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Abstract: 

From garden variety fraud to dark patterns in the digital economy, the growth of consumer fraud in recent years has made it increasingly important for banks and payment processors to focus attention on red flags in servicing high-risk merchants. In this article, the author discusses these risks, beginning with FTC actions against processors. She then turns to “dark patterns” in negative option marketing; the role of digital assets in the metaverse; and crypto scams and investment fraud in the metaverse. She closes with notes on screening and monitoring high-risk accounts.

Keywords: OCC “High-Risk” Industries; Dark Patterns; Negative Option Marketing; Deceptive Advertising in the Metaverse; Screening and Monitoring High-Risk Accounts

Affiliations:  1: Venable LLP.