PayPal adds scam detection to payments to friends and family
Paypal has introduced a scam prevention tool for Paypal and Venmo friends and family payments.
“The aim is to proactively alert customers of potential scams and prevent real-time losses, alert interventions when they are sent out before any funds are sent out,” the company said in a press release on Monday (July 21).
“As scams try to force people to send payments that may not qualify for refunds, including scams that originate on social media, we believe putting more information directly into the hands of customers will give them the ability to help them stop stopping scams on track.”
According to this version, the system is designed to provide fraud mitigation and improved user experience. When the system detects a possible scam, an alert appears, sharing information about the possibility of fraud when payment is made.
Alerts can be learned and adapted to scam strategies through artificial intelligence (AI) models to analyze billions of data points and update as patterns change.
“This means our system can detect potential new scams faster, even if we have never seen such a specific scam before,” PayPal said.
PYMNTS intelligence research shows the widespread nature of financial scams. Over the past five years, about 30% of Americans (about 77 million) have lost the scam, created in partnership with the functional space based on “how scammers tailored financial scams to individual consumer vulnerability.”
“This highlights the prevalence of these crimes, with most victims losing over $500 and many suffering greater financial losses,” PYMNTS wrote.
“The report also shows how scams can affect a variety of demographics, including age, education and income.
For example, the possibility that the tide generation and older people are attracted by fake online shopping programs is that these changes in scam susceptibility show how scammers change their approach to different groups based on their needs and circumstances.
The main factor in the increase in scams is that the scammers personalize their approach based on the lifestyle and characteristics of the victim. This personalization makes the scam look more legitimate and harder to detect.
“Considering that 21% of Gen Z consumers report scams initiated through social media platforms, reflecting their massive digital presence,” Pymnts wrote. “Older generations such as baby boomers, who trust more ways to contact them more frequently by email or phone call. Scammers often use channels that are most likely to attract a particular age group to adapt to these preferences.”
