The Velocity Blind Spot: Why account-level velocity rules block legitimate customers. 🔹 Drop House Defense: Using post-purchase address normalization to catch manipulated formatting. 🔹 Event-Driven Fraud: Navigating legitimate international volume vs. coordinated attacks during the World Cup. 🔹 Q1 Vintage Audit: Finding your biggest bleeding points from January through March. ⏳ EPISODE CHAPTERS:00:00 - Intro11:44 - Q1 2024 fraud vintage analysis begins14:00 - Job market updates and career transitions21:04 - High purchase velocity fraud patterns explained24:06 - Multi-axis velocity detection strategies26:58 - Address verification and normalization challenges32:06 - Identity validation tools and techniques37:30 - World Cup event fraud considerations40:02 - Q1 charge back analysis action items43:38 - Post purchase address normalization benefits45:42 - Closing thoughts and community appreciation

Fraud teams are no longer just fighting chargebacks; they are battling sophisticated logistics rings and AI-powered returns abuse.In this episode of The Weekly Fraudcast, Vito Petruzzelli and Gena Rivera bring on John Mayover, Senior Manager of Ecommerce Fraud and Compliance at URBN.John reveals how he accidentally started his 16-year fraud career by solving a puzzle at a bank, leading him to uncover massive operations like the "Cousin Network"—an insider-threat ring at a FedEx hub.The conversation dives deep into the post-pandemic explosion of returns fraud. John details how bad actors are exploiting "keep it" policies and using AI-generated scripts to socially engineer customer service reps.He also outlines his "Five Families" framework, proving why cross-departmental unity is the only way to stop modern ecommerce fraud.👇 WHAT WE COVER:🔹 The Cousin Network: Uncovering a sophisticated supply chain theft ring involving insider logistics help.🔹 Returns Abuse Tactics: How fraudsters use dollar-store shirts and iron-on logos to scam generous return policies.🔹 The AI Threat Reality: Why shopping bots aren't the primary concern for fashion retail, but AI-driven social engineering is.🔹 The Five Families: Uniting fraud, customer service, warehouse, supply chain, and tech to close communication gaps.⏳ EPISODE CHAPTERS:00:00 - Intro03:45 - Accidental fraud career discovery05:11 - Bank puzzle solving breakthrough08:37 - Building fraud programs from scratch10:38 - First major fraud scheme uncovered12:25 - Cousin conspiracy at Fedex hubs14:23 - Returns abuse explosion post pandemic16:45 - Five families collaboration strategy18:21 - Tech team builds custom dashboards21:27 - Stakeholder relationship building tactics24:00 - Technology gaps in fraud detection26:34 - Systems integration success story28:36 - Handling rejection and pushback31:27 - AI commerce current fraud impact32:36 - Social media monitoring operations36:21 - Subscription model fraud patterns38:55 - Future fraud evolution predictionsJoin the Fraudcast Ecosystem:🔗 Connect with Vito on LinkedIn: https://www.linkedin.com/in/vitopetruzzelli/🔗 Connect with Gena on LinkedIn: https://www.linkedin.com/in/gena-rivera/🔗 Connect with John on LinkedIn: https://www.linkedin.com/in/john-mayover-bb2a33102/

You are likely losing more money to your own fraud rules than to actual fraudsters. In this episode of The Weekly Fraudcast, Gena Rivera and Stingray Fraud Intelligence founder Jared Gruenberg dissect the most expensive problem in e-commerce: false positives.\Jared reveals the shocking math behind overly aggressive fraud controls, explaining why false positives cost 4.5x more than actual fraud losses, and why 38% of wrongfully declined buyers never return.The conversation exposes exactly where AI models fail—struggling with context around college campus addresses, "Buy Online, Pick Up In Store" (BOPIS) orders, and prepaid cards used by the unbanked.Jared outlines why the human analyst is still the ultimate defense, and how fixing the communication gap between customer service and risk teams can rescue your top-line revenue.👇 WHAT WE COVER:🔹 The False Positive Multiplier: Why turning away a legitimate customer damages revenue and long-term brand equity.🔹 AI's Blind Spots: The specific address normalization issues that cause AI to flag legitimate drop-shipping and university deliveries.🔹 The Customer Service Disconnect: How broken feedback loops hide false positive patterns from your risk team.🔹 The Unbanked Dilemma: How standard fraud rules actively discriminate against 25% of Americans relying on prepaid cards.⏳ EPISODE CHAPTERS:00:00 - Intro02:28 - Jared's fraud journey from behavioral health to live stream auctions06:06 - Childhood fascination with infomercials and early fraud detection instincts10:48 - False positives problem hurts good customers more than fraud itself14:21 - Casio watch false positive terrorism example from 9/11 era17:55 - Why false positives happen and analyst turnover challenges20:22 - False positives cost 4.5x more than actual fraud losses22:53 - Shelley's apparel return abuse investigation false positive nightmare25:14 - Jamie's customer service feedback loop struggles with false positives32:46 - Two sided marketplace false positive communication strategies36:01 - AI vs manual review debate for reducing false positives40:27 - College campus addresses trigger AI false positive flags41:10 - Buy online pickup in store creates major AI confusion44:51 - Shelley's personal Samsung watch auto decline frustration experience46:25 - FedEx address normalization solution for AI street abbreviation issues49:48 - University private mailbox AI detection problems explained51:07 - Drop shipping distributor model creates legitimate transaction red flags🔗 Connect with Gena on LinkedIn: https://www.linkedin.com/in/gena-rivera/🔗 Connect with Jared on LinkedIn: https://www.linkedin.com/in/jaredgruenberg/

Digital wallets are not created equal. In this episode of The Weekly Fraudcast, Vito Petruzzelli and Gena Rivera dissect the explosive spike in digital wallet fraud hitting merchants right now.While Apple Pay’s strict biometric verification keeps fraudsters at bay, Google Pay’s lax provisioning rules have led to a shocking fraud rate on its transactions.Vito and Gena break down how bad actors are rapidly loading stolen credit cards into non-biometric wallets, bypassing legacy fraud detection entirely.They give you the exact tactical playbook for extracting granular provisioning signals and biometric flags from your payment gateways before AI agents and crypto wallets make the problem worse.👇 WHAT WE COVER:🔹 The Digital Wallet Illusion: Why treating Apple Pay and Google Pay equally is a massive operational failure.🔹 The Digital Wallet Fraud Spike: How fraudsters are exploiting non-biometric provisioning to launder stolen cards.🔹 Data Dictionary Demands: How to fight your acquiring bank for the underlying wallet data they are hiding from you.🔹 Future-Proofing: Navigating the emerging risks of cryptocurrency wallets and stable coins.⏳ EPISODE CHAPTERS:00:00 - Intro03:22 - Digital wallet fraud explosion04:12 - Stolen credit cards in Google Pay08:33 - Google Pay fraud rate revealed11:22 - Provisioning signals for fraud detection14:42 - Requesting data from payment providers16:25 - Firearms industry digital wallet restrictions18:06 - Biometric authentication flags for disputes23:18 - Payment provider transparency challenges28:36 - Issuing vs acquiring bank dynamics32:27 - Fighting payment provider pushback strategies36:18 - Cryptocurrency wallet fraud risks40:24 - Google Pay disabled due to fraud42:50 - Data dictionary requests from providers47:44 - Next week Jared G hosts48:53 - VAMP threshold violations breaking news🔗 Connect with Vito on LinkedIn: https://www.linkedin.com/in/vitopetruzzelli/🔗 Connect with Gena on LinkedIn: https://www.linkedin.com/in/gena-rivera/

Fraud teams are accidentally turning into revenue killers. In this episode of The Weekly Fraudcast, Gena, Vito and the Fraudcast community tackle one of the industry's biggest blind spots: rule decay.Almost one in four rule declines are false positives, meaning legacy rules are actively rejecting your best customers.Gena and Vito reveal why any rule older than 90 days is a prime candidate for retirement or major revision.The conversation dives deep into practical solutions, from automated sunset processes to preventing manual review bias, featuring insights from practitioners like Renuka Venkatesan, Matthew Blanchard, and Jessica Flores.👇 WHAT WE COVER:🔹 Rule Expiration: Why every fraud rule needs a 90-day sunset clause.🔹 False Positive Economics: How to calculate the true cost of rejecting good orders.🔹 Daily Auditing: How Renuka Venkatesan monitors rule performance.🔹 Cross-Team Collaboration: Why connecting your fraud and chargeback teams reveals critical blind spots.⏳ EPISODE CHAPTERS:00:00 - Intro02:39 - Ben's TV debut on Yellowstone spinoff05:40 - Signifyd Slack community highlights07:50 - Rule decay overview and key insights09:22 - Rules get old quick problem10:36 - One in four rule declines are false positives11:14 - Most teams lack sunset processes13:07 - 90 day rule expiration recommendation14:27 - Four considerations for rule audits16:56 - Immediate action steps for rule management18:39 - Jessica's rule creation challenges22:32 - Miss Dee's financial institution tracking advice23:14 - Matthew's rule refinement strategies28:16 - Renuka's daily rule monitoring system34:24 - Avoiding bias in manual review38:57 - Knowledge preservation challenges41:37 - Outbound verification call alternatives47:09 - Preston's charge back team insights49:46 - Renuka's broadcast community appreciation52:32 - Final thoughts on rule optimization🔗 Connect with Gena on LinkedIn: https://www.linkedin.com/in/gena-rivera/🔗 Connect with Vito on LinkedIn: https://www.linkedin.com/in/vitopetruzzelli/

Account takeover attacks have surged 40% over the past year, as bad actors increasingly target loyalty points and stored payment methods. In this episode of The Weekly Fraudcast, Vito Petruzzelli and Gena Rivera tackle one of e-commerce's fastest-growing threats.They break down how fraudsters are spinning up typosquatting domains and exploiting accounts that have been dormant for over a year.Vito shares six empirical signals you can use to fingerprint account takeover attempts, including tracking password reset timing and measuring device fingerprint "lie counts".Katarina, Thomas, Deanne, and Shelley also share real-world challenges covering everything from fake police reports to freight forwarding schemes.👇 WHAT WE COVER:🔹 Dormant Account Danger: Why inactive accounts represent 92% of ATO fraud.🔹 The "Lie Count" Metric: How device fingerprinting discrepancies expose deliberate obfuscation.🔹 Tactical Defense: Using pre-discount order amounts and SMS friction to block bad actors.🔹 NPS Manipulation: How fraud rings are gaming customer satisfaction scores to hide their tracks.⏳ EPISODE CHAPTERS:00:00 - Intro02:29 - Account Takeover Fraud Rising 40 Percent05:36 - Loyalty Points and Stored Value Under Attack08:12 - Death of Single Signal Supremacy11:05 - 148 Typosquat Domains Found for One Brand13:45 - 6 Key Signals to Fingerprint ATO17:46 - PayPal Hit Hard by Account Takeovers20:24 - Fake Police Reports and Chargeback Challenges26:29 - Pre Discount Order Amount Strategy29:00 - 80 Orders Per IP During ATO Attacks33:02 - Adding Friction Without Hurting NPS36:23 - Freight Forwarding Address Problems40:52 - Free ATO Analysis Consultation Offer44:00 - Gift Card Fraud Ring Tactics46:02 - Next Week Preview on Gift Cards🔗 Connect with Vito on LinkedIn: https://www.linkedin.com/in/vitopetruzzelli/

Traditional fraud tools are officially failing. In this episode of The Weekly Fraudcast, Gena and Vito dissect a massive fraud ring out of Connecticut that bypassed legacy verification systems entirely. By hijacking an account that had been dormant for 879 days, fraudsters unleashed 11 rapid-fire orders using the exact same credit card.Because the AVS and CVV matched perfectly, rule-based models let the attacks right through.Vito breaks down how behavioral analytics caught what traditional tools missed, highlighting critical signals like device hopping, IP switching, and resale arbitrage patterns.👇 WHAT WE COVER:🔹 The Connecticut Case: Why perfect AVS matches are fraud's best friend.🔹 Behavioral Drift: Spotting the difference between good customers and bad actors switching devices mid-session.🔹 Telegram Intelligence: Using tools like Scope Now to safely investigate the dark web.🔹 Strategic Friction: Why wiping stored payment cards is a highly effective defense.⏳ EPISODE CHAPTERS:00:00 - Intro03:37 - Gratitude and Community Engagement04:01 - Matthew's Conference Speaking Experience08:03 - Connecticut Fraud Ring Discovery09:08 - Behavioral Analytics Over AVS Matching14:29 - Account Takeover and Telegram Channels16:51 - Scope Now for Fraud Investigation23:01 - AVS Limitations and Chargeback Challenges26:37 - Customer Verification Phone Tactics28:41 - 3D Secure Implementation Benefits31:10 - Address Verification System Nuances35:13 - International Orders Without AVS38:33 - Selective Friction Implementation Strategies40:03 - Justin's Travel Updates41:27 - Community Growth and Team Building🔗 Connect with Vito on LinkedIn: https://www.linkedin.com/in/vitopetruzzelli/

While the industry panics about future AI bots, the real threat is draining wallets right now.We are broadcasting live from the floor of the Merchant Risk Council (MRC) 2026 conference in Las Vegas.In this episode, Gena and Vito cut through the hype to address the $86 billion consumer scam crisis that is destroying brand trust before customers even reach your checkout page.It is time to reframe how we think about the manual review queue.Fraud analysts aren't being replaced—they are being upgraded. Vito breaks down how elite fraud leaders are pivoting their teams away from repetitive transactional decisions and turning them into strategic threat intelligence hunters.By using AI tools like Claude to handle the heavy lifting of brand protection, human analysts are freed up to investigate complex false positives and build critical relationships across the business.👇 WHAT WE COVER:🔹 The $86B Crisis: Why consumer scams are your problem, even if they happen off-platform.🔹 The AI Pivot: How to use Claude to automate dark web sweeps, catch typosquatting, and issue takedowns.🔹 The Analyst Upgrade: Reappropriating human talent for strategic thinking rather than manual busywork.⏳ EPISODE CHAPTERS:00:00 - Intro: Live from the Floor of MRC Vegas '2605:15 - The $86 Billion Consumer Scam Crisis12:30 - Why Nobody is Seeing a Wave of AI Agent Traffic Yet21:45 - The Evolution of the Manual Review Queue32:10 - Using Claude for Threat Intelligence & Brand Protection41:20 - Becoming the Ultimate Fraud Educator for Your Network48:20 - Outro: The Next Generation of Risk Teams🔗 Connect with Vito on LinkedIn: https://www.linkedin.com/in/vitopetruzzelli/

Are you tired of hearing that AI bots are going to ruin e-commerce? So are we.In this episode of The Weekly Fraudcast, Vito Petruzzelli sits down with Jonathon Hope, Head of Product at Kasada, to cut through the hype and deliver a pragmatic, actionable guide to preparing for Agentic Commerce. They discuss how to actually see the AI traffic hitting your site and how to differentiate a helpful shopping assistant from a malicious script.The duo explains why you don't have to choose between security and discovery. By implementing smart governance, you can allow AI agents to index your products while keeping your checkout and login endpoints strictly secured. This episode is your blueprint for navigating the future of retail without the panic.Key Takeaways:Visibility First: How to read headers and identify true AI traffic.Smart Governance: Strategies for allowing product discovery while blocking automated account creation or checkout.The Reality Check: Why the transition to full Agentic Commerce is a multi-year evolution, giving you time to prepare.Episode Chapters:00:00 - Intro: Welcome to The Fraudcast04:00 - Introducing Jonathon Hope & The Agentic Commerce Reality07:10 - Identifying AI Agents vs. Spoofed Headers11:20 - Visibility 101: What Even is a Header?18:00 - How AI Traffic Impacts Account Takeovers (ATO)22:30 - The Governance Strategy: Allowing Search vs. Allowing Checkout34:00 - How to Start Controlling Your AI Traffic Today42:10 - Prompt Injection Risks and the Future of AI Browsers46:40 - Outro: You Are the Vanguard of Agentic Commerce🔗 Connect with Vito on LinkedIn: https://www.linkedin.com/in/vitopetruzzelli/🔗 Connect with Jonathon Hope on LinkedIn: https://www.linkedin.com/in/jonathonhope/