Card Fraud

Hi All,

I'll share more detail at the top of our next Monthly Meeting, but given the volume we're already seeing since launch of this net-new platform/government program, I wanted to get ahead of it now so we can make the experience smoother for the ~35 million eligible U.S. families. This program is lead by U.S. Treasury, with BNY as the sponsoring bank and Robinhood as platform custodian. 

Background

Robinhood is acting as a custodian/provider for Trump Accounts, the federal investment account program for children established under Invest America Act Background and enrollment info:

• Official program site: trumpaccounts.gov
• Informational resource: investamerica.org
• Treasury announcement: home.treasury.gov/news/press-releases/sb0554

What this means for fraud ops

Because Robinhood is the custodian, we're seeing a significant engagement and transactions volume with this net new program. There are two specific Card Transactions you will see:

• AFT's Debit Card only Deposits, MCC 6211, Statement Descriptor TRUMP ACCOUNT DEPOSIT
  • We will not be support withdrawals
• Debit Card Gifting (external) Checkouts, MCC 6211, Statement Descriptor TRUMP ACCOUNT DEPOSIT

Additional Details:

• There is a limit of deposit contributions of $5K per child, per account. 
• We are requiring 3DS at every card transaction if supported
• We will provide complete AFT details as required by the Card Networks i.e. Sender/Receiver details
  
  
  Based on the initial transaction volume we are seeing some issuers with heavy risk scoring or limiting debit card velocity for this program - specifically:

1. Outright declines on these transactions
2. Do Not Honor declines after initial deposits
3. Velocity flags, since many small, similar-looking contributions in short succession look like structuring even though they're normal program behavior

The ask

We're requesting a increase to velocity thresholds/dollar thresholds and removal of any outright restrictions for these transactions while this new program continues to rollout. Remember this is a government program supporting 35 Million US Families and their future financial wealth.

I'll walk through more details in our next call.  In the meantime, if you're seeing a spike in declines/flags that match this pattern and need more details, please feel free to reach out to me directly.

Michael A. Silver, CFE | Cell (650) 313-9610

Robinhood Markets, Inc
CTS Platforms Strategic Partnerships & Detection and Prevention Lead

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Michael Silver
Fraud Detection and Prevention Lead
Robinhood Markets, Inc
Westlake TX
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Sure, more details are on the links I provided. The investments are like an IRA. Contributions deposits are supported only, that are then put into a specific fund. 

The funds  will be made available to the minor at age of maturity. 

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Michael Silver
Fraud Detection and Prevention Lead
Robinhood Markets, Inc
Westlake TX
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