A payout, or a disbursement, is a payment made from a platform to a supplier on that platform. Examples include:
Payout fraud occurs when suppliers in marketplaces and online platforms manipulate the system to create fake revenue. They might commit money laundering, sidestep financial regulations, form fraudulent networks with other suppliers, bypass Know Your Customer (KYC) checks, and ultimately harm your business financially and legally.
We aim to curb payout fraud by analysing each payout before it’s processed. By producing a recommendation, we guide you on whether to proceed with a particular transaction.
To do this, we ask you to send us details about each payout attempt via our API.
Our recommendations are generated using a combination of methods including:
Ravelin continuously monitors the performance of rules and recommendations and suggests any improvements.
Our payout fraud recommendations can be used in combination with other Ravelin products to help prevent wider fraud.
Some fraudsters might use stolen cards for purchases on platforms where they’re also sellers, facilitating a legitimate transfer of illicit funds to their accounts.
Supplier fraud occurs when suppliers abuse policies or fraudsters pose as genuine sellers to illegitimately enrich themselves. Common tactics include creating fake customer accounts, hijacking genuine orders, inflating fees by faking or cancelling orders, and collaborating with fraudulent customers to use stolen cards for payment fraud.
Misuse of promotional campaigns is another tactic. Fraudsters might leverage these to inflate their revenue without genuine sales.
Payout recommendations must be enabled on your account before they can be used. Please speak to your account manager about enabling payout recommendations.
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