Recently, professional cybercriminals have specifically targeting direct selling companies and their customers. The damage these criminals can inflict for unwary and unprepared companies can be truly catastrophic.

How Direct Selling Fraud Works
It all starts with stolen credit card information, which can be obtained through an illegal marketplace for between $5-$15 each. Amateur fraudsters often attempt to use the credit card information of family members, friends or co-workers for direct selling fraud, but typically on a much smaller scale.

The pros use this information to attack direct selling companies in a very systematic, calculated manner. They begin by enrolling as distributors, often directly through the direct selling company’s corporate website as an “orphan”, unaffiliated with an existing company sponsor. This opens up access to purchase products and become eligible for sales commissions.

Using their status as a new distributor, they enroll other fake distributors providing what appears to be more legitimate, sanctioned entry to the business for those that follow them. All these new distributors begin by purchasing significant amounts of product, using illegal credit card information, shipping it to temporary addresses at vacant homes, mailbox locations or other locations. In some cases, this product is quickly whisked away to secret locations for storage and are posted for sale on various discount, classified websites at extremely heavy discounts.

Even without a single sale of this ill-gotten product, these fake distributors are often paid sales commissions on the fake sakes long before there is any detection of wrong-doing. Add to that the money made from any product they are able to sell and it’s clear to see how this type of criminal could do significant damage to an organization not prepared for this style of sophisticated criminal. Add on the impact of flooding the market with heavily discounted product, reputation damage and difficulty differentiating between incredibly valuable, legitimate distributors and illegal operators and now the problem is even more massive.

ProPay Can Help
Through ProPay Guardian CyberShield, there is a way to go after this more insidious style of criminal. Guardian CyberShield uses a variety of mechanisms to identify the bad guys and stop them before they can get started. The service uses a Device ID feature that can detect when multiple accounts are created or managed from a single device, creating alerts and preventing entry when appropriate.

ProPay Guardian CyberShield also features a highly sophisticated, and customizable rules engine that can be adjusted to the unique needs of the direct selling industry. This feature could be used to develop rules around establishing orphan accounts, shipping product to unverified new distributors or creating other complex validation or authentication mechanisms. Designed to be customized and built as a more advanced fraud prevention solution, Guardian CyberShield can be an essential tool in the direct selling battle against the new wave of fraud.

Learn more about ProPay Guardian CyberShield. Visit www.propay.com or call 888.227.9856.

The recently published ThreatMetrix Cybercrime Report details how massive, complex and dynamic digital and transaction fraud has become. The report is filled with incredible statistics and information about the scale and shape of modern fraud, a few highlights include:

- A startling 250% increase in cyber attacks on retailers during peak transaction times
- Over 230 million bot attacks
- An overall 80% increase in attacks over the previous year
- Aggressive attacks on both mobile and desktop environments
- Financial services, retail and a variety of industries targeted

The big takeaway from the report is that the modern cybercriminal is incredibly sophisticated, aggressive and a force to be reckoned with. To protect your business and your customers from these fraudsters requires an intelligent and even more sophisticated fraud detection and prevention solution. Mapping the right solution requires a deeper understanding of the dynamic of today’s cybercrime.

Fraud doesn’t sleep – Fraud, and fraud protection is not a static or periodic event. Fraudsters are continually testing, probing, automating their tools to find and exploit any potential weakness. Bots and Botnets, automated processes and networks of automated inquiries run constantly looking for security openings. Protecting your business from this type of dynamic threat requires a solution that operates in the same model, continuously sweeping the landscape, looking for patterns, identifying known risks and constantly countering attacks.

Every device is at risk – Mobile commerce continues to grow as a channel for everything from consumer products to home mortgages. Cybercriminals are aggressive, and quite successful infecting mobile devices with malware through downloaded apps that may look legitimate, but carry dangerous, invasive code. Mobile devices are also frequently compromised through unsecured wireless networks allowing undetected access to sensitive personal data. Desktop computing is still a risk as well, criminals utilize a number of tactics to access user information and hard drives of desktop computers on a massive scale.

Multiple attack vectors – Cybercriminals use stolen payment information for purchases, pretend to be known users and commit fraudulent activity and create new accounts using stolen information. Attacks to access this information come in many forms, malware, networks of compromised devices working together and a host of other tactics. There are many fronts to monitor and protect.

Connecting the stolen dots – The modern cybercriminal is rarely acting alone and is increasingly elevating the complexity of their attacks by combining data obtained through multiple sources. Rather than accessing all your personal information through a single compromise, they are able to stitch together a composite view of consumers through a combination of more easily accessible information. Developing an awareness of criminals with this approach and then finding and preventing the related fraud requires an extremely high level of sophistication.

The good news is that ProPay Guardian CyberShield is designed to protect business and consumers in this fluid, complex and rapidly changing environment. Featuring world-class technology, in-depth security and unmatched fraud protection expertise your business can be confident even in a world with a growing and ever more dangerous style of cybercrime.

Click here to learn more about ProPay Guardian CyberShield. Call 888.227.9856 or email sales@propay.com.

According to the The Global Fraud Attack Index™, fraud attacks are up an incredible 163%. Fraud as a percentage of revenue for online merchants has increased 94% year over year (2014 to 2015). The velocity and intensity of fraud attacks on businesses of all sizes is increasing at an alarming rate. Businesses large and small must be aware of, and prepared for this new, and very real, threat.

These attacks are being committed by very sophisticated professionals who understand the infrastructures and vulnerabilities of consumers. Many of these attacks and related fraud comes through activities such as:

Account takeover – Claiming to be the actual users, fraudsters take over existing accounts to purchase goods, transfer funds and do other harmful and costly activities under the guise of the legitimate account user. These kinds of attacks can be especially painful given the activity looks like that of a legitimate user, leading to difficult processes for the person or business with the compromised account as well as the businesses impacted by the actions of the criminals involved.

New account fraud – New accounts are established using false or stolen identities which are then used again to make unauthorized purchases or as a foundation for other illegal transactions.

Payment fraud – Payment fraud is most commonly committed with stolen credit card information. In the right hands, stolen credit card information can be extremely damaging to the individual, businesses that accept the payment information for purchases and of course ultimately the financial institutions behind the scenes.

ProPay Guardian CyberShield offers protection in multiple dimensions from the threats and fraud tactics mentioned above. The service can identify suspicious login requests, discover malware that may have infiltrated a user’s device and detect access attempts from risky or compromised devices. The technology can find users hiding behind proxies or disguising their true location, single devices creating a high volume of new accounts and detect computer-generated names, emails and botnets.

ProPay Guardian CyberShield can help prevent payment fraud by accessing a network of billions of historic payments and searching for known malicious devices and IP addresses. Advanced features allow the service to evaluate every transaction, detect malware, identify mismatched credit cards, locations and devices.

Today’s cybercriminals are intelligent, persistent and highly advanced. As a business and a consumer you need a partner even more sophisticated. ProPay is that partner and ProPay Guardian Cybershield is the solution.

Learn more about how the ProPay Guardian CyberShield can help your business. Call 888.227.9856 or visit www.propay.com.

The ability to accept a variety of electronic payment types is absolutely essential for your business. Consumers now expect the seamless experience of efficient electronic payments. ProPay makes it easy to get paid in as many as 10 different ways and offers some of the lowest merchant account rates in the industry.

The payment services alone are compelling, but during the month of March ProPay is giving away $1,000 in MasterCard Gift Cards for customers signing up for new ProPay Merchant Accounts. Simply sign up for a new account and you will be automatically entered into a random drawing to win one of four $250 MasterCard Gift Cards.

Make it easy to get paid, provide customers with the ease and convenience of many different payment methods and give yourself a chance to win a little extra for yourself.

Click here to learn more.

ProPay has always been a direct selling industry leader and innovator offering services designed for the unique needs of a rapidly changing and progressive industry. One of the fundamental challenges within the direct selling world is the improving the speed and efficiency of fund movement between companies, distributors and customers. The ProPay Payment Network provides an amazing solution to this complex issue.

Distributors are understandably anxious to receive bonuses and commission payments not wanting to wait any longer than necessary for hard-earned compensation. Direct selling organizations want to support and encourage their valuable distributors while at the same time maximizing the efficiency of their business operation. ProPay Payment Network allows direct selling organizations to quickly move funds from a corporate account directly to distributor accounts in the form of commission or bonus payments or funds that can be spent immediately on the purchase of additional products through a the SpendBack product.

Funds can also be divided or “split” at the time of transaction using the SplitPay product and can be distributed in real-time with consumer transactions concurrently being paid to corporate accounts for the wholesale cost of products and bonus or commission fees can be sent to the distributor. All this is completely seamless to the consumer and happens on the secure, safe ProPay transaction platform.

Recruiting, activating and retaining high quality distributors can be a challenge. High caliber distributors expect not only quality, differentiated products to offer to consumers but also high-touch, reliable and consistent operational support. Failure to provide a solid back office experience can jeopardize critical distributor relationships so essential to grow a healthy direct selling business.

Consumers expect reliable, secure transaction capabilities and distributors continue to have elevated expectations of their corporate partners. The ProPay Payment Network provides the technology, services and experience to improve the lives of consumers, distributors and direct selling organizations. Learn more about how the ProPay Payment Network can help your business. Call 888.227.9856 or visit www.propay.com.

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