Finance & Banking , Fraud Management & Cybercrime , Fraud Risk Management

SMBs Face Growing Threat of Triangulation Fraud

Visa's Mike Lemberger on Latest Digital Fraud Tactics Hitting the SMB Space
Mike Lemberger, senior vice president and regional risk officer, North American Region, Visa

As digital transformation grows, small and medium businesses increasingly face threats from triangulation fraud, in which fraudulent merchants appear and act as real merchants. Offers made by these fake merchants are often too good to miss, said Mike Lemberger, senior vice president and regional risk officer at Visa's North American Region.

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"They're trying to sell goods and services on the network itself, and it falls into the 'too good to be true' space where they're selling. Maybe a phone that you want to buy costs $1,000, and they would sell it for $600," Lemberger said.

Behind the scenes, however, a fraudulent merchant has used a stolen card to buy a legitimate phone with a fraudulent set of payment credentials. "The phone arrives at your home. You feel great. They take your $600. They put it in their pockets."

In this video interview with Information Security Media Group, Lemberger discussed:

  • The new types of digital fraud in the SMB space;
  • Ways to combat triangulation fraud;
  • Visa's role in combating SMB fraud.

Lemberger has 25 years of experience in product development and database design in the continually evolving world of payments and risk.

About the Author

Suparna Goswami

Suparna Goswami

Associate Editor, ISMG

Goswami has more than 10 years of experience in the field of journalism. She has covered a variety of beats including global macro economy, fintech, startups and other business trends. Before joining ISMG, she contributed for Forbes Asia, where she wrote about the Indian startup ecosystem. She has also worked with UK-based International Finance Magazine and leading Indian newspapers, such as DNA and Times of India.

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