Algorithms built to detect credit card fraud can deny charges if they perceive the attempted purchase is unfamiliar or unusual based on historical data, even when a person has enough credit to make the purchase.

Financial institutions check for lots of things before authorizing a purchase

Before authorizing a purchase, card issuers consider whether or not the cardholder has a high enough available credit limit to make the purchase, where the purchase is being made in order to reduce fraud, and more.

Microchips in payment cards improve security by generating unique transaction codes

Magnetic strips store unchanging data that is easily cloned, but microchips act as miniature computers that encrypt sensitive data. They also resist fraud by creating data unique to each transaction, preventing duplication.

AI could be increasing the opportunities for financial fraud

Systems that can reproduce near perfect counterfeits of legitimate financial documents are increasingly prevalent and sophisticated. The international Association of Certified Fraud Examiners estimate organizations lose about 5% of revenue to fraud each year.

Credit monitoring services may oversell the benefits of dark web monitoring

Currently, technology exists to scrape and download data from webpages, which can then be analyzed to identify a user's information. However, scrapers cannot access or remove personal data from dark websites because they are often protected by paywalls, rendering monitoring ineffective beyond reporting publicly available data breaches.

Smart pricing algorithms can unintentionally work together to raise prices

Researchers have found that, through trial and error, algorithms designed to adjust prices based on market data can learn to mimic price-fixing tactics, even without explicit programming to do so. Over time, they "learn" that it is more profitable to avoid price wars and keep prices high when competitors lower prices.

Watch a video that visualizes what really happens inside a credit card network when you make a purchase.

Every tap sets off a lightning-fast relay. When someone buys coffee with their Visa, a tiny "runner" races between the coffee shop's bank, Visa's network, and their bank—all in under a second. The catch? No money has actually moved yet. Here's what really happens behind that instant "Approved."

Gas stations top the list of riskiest places to use a debit card

Unlike credit cards, debit cards withdraw funds directly from your checking account, and federal laws provide fewer consumer protections against debit fraud. Gas station "skimmers" and long periods of separation from the card at restaurants are some of the more vulnerable spots for use.

Generative AI tools excel at pattern recognition, not contextual accuracy

Large language models are trained on vast amounts of unstructured data, from which they develop parameters for grammar and associations between words. These connections can introduce errors due to inapplicable reasoning when used on new data in unfamiliar contexts.

Charge cards are different from credit cards

Unlike credit cards, charge cards often don’t have a preset credit limit, but cardholders need to pay off the entire balance every month.

Some argue that credit reporting promotes economic inequality in the US

Although today's credit scoring system is much more objective than, say, the credit assessment system of the 1700s, some argue there's still room for improvement, with critics saying the current system is still discriminatory. For example, while mortgage payments have long been automatically reported to credit bureaus, rent payments (the primary housing expense for most lower-income Americans) historically haven't been reported unless a payment was missed.

Customers wrote just one check a year in 2024, on average

Major retailers like Target have stopped accepting checks in recent years as real-time payment systems are increasingly being implemented across the US. This shift is considered an improvement in safety—as checks are vulnerable to fraud—but can lead to some exclusion for those without access to digital devices.

Unlike the models made by large AI companies, open-weight models can have their safeguards removed or weakened, a process that has become increasingly easy and may expose users to harmful information.

This removal is made possible by developers making the parameters behind their models publicly known. By adjusting these parameters, users can modify how the model processes and provides information. Many of these models can be downloaded locally, preventing developers from seeing how people are using them.

Machine learning lets computers learn from data instead of relying on programming

ML is a core part of artificial intelligence and is foundational to applications like chatbots, fraud detection, and self-driving cars. Businesses are also adopting it to improve efficiency and identify patterns in data, though the latter may be inaccurate.

Hackers once used 'Fortnite' to clean money from stolen credit cards

Hackers using stolen credit cards would create "Fortnite" accounts and purchase V-bucks, the in-game currency. The hackers would then sell the entire "Fortnite" account on sites like eBay. For instance, an account with $100 worth of stolen V-bucks might sell $25 on eBay.

When you complete a CAPTCHA on a website to prove you are human, you may be unknowingly training algorithms for self-driving cars, whose systems require training data to help identify crosswalks, bicycles, and other outdoor objects.

In 2025, American Express paid $230M to settle fraud and deceptive marketing charges

American Express launched a wire payment service targeted at small businesses and falsely touted the service as a tax-deductible business expense in 2018. American Express was also accused of allowing small businesses to open corporate credit cards without the necessary employer identification number (EIN).

The history of credit cards begins with the 'Fresno Drop.'

On a 1958 morning in Fresno, California, about 60,000 people woke up to find a strange rectangular piece of plastic on their doorstep without explanation. Those chosen for the "Fresno Drop" didn't know it yet, but Bank of America was behind the credit card delivery stunt.

Alternatives to polygraphs, which correctly identify innocent people only 57% of the time

Lie detector polygraphs have been standard in law enforcement for a century despite being based in unproven science. Researchers are exploring brain-scanning and eye-tracking alternatives, though some suggest there's no reliable lie-detection process at all.

Ethereum Founder Vitalik Buterin was surprised by the emergence of NFTs

Scams have pervaded the NFT space and made critics question their legitimacy, but proponents believe their use cases could one day extend to real estate and credit scores.

When you complete a CAPTCHA on a website to prove you are human, you may be unknowingly training algorithms for self-driving cars, whose systems require training data to help identify crosswalks, bicycles, and other outdoor objects.

The concept for Palantir's key software came from PayPal's anti-fraud protocol

PayPal, which, like Palantir, was cofounded by Peter Thiel, developed the initial framework for Palantir's data-mining service to prevent financial crime. Following the 9/11 terrorist attacks, Thiel realized the software could also enable government agencies to connect data and prevent similar terrorist attacks from occurring in the future.

Lack of regulation makes cryptocurrency a hotbed for money laundering

Cryptocurrency is largely anonymous and widely unregulated worldwide. As a result, crypto-to-cash schemes have become a highly prevalent money laundering tactic that allows criminals to commit financial crimes with crypto accounts and then "clean" the money by selling crypto for cash.

Deepfake pornography poses significant challenges in combating sexual abuse

In 2017, 96% of deepfake videos involved image-based sexual abuse, which has disproportionately targeted minority women, LGBTQ individuals, adolescents and celebrities. Cultural norms, misogyny and AI advancements have contributed to the proliferation of explicit deepfake content.

Modern antivirus software searches for malicious behavior alongside malicious code

The first viral infections were identified by comparing the computer code of programs and files with a database of known virus codes, a method known as signature detection. The ongoing creation of new malware made databases continuously outdated, leading to the development of systems that detect patterns consistent with known viral activity.

BNPL has 19th-century roots, but the pandemic made it mainstream

The modern BNPL model didn't take off until the COVID-19 pandemic, when consumers were stuck at home and lockdowns forced them to shop online rather than in person. The number of US BNPL loans grew more than tenfold from 2019 (16.8 million) to 2021 (180 million), according to a Consumer Financial Protection Bureau report.

Many of the new prenatal genetic tests for rare genetic conditions are inaccurate

Established screening tests for Down syndrome in utero are reliable and accurate. But a New York Times investigation into expanded prenatal genetic tests for very rare diseases—much rarer than Down syndrome—found that more than 80 percent of the positive test results turned out to be wrong based on follow-up testing. These expanded tests for rare diseases are performed from a blood draw at 10 weeks of pregnancy and aim to detect chromosomal abnormalities linked to rare diseases. Companies that offer these controversial tests counter that it's only a screening test—not a diagnosis—picking up true positives and noting that patients can and should be counseled about what the findings mean. (Some users may encounter a paywall.)

US consumers collectively owe more than $1T to credit card companies—almost as much as they owe in auto loans.

The first steps to rebuilding your credit score include getting to know exactly what's on your credit report and figuring out how far you are from the '700 club,' or 'good score' range.

Netflix profits when you're not watching, and its movies are designed that way—read a detail-rich critical essay exposing lesser-known Netflix takes

A vending machine run with Anthropic's AI went out of business after it was convinced to give away items for free and sell a video game console.

Art theft is the third-largest source of criminal revenues worldwide, thanks in part to the subjective nature of valuing a work of art.

Indefinite cloning of some endangered species may not sustain their longevity because cloning success rates decrease as genetic mutations accumulate.

Up to a million Girl Scouts sell about 200 million cookie boxes every spring, generating $800 million, largely because refusing a child is frowned upon

In 2019, a laptop loaded with six of the worst malware in history and described as 'an exhibit of historical weaponry' sold for $1.3M.

Some coin denominations have ridges etched on their sides, partly to prevent counterfeiting, in a practice called 'reeding.'

Clever Hans was a 1900s horse that was believed to be able to solve math equations, tell time, and read and comprehend German, until a psychology student discovered how he got his answers.

Chaos theory—informally known as the butterfly effect—is the reason why weather forecasts are presented with probabilities rather than certainties.

Play the role of a student in a game where you try to navigate college and remain debt-free, selecting different income levels, high school experience, race, ethnicity, and more.

Discover the catastrophic consequences of a failure of the US electrical grid—something that is more likely than many Americans think.

Recent research found that the brain doesn't seem to massively rewire following amputation—upending earlier beliefs about the cause of phantom limb pain.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

Radioactive elements can introduce software errors because the ionizing radiation they produce can detach electrons from atoms, and computer code relies on the distribution of electrons.

Fear or disgust related to clusters of holes and cracks, called trypophobia, may stem from evolutionary processes to help us avoid pathogens.

As of 2025, the most cited papers in science include a review of graphene, methods to improve image recognition, streamlining electron density calculations, and optimizing protein studies.

Telehealth demand for GLP-1s for weight loss is booming as consumers seek easier access.

When caught in the mouths of cardinal fish, seed shrimp release glowing, bioluminescent chemicals, which alert predators of the cardinal fish, prompting the shrimp's ejection.

Gerrymandering works through two techniques: cracking opposing voters across districts to dilute their power, and packing them into a few to waste their votes in lopsided majorities.

The term 'algorithm' originated from the Latinized name of al-Khwārizmī, a 9th-century mathematician whose works introduced Arabic numerals and the decimal-based numeral system to Europe and whose treatise 'Al-Jabr' gave algebra its name.

Frank Lloyd Wright's houses are historically hard to sell because they're old, subject to local landmark commissions, and often unfashionable

Long before Major League Baseball began allowing instant replay for balls and strikes, an umpire reluctantly used the technology to determine whether a hit was a home run, a move that inadvertently ushered in a new era for the sport.