“Companies need to report brand fraud in a way that responders can consume it quickly because minutes count in these situations,” Adams says. To that end, PayPal is testing a specialized fraud reporting queue it has set up with a half dozen social media sites.
Fraud tipsters provide documentation about the suspected fraud in a standard format, and it is submitted by PayPal to the social media platforms. “We’ve been able to see a significant decrease in the amount of time it takes from the time we identify the problem to the time we report it, to the time action is taken,” Adams says. In one recent month, the expedited channel was 75 percent faster than reporting through the standard channel, he adds.
Adams says the reporting queue project is in the in the early prototype phase, and once it is proven successful PayPal plans to share the process or technical specifications with the world as open source.
Preventing social media brand fraud will remain a challenge because of the generative nature of social media platforms and the proliferation of new and more creative scams, Adams says. While these measures won’t stop this kind of abuse completely, he says, “it will raise the barrier.”
Sign up for CIO Asia eNewsletters.