Transactions on the blockchain are immutable and therefore difficult to reverse. The immutability of transactions on the blockchain makes the chargeback process difficult to navigate in the cryptocurrency space.
A company is working on this problem. Chargebacks911 is working hard to modernize the chargeback and dispute process in the cryptocurrency ecosystem. Coinjournal sat down with founder Monica Eaton to discuss more about how the company is using its platform to address this issue.
Question 1: What is Chargebacks911’s mission statement and how does it work to enable chargeback management in the crypto and web3 ecosystems?
Chargebacks911’s mission is to modernize the dispute and chargeback process. That means simplifying complexity by bridging the gap between traditional infrastructure and post-trade data exchange. We provide data-agnostic solutions that simplify tedious workflows with intelligent and adaptable technology.
Chargebacks911’s platform supports merchants in all industries around the world, including customers in 87 countries, and powers many of the largest financial institutions. Our platform pioneered some of the first crypto companies after launching a digital dispute resolution module in 2020. Like other alternative payment methods that do not have an intrinsic dispute workflow, Chargebacks911’s configurable interface offers a turnkey alternative to crypto platforms and their merchants around the world. .
Question 2: Are there different categories of cryptocurrency scams, such as those that target individuals, businesses, or other entities? Which are the most common and which are the most difficult to detect?
Scammers prefer virtual currencies if the fraud scheme involves them. It’s not regulated in the same way as state currency, so it has vastly different rights of protection and reporting policies. As a result, cryptocurrency scammers can send messages to social media sites, attempt to form false relationships with LinkedIn or Facebook users, or lure victims into fake cryptocurrency investments. , the loophole can be exploited more easily. While many encryption schemes target businesses, many more target individuals. For example, in June 2022 he warned the FBI that cryptocurrency scammers pose a “significant threat” to her LinkedIn users.
Due to the confidentiality and security of cryptocurrencies, there is growing concern that cryptocurrencies may be used for illegal activities. After all, criminals crave anonymity. Unfortunately, an increasing number of ransomware attacks rely on cryptocurrency payments from victims.
Since cryptocurrencies are new, there is a lot of misinformation and false assumptions about how they work. There’s something a little mysterious about it. Scammers take advantage of this confusion to offer cryptocurrency investments that don’t make much sense, but only if you’ve done your due diligence and learned the subject. You are responsible. If you take the scammers at their word, you’re in big trouble.
Question 3: How much did cryptocurrency investors lose on fraudulent projects last year and how can they protect themselves in the future?
In 2022, investors lost an estimated $680 million to crypto scam schemes. And while we sometimes hear about cutting-edge hacking attacks, most scammers rely on “ergonomics” to exploit their victims. Think catfishing over hacking.
To stay safe, don’t invest in anything you don’t understand or thoroughly research, including crypto. It’s a recipe for disaster. There is enough risk and uncertainty in traditional investments. Investing in something without knowing the rules, risks and warning signs makes it very difficult to protect yourself.
The digital currency landscape is still forming. Regulators need to have a foundation in place to protect consumers, much like chargeback processes are today. Without this protection mechanism, cryptocurrencies will continue to face challenges in maintaining sustainable adoption and data integrity. This is perhaps one of the biggest barriers to mainstream growth.
Question 4: Transactions on the blockchain are immutable. In other words, it cannot be undone. Does this mean there will be no need for chargebacks in the crypto space?
Blockchain is a permanent record of transactions in a shared, transparent ledger. Digital information is recorded and distributed within the network, but cannot be edited or changed after the fact. Your ledger is safe and protected. It’s decentralized, so there’s no gatekeeper under your control or a third party that can give you a thumbs up on the scale and break your system.
Without blockchain technology, Bitcoin and cryptocurrencies could not exist. It’s the function that brings the crypto concept to life.
The current chargeback system is widely believed to be unfair to retailers, but without this protection mechanism the e-commerce idea would have been short-lived. Not to mention the transition from cash to cards. Cryptocurrencies have no chargebacks, which many retailers consider very attractive. Remember, however, that consumers feared credit card fraud, so chargeback mechanisms were introduced in 1974 as a consumer protection tool. Will our politicians try to create cryptocurrency chargeback rules in the future? If history repeats itself, time will tell. As it stands today, buyers have little recourse to get their money back if they are scammed or defrauded. This also applies to sellers who exchange virtual currency. The final word on crypto regulation has not yet been written. Policy on this subject requires more collaboration and domain expertise. As the saying goes, every problem presents an opportunity. Stay tuned for details…
Question 5: Last year, FTX and LUNA collapsed, costing both retail and institutional investors billions of dollars. What is your position on governments around the world tightening rules against cryptocurrency companies in the wake of the FTX demise?
Cryptocurrencies are banned in China, Egypt, and several other countries. China is a huge market and denying cryptocurrencies would limit its growth. However, other countries have accepted cryptocurrencies, including Ukraine, which has used cryptocurrency donations to fund its struggle against Russian aggression. Otherwise, it can be used like any other money and redeemed for accepted products and services.
The collapse of FTX has clearly damaged the crypto’s reputation. To be fair or not, it has given cryptocurrencies a surplus and tarnished their standing with the general public. Politicians are often very sensitive to negative PR As such, crypto proponents should expect increased government scrutiny.
Question 6: What would you say to companies looking to integrate anti-fraud technology into their operations?
What is measurable matters. There are many scary things about online scams. But at least it’s something you can measure. This means you can test and see what really helps you make and keep the most money and limit your debt. Instead, have a meaningful “dashboard of metrics” for your specific business model to test the effectiveness of your anti-fraud strategy. Chargebacks911 guarantees a successful and scalable he ROI. Not all companies do.
Question 7: How can Chargebacks911 help businesses prevent fraud and protect consumers and investors?
Our suite of software services dynamically combine modular capabilities, including advanced analytics, AI and machine learning, to work seamlessly behind the scenes to streamline processes and provide rich data feedback. With Chargebacks911, our clients are empowered with greater business intelligence that helps them make significantly better decisions with more effective efforts and achieve their desired outcomes. Chargebacks911 offers technology, data connectivity and services designed to help clients get the most relevant information. Our platform reduces arduous workflows, ensuring timely dispute resolution and the suspension of related ongoing liability. It is my passion to help clients position themselves for long-term, sustainable growth, expanding technology and connectivity to enable them to focus on their core competencies with the confidence of robust back-office automation tools. our passion.
Question 8: Finally, what are the main trends unfolding in the cryptocurrency market during 2023?
Is crypto the currency of the future? Will it evolve into a universally accepted currency surpassing the euro and dollar, or will it remain a niche curiosity of dubious legality?
The strengths of cryptocurrencies, especially their decentralization, independence, privacy and freedom, also make them vulnerable to market volatility and government scrutiny. There are philosophical true believers who believe in it in principle. They are ideologically supportive of the concept and will continue to invest in cryptocurrencies no matter what. But for everyone else who sees cryptocurrencies purely as an investment, it’s unclear what the future holds. may go down. Perhaps it will go up and down again and again until the dust starts to settle and its usefulness is established. Whether it will become a shadow currency remains to be seen.
Why was gold historically so valuable? Why were diamonds coveted? After all, it’s because we want them. Collectively, as a society, we value them. But it’s worth noting that gold and diamonds have non-financial uses. It is not only valuable because it is rare. They are intrinsically valuable. Crypto doesn’t have that. No external utilities.
Even during a devastating economic downturn, gold and diamonds have always had some value. Cryptocurrencies can potentially bottom out and become worthless. This volatility is what makes it an attractive investment. you can make a lot of money. Or you could lose your shirt.
Watch out for inflation. If prices continue to rise, investors may be tempted to move to cryptocurrencies as a way to offset volatile national currencies. This also raises serious cybersecurity concerns. It was a staggering increase in cybercrime. Inexperienced consumers make more mistakes and are more vulnerable to fraud schemes.If millions of inexperienced investors adopt cryptocurrencies, cybercriminals will surely be in sight. It is our responsibility to be ready for the challenge.