Why credit unions should not decline Facebook authorizations

Why credit unions should not decline Facebook authorizations

first_img 13SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr Some credit unions are declining authorization for Facebook payments due to the relatively high number of fraud cases being reported for that merchant category code. But declining these authorizations may have unintended negative consequences on your members. Here’s why.Facebook launched in mid-2015 the ability for its users to send other Facebook users money through the Facebook Messenger app. The source of the money transfer comes from a debit card, and receipt of the money goes to the recipient’s account through his or her debit card (meaning each side of the transactions needs to enroll a debit card with Facebook). As a bonus, iPhone users can add touch ID (fingerprint scan) as an added layer of security. Facebook claims that person-to-person (P2P) payments are wrapped in secure layers and use encrypted connections. Facebook points to its history of processing over 1 million payment transactions per day for game players and advertisers since 2007.While the actual transactions may be secure, Facebook’s P2P is still subject to fraud. Facebook scams have been featured on nightly news. Phishing attacks claiming that someone has sent money, and to click here to get your cash, have been documented by KnowBe4.com, an employee Security Awareness Training program. Account takeover is another threat, according to RSA Security, since Facebook and Messenger use the same login, leaving fraudsters who gain access to a Facebook page the ability to gain access to an enrolled debit card and drain the victim’s bank account (up to the daily limit). An even more nefarious fraud scam involves using Facebook to set up brand-new accounts, connect them to stolen debit cards, and then transfer the money. continue reading »last_img

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