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Insights and Expertise

lead to regulatory or card brand fines, reputational dam- combine AI, big data analytics and human expertise
age and operational disruptions, underscoring the im- to identify risks in real-time, mitigating potential
portance of robust merchant monitoring and compliance violations or reputational crises.
practices.
3. Stakeholder education: Educating stakeholders—
To address these growing risks, payment platforms and from internal teams to advertisers and consumers—
FIs should adopt a proactive strategy focused on the fol- is essential to creating a resilient payments ecosys-
lowing points: tem. Consumers need to understand the dangers of
counterfeit drugs, while internal teams must stay in-
1. Healthcare merchant certification: Healthcare formed about fraud tactics and regulatory updates.
certification is central to onboarding healthcare- Clear guidelines and awareness initiatives empower
related merchants, as payment companies must all parties to recognize and address risks effectively.
ensure merchants comply with jurisdictional laws
and card network rules. By carefully vetting busi- The fight against fraudulent online pharmacies and tele-
ness practices through expert, third-party certifying health providers requires a unified effort. By prioritizing
bodies, FIs can prevent the onboarding of noncom- certification, leveraging advanced monitoring tools and
pliant merchants, protecting consumer safety and fostering education, FIs become integral to safeguarding
operational integrity. consumer health, preserving trust and securing the pay-
ments ecosystem.
2. Continuous monitoring: Robust underwriting is
insufficient to maintain a healthy merchant port- Tom Cook is chief Product & technology officer at LegitScript, where he
folio, and transaction monitoring has its limita- leads product and engineering teams to build innovative solutions to
tions for identifying threats. FIs should leverage a help clients comply with regulations and combat fraud. Connect with
third-party merchant monitoring solution, which Tom on LinkedIn: https://www.linkedin.com/in/tomcookoregon/.
continuously monitors a merchant's storefront and
wider internet presence. The best of these solutions

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