SOURCE: ControlScan, Inc.

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March 17, 2015 09:00 ET

ControlScan Helps Shed Light on Emerging Threat of Transaction Laundering in E-Commerce

TRANSACT 15 Session Assembles Payments Stakeholders to Share Concerns, Recommendations

ATLANTA, GA--(Marketwired - March 17, 2015) - ControlScan, a security and compliance partner to hundreds of merchant service providers representing millions of small and mid-sized businesses (SMBs), announced today that CEO Joan Herbig will lead a panel discussion on the emerging threat of transaction laundering at the payments industry's upcoming TRANSACT 15 event in San Francisco.

In the e-commerce space, transaction laundering is the act of funneling payment transactions from an undisclosed website to a known site. Transaction laundering has become a common means by which to mask prohibited, brand damaging online sales of illegal pharmaceuticals, counterfeit products, illicit pornography, unlicensed gambling and more. Because traditional monitoring technologies cannot detect the undisclosed websites that provide fertile ground for transaction laundering, ISOs, acquirers and payment facilitators remain exposed to merchant fraud as well as significant card-brand penalties.

"For many years, the merchant's registered website was the source of brand-damaging activity, but today's threat is coming from online sites that operate in secret behind legitimate sites, unbeknownst to the merchant service provider," said ControlScan's Herbig. "ControlScan is now routinely uncovering transaction laundering risk in our partners' online merchant portfolios, indicating that this issue is a sleeping giant for the acquiring community.

"Online fraud constantly evolves and transaction laundering is an all-new problem," Herbig continued. "In fact, when we began talking with our partners and industry colleagues about it, we used the term 'undisclosed aggregation' to describe the way payments are sent from one or more unknown sites to a single, known site for aggregated processing. But 'transaction laundering' is a more fitting term, because 'aggregation' is a legitimate payments model and many SMBs rely upon above-board payment aggregators to quickly and cost-effectively accept credit card payments."

The "Undisclosed Aggregation: What You Don't Know Will Hurt You" panel discussion will take place at 9 a.m. PDT on Tuesday, March 31 at the Moscone Center in San Francisco. Several notable payments industry executives will join Herbig to share their insights on the transaction laundering issue.

About ControlScan 
Headquartered in Atlanta, ControlScan delivers unified security and compliance solutions that help small and mid-sized businesses secure sensitive data and comply with information security and privacy standards. We support business owners, franchisees and merchant service providers with technology, services and expertise for PCI DSS, HIPAA and EI3PA compliance; vulnerability detection and risk mitigation; POS, e-commerce and mobile security; and more. For more information, please visit ControlScan.com or call 800-825-3301.

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Contact Information

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    Stacey Holleran
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    678-279-2645
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