Payments and Fraud Glossary


Machine Learning System

Machine learning fraud detection systems use artificial intelligence solutions to detect ‘acts of fraud’. These techniques fall under two main categories:

  • Supervised learning systems – these systems require training data sets to learn and use techniques like neural networks, bayesian models, regression models, statistical models, or a combination.
  • Unsupervised learning systems – these systems are able to identify potential fraud based on techniques like clustering, peer group analysis, breakpoint analysis, pro ling or a combination.
Mail Order – Telephone Order (MOTO)

MOTO accounts are required when more than 30% of credit cards cannot be physically swiped. Merchants that have a MOTO merchant account usually process credit card payments by entering the credit card information directly into a terminal that contains a keypad, by using terminal software installed on a personal computer, or by using a “virtual” terminal that allows the merchant to use a normal web browser to process transactions on a payment service provider’s website.


A software specifically designed to disrupt or damage a computer system.


A form of internet threat related to man-in-the-middle (MITM); it is a proxy Trojan that infects a web browser by taking the advantage of vulnerabilities in browser security to modify web pages or transaction content, or to insert additional transactions, all in a completely covert fashion invisible to both the user and host web application. A proxy Trojan is a virus which hijacks and turns the host computer into a proxy server, part of a botnet, from which an attacker can stage anonymous activities and attacks.


In cryptography and computer security, it is a form of active eavesdropping in which the attacker makes independent connections with the victims and relays messages between them, making them believe that they are talking directly to each other over a private connection, when in fact the entire conversation is controlled by the attacker.

Manual review

A technique in which merchants use staff members to perform manual checks on orders to determine which orders are fraudulent.

Merchant account

A type of bank account that allows businesses to accept payments in multiple ways, typically debit or credit cards. A merchant account is established under an agreement between an acceptor and a merchant acquiring bank for the settlement of payment card transactions.

Mobile Device Analysis

Technologies that can help identify the specific mobile device type that is being used to complete a purchase as well as attributes of that specific device (operating system and version, browser type)

Money laundering

The process of concealing the source of money obtained by illicit means. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount of money laundered, either worldwide or within their national economy.

Multi-factor authentication

An approach to security authentication, which requires that the user of a system provide more than one form of verification in order to prove their identity and gain access to the system. Multi-factor authentication takes advantage of a combination of several factors of authentication; three major factors include verification by something a user knows (such as a password), something the user has (such as a smart card or a security token), and something the user is (such as the use of biometrics).