How to Find Hidden Fraud with Momentum Analysis
Target Audience
This presentation targets fraud prevention, chargebacks and payments professionals in engineering, fraud ops and finance
Presentation Technical Level
Intermediate - The next step beyond the basics. For attendees with some industry experience.
Summary of Topic
Losses in payments generally come from two types of chargebacks, fraud and friendly-fraud. While fraudulent chargebacks are associated with intentional crime, friendly fraud comes from consumers who charge back to avoid paying for goods and services they find unsatisfactory. These two types of chargebacks are difficult to distinguish because, in practice, processors generally use the same codes for both types of chargebacks. This talk will describe a case study at online ticketing provider Eventbrite, where we analyze chargebacks to classify them as fraud vs. friendly fraud. We use a form of velocity analysis that is inspired by the concept of "momentum" from the field of physics. This type of analysis can help payments teams identify hard fraud among chargebacks previously identified as friendly fraud.
Audience Takeaway
The audience will take away tools to help minimize losses in payments. Specifically, the audience will learn about the different roles fraud and “friendly fraud” play in minimizing losses. Audience members will be able to benefit from a case study that demonstrates how to identify chargebacks associated with fraud hiding among “friendly fraud” chargebacks. This case study demonstrates how use to use Momentum Analysis to more effectively prevent losses.
Submitters
Presenters
Pat Poels, Eventbrite
Title
Presenter Biography
Pat has over 20 years of experience in e-commerce, event ticketing, and software engineering. He is currently the Director of Data Engineering at Eventbrite, a self-service ticketing platform, where he leads the Fraud/Risk, Data Discovery, and Business Analytics teams. Prior to Eventbrite, Pat was Vice President of Software Development for Ticketmaster, one of the world's largest e-commerce transaction companies. At Ticketmaster, Pat was responsible for host system development, where he engineered numerous innovations in the live event ticketing industry. Pat was responsible for creation and implementation of Ticketmaster's ticket barcoding algorithm, the backbone of their secure access control system.
Pat has recently returned to the software engineering after pursuing his passion for poker. In his five year professional poker career, Pat accumulated over 1 million dollars in tournament poker prize money, and is one of a select few poker professionals to have won multiple World Series of Poker bracelets.