Shopify is launching stablecoin payments for its merchants later this year, starting with USDC in collaboration with Coinbase and Stripe. Fortune reports: The publicly traded tech company lets merchants -- including vintage clothes sellers, cosmetics businesses, and electronics companies -- set up their own online marketplaces. By late June, Shopify will let a select group of users accept payments in USDC, a stablecoin issued by the crypto company Circle, which recently had one of the year's hottest IPOs. "In our own philosophical framework, we are extremely aligned with everything that crypto stands for," Tobias Lutke, the CEO of Shopify and a Coinbase board member, said onstage at a Coinbase conference on Thursday.

Shopify will then gradually expand access to merchants across its network in the U.S. and Europe before opening up stablecoin payments to every merchant who uses its platform. The e-commerce company worked with Coinbase to develop a payments protocol to handle chargebacks, refunds, and other intricacies of retail payments on Coinbase's blockchain, Base. It also collaborated with fintech giant Stripe, one of Shopify's payments processors, to integrate stablecoins into the e-commerce company's existing software stack. "I think other payment processors will look at what Shopify is building and be like, 'Holy crap,'" Jesse Pollak, a Coinbase executive who oversees the crypto exchange's wallet and blockchain divisions, told Fortune.

Credit card disputes at Visa continued rising past their pandemic boom despite the proliferation of prevention software, as fraud grows alongside e-commerce and inflation. From a report: Disputes on Visa's network rose to more than 90 million in 2022, data provided by the payment company showed. More than 70 million disputes were filed in 2019, Visa said in a presentation, before rising 24% in 2020 during the pandemic and about 2% a year in 2021 and 2022.

Despite being easy for consumers to file, making it one of the most-common credit card frauds, disputes are an opaque part of the payments industry. Both Mastercard Inc. and American Express declined to provide disputes data. Visa and Mastercard both bought dispute prevention companies in 2019, Verifi and Ethoca, respectively, and regularly promote their offerings at conferences. Disputes can be costly and onerous for both credit card companies and merchants to process, while chargebacks, when a dispute results in a refund, cost merchants dearly -- about $2.40 for every dollar disputed, according to Visa's Verifi, or as high as $3.36 for every dollar, according to Mastercard's Ethoca.

An anonymous reader quotes a report from Ars Technica: An Ohio man created a fake broadband provider in order to scam low-income consumers who thought they were getting government-funded discounts on Internet service and devices, according to the Federal Communications Commission. In a Notice of Apparent Liability for Forfeiture released Friday, the FCC proposed a fine of $220,210 against alleged scammer Kyle Traxler. Traxler created an entity called Cleo Communications that sought authorization to be a provider in the FCC's Emergency Broadband Benefit (EBB) program, which provided $50 monthly discounts on Internet service and discounts for devices. "Cleo apparently existed for the sole purpose of taking financial advantage of customers under the disguise of being a legitimate EBB Program provider," the FCC notice said. "Cleo Communications has had no business activity outside of the EBB Program and no other business purpose."

The FCC began investigating after receiving complaints from consumers in at least eight states who ordered devices and/or "hotspot service." In some cases, consumers said that Cleo threatened to sue them after they asked for refunds for items and service they didn't receive. Cleo's terms of service stated that it never issues refunds and that attempting to get refunds via bank chargebacks is a "breach of contract," according to the FCC. The FCC said it got no response to a subpoena it issued to Traxler and Cleo in December 2021. The now-discontinued EBB program and its replacement, the $30-per-month Affordable Connectivity Program, have provided money directly to participating broadband providers that offer monthly discounts. Some forms of telecom fraud involve the use of fictitious, ineligible, or duplicate customers to obtain payments from FCC programs, but the FCC said Traxler instead scammed consumers directly...

quonset writes: "The Korean Fusion Cafe 'Spoon by H' had the ingredients to become an L.A. success story but is the epitome of a small business, with owner and chef Yoonjin Hwang working 15-hour days to run the restaurant with her mother and brother," reports CBS News. "'We have no staff. We have no cooks. I have to do everything by myself,' said Hwang. 'Like so many other small businesses we were hit hard by the pandemic. All we could do was just like take it day by day and do whatever we could to stay afloat.'" One day she received an order for $700. The person came in and picked up the order. A week later the same person disputed the charge. Hwang had to pay back the money, and this same situation kept occurring time and again. Hwang was the victim of "friendly fraud" or "chargebacks."

"In the scam, a customer orders food, often through a delivery service, then receives their meal, but disputes the charge with their credit card company to get a refund," reports CBS News. "According to the Los Angeles Times, a growing number of the city's restaurants have struggled as scammers take advantage of internet ordering to use fraudulent credit cards or request refunds, claiming they never received part or all of an order." "I just felt so incredibly helpless and frustrated. We just couldn't keep running our business like this," Hwang said. As a result, she decided to close the restaurant for good.

Patrons helped raise more than $60,000 on a GoFundMe page, which Hwang plans to use to pay off her debt. She says she may consider opening a new business someday with the earnings, but she doesn't know when, or what type of business.

Equifax said Friday that it has signed a deal to acquire Kount, providers of digital identity and fraud prevention software, for $640 million. Equifax said it plans to use Kount's technology to bolster its footprint in digital identity and fraud prevention market. ZDNet reports: Kount's software relies on artificial intelligence to link trust and fraud data signals from billions of digital interactions, devices, and annual transactions. The signals are collected and combined with Kount's AI-driven predictive insights to help businesses prevent digital fraud and protect against account takeovers in real time. Applied to business transactions, Equifax posits that Kount's technology can help facilitate faster and more accurate identity trust decisions, including payments, account creations and login, while also reducing fraud, chargebacks, false positives, and manual reviews. The full suite of Kount products will be integrated into the Equifax Luminate fraud platform, which aims to help manage fraud decisions across the consumer account lifecycle.

Small video games studios are asking the public to stop buying their titles from "unauthorised" markets, saying the sales cost them more than they earn. From a report: Several have said it would even be better if consumers pirated their games rather than purchased discounted unlock codes from the "key resellers." One label is running a petition calling on the biggest such market -- G2A -- to halt sales of indie games outright. But G2A has defended its business model. It said the indies benefited from its policy of sharing a cut of sales made by third parties. "Hundreds of developers earn money from selling their keys through marketplaces such as G2A," head of communications Maciej Kuc told BBC News.

"We don't plan on taking away that possibility anytime soon, as it would be hurtful not only to our customers but also to the many developers who use our platform to their benefit." He added that G2A already took measures to tackle illegal sales. And he said developers were partly responsible for some of the scams on its site because of the "thousands of free keys" they had created for giveaways. The campaign's organiser, however, has dismissed this defence. "They are harming our industry and the value of our games," Mike Rose, from the Manchester-based publisher No More Robots, told BBC News.

schwit1 writes: Nearly everything we buy, how we buy, and where we're buying from is secretly fed into AI-powered verification services that help companies guard against credit-card and other forms of fraud, according to the Wall Street Journal.

More than 16,000 signals are analyzed by a service called Sift, which generates a "Sift score" ranging from 1 to 100. The score is used to flag devices, credit cards and accounts that a vendor may want to block based on a person or entity's overall "trustworthiness" score, according to a company spokeswoman.

From the Sift website: "Each time we get an event be it a page view or an API event we extract features related to those events and compute the Sift Score. These features are then weighed based on fraud we've seen both on your site and within our global network, and determine a user's Score. There are features that can negatively impact a Score as well as ones which have a positive impact."

The system is similar to a credit score except there's no way to find out your own Sift score.

Factors which contribute to one's Sift score (per the WSJ):

• Is the account new?
• Are there are a lot of digits at the end of an email address?
• Is the transaction coming from an IP address that's unusual for your account?
• Is the transaction coming from a region where there are a lot of hackers, such as China, Russia or Eastern Europe?
• Is the transaction coming from an anonymization network?
• Is the transaction happening at an odd time of day?
• Has the credit card being used had chargebacks associated with it?
• Is the browser different from what you typically use?
• Is the device different from what you typically use?
• Is the cadence of the way you typed out your password typical for you? (tracked by some advanced systems)

benrothke writes There are really two stories within Spam Nation: The Inside Story of Organized Cybercrime-from Global Epidemic to Your Front Door. The first is how Brian Krebs uncovered the Russian cybergangs that sent trillions of spam emails for years. As interesting and compelling as that part of the story is; the second storyline is much more surprising and fascinating. Brian Krebs is one of the premier cybersecurity journalists. From 1995 to 2009, he was a reporter for The Washington Post, where he covered Internet security, technology policy, cybercrime and privacy issues. When Krebs presented the Post with his story about the Russian spammers, rather than run with it, the Post lawyers got in the way and were terrified of being sued for libel by the Russians. Many of the stories Krebs ran took months to get approval and many were rejected. It was the extreme reticence by the Post to deal with the issue that ultimately led Krebs to leave the paper. Before Krebs wrote this interesting book and did his groundbreaking research, it was clear that there were bad guys abroad spamming American's with countless emails for pharmaceuticals which led to a global spam problem. Read below for the rest of Ben's review.

Raystonn (1463901) writes "Toshiba has announced the integration of Bitcoin support in their touch-screen point-of-sale platform, VisualTouch, used by over 6,000 merchants. The merchants will now be able to accept Bitcoin payments at the register from anyone with a smartphone or any other QR code reader. Acceptance of Bitcoin as a payment method frees merchants from worries of fraudulent chargebacks, as Bitcoin payments are non-reversible just like cash, while allowing settlement deposits in any of 9 currencies, including USD and Bitcoin."

theodp writes "In a move that would do Bill Lumbergh (YouTube homage) proud, Microsoft has been pulling in about $25 million a year through its unusual practice of charging its vendors for occupying office space on its campus while working on Microsoft projects, according to the real estate firm that manages the program. And that's before a planned July 1st rate increase that Microsoft informed vendors of earlier this week, which will boost the 'chargeback' rate for its 'shadow workforce' from $450 per month ($5,400 per year) for every workstation to $510 per month (or $6,120 per year). So, is there a discount if you're moved downstairs into Storage B?"

hey! writes "On February 18 of this year, global giant payment processor PayPal sent eBook publisher Smashwords an ultimatum: if Smashwords didn't remove all eBooks with certain erotic content from its catalog in the next several days, PayPal would immediately stop handling payments. Smashword's TOS already precluded child pornography, but now PayPal wants them to also censor depictions of consenting, non-related adults acting out incest fantasies. Likewise, fantasy novels in which human characters transform into non-humans are affected if those characters have sex. ZDNet has a summary of the impact of these changes, which would among other things ban Vladmir Nabokov's Lolita. As outrage mounts, finger pointing is in full swing. Smashwords blames PayPal, and PayPal blames the banks it deals with. The crux seems to be that erotica buyers have a higher rate of 'chargebacks' — customers who buy stuff then demand their money back. Fair enough, but is a customer really more likely to return a book because it depicts one kind of fantasy between consenting adults vs. another? Perhaps the problem is just the quality of writing." Note: as you can probably tell from the summary, the linked articles (while factual in nature) discuss subjects that may not be suitable for workplace reading.

krebsonsecurity writes "Merchant banks that process credit card payments for fake antivirus or 'scareware' exhibit a distinctive pattern of card processing that could be used by Visa and MasterCard to weed out the rogue processors, according to a new study by the University of California, Santa Barbara. From the study: 'The UCSB team found that the fake AV operations sought to maximize profits by altering their refunds according to the chargebacks reported against them, and by refunding just enough to remain below a payment processor's chargeback limits. Whenever the rate of chargebacks increased, the miscreants would begin issuing more refunds. When the rate of chargebacks subsided, the miscreants would again withhold refunds.' The study also highlights how few customers ever request a refund, and how affiliates pushing this junk software made more than $133 million."

theodp writes "Chargebacks on computing resources are certainly nothing new, dating to the '60s. But five decades later, the USPTO has deemed Amazon CEO Jeff Bezos' invention — Dynamic Pricing of Web Services Utilization — worthy of a new patent. From the patent: 'Utilization of a storage resource may be measured in terms of a quantity of data stored (e.g., bytes, megabytes (MB), gigabytes (GB), etc.) per unit of time (e.g., second, day, month, etc.). Similarly, communication bandwidth utilization may be measured in terms of a quantity of data transmitted per unit of time (e.g., megabits per second). Processing resource utilization may be measured as an aggregate number of units of processing effort (e.g., central processing unit (CPU) cycles, transactions, etc.) utilized, or as a rate of processing effort utilization per unit of time (e.g., CPU cycles or transactions per second).' Sound familiar, Greyglers? Another example of why it's not wise to grant software patents when people don't know much about computer history."