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PAYMENT INVESTIGATION AND DISRUPTION: A POWERFUL WEAPON TO COMBAT PIRACY 

Posted by Mark Mulready | May 31, 2023 | Video Entertainment



Content is the heart of the video entertainment industry. That is why content
owners and service providers want to protect this valuable asset at all costs.
Unfortunately, pirates can also sense this immense value. As long as premium
content is still well-received by audiences, pirates will constantly find ways
to steal and distribute it illegally.

Preventing this from happening, however, is not and will never be an easy task.
Pirates are becoming more sophisticated and challenging to control. So the time
has come to call for a cross-industry commitment to combat piracy.


WHAT DRIVES THE RAPID GROWTH OF PIRATE SERVICES? 

Today’s piracy extends beyond small hacks that gain unauthorized access to
premium content. It is now a form of organized crime! Piracy services are
increasingly successful in presenting themselves as legitimate businesses and
winning the trust of audiences. In addition to offering the most recent and
high-quality content, they also utilize multiple well-known payment provider
services, such as bank transfers, credit card operators, digital payment
processors or cryptocurrency agents.

In our survey conducted in 2018, we examined 400 pirate Internet Protocol
Television (IPTV) supplier sites and discovered that the majority openly
promoted their payment options with reputable and legitimate payment
institutions. In particular, Visa and MasterCard accounted for 21.6% and 21.3%
respectively of all payment methods, with PayPal coming in at 14.7%, American
Express at 9.4% and Discover at 7.0%.

Three years later, the Audiovisual Anti-Piracy Alliance’s study in 2021 showed
that PayPal had taken the top spot with 17.3%, Mastercard was in second place
with 14.7% of the market share and Visa was close behind with 14.1%. Although
things have changed for the better, it does not seem to be enough.

The issue with this is that the appearance of such well-known brands not only
makes it easier to handle payments but also increases consumer confidence in
illicit services. This helps them build a veneer of authenticity and convince
many unwary consumers to subscribe to their services. These illegal options are
making an attractive offer that not many customers can refuse by offering a
comparable user experience that appears legitimate at a lower cost.


WHAT APPROACH SHOULD WE TAKE? 

A more tech-savvy and sophisticated strategy is required to combat pirates and
stop them from distributing premium content illegally. Third-party vendors who
possibly inadvertently facilitate the pirate ecosystem, such as banking and
financial institutions, should be included to create a comprehensive anti-piracy
approach.

Subscriptions and advertising are how pirates generate money and here is where
the industry must focus its efforts. It is therefore critical to disrupt and
neutralize their business models as much as possible, leaving them to rely on
fringe payment platforms or preferably no payment platforms whatsoever.

By cutting pirates off from using popular and legitimate payment supply-chain
platforms, we make it increasingly difficult for them to convince or lure
potential customers to subscribe to their services, limiting their ability to
reach a larger consumer base.


HOW DOES THE PAYMENT INVESTIGATION AND DISRUPTION SOLUTION WORK? 

There are some key elements that are part of a payment investigation and
disruption framework, including:

 * Test purchase the piracy-enabling device, software application or hosted
   service, documenting the initial covert seller outreach and sales.
 * Research server IP addresses used for authentication, the delivery of streams
   and electronic program guides.
 * Collation, reporting and following up on any violations of the rules of the
   accepted payment platforms or schemes to the relevant acquirers, payment
   processors and/or scheme.
 * Escalate and enforce each of the relevant acquirers, payment processors
   and/or scheme as required during the execution of the service.
 * Follow up on actions with the relevant acquirers, payment processors and/or
   scheme to provide feedback or additional information, as necessary.
 * Report detailing the items above as well as the status and the result of the
   notice and takedown procedures.


BUILD A COMPREHENSIVE ANTI-PIRACY STRATEGY WITH US! 

With a strong, trusted network of financial institutions that Irdeto has
established over the years, proving that infringements are no longer
challenging. We can present irrefutable evidence of the legitimate payment
processes that are being utilized to facilitate the fraudulent business.

Learn more about our Payment Investigation and Disruption solution. It is part
of a broader end-to-end piracy approach. Our 5 step anti-piracy framework has
you covered in the fight against pirates.

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ABOUT THE AUTHOR

MARK MULREADY

Mark leads the strategic direction, global delivery and management of
Cybersecurity Services for sports rights owners, broadcasters/operators, games
publishers and other verticals. In addition to managing a global team of
analysts, investigators and product management experts, Mark oversees the
marketing activities for the Irdeto Cybersecurity Services team. Mark was
previously the Fraud & Operational Security Manager at Foxtel and also served 16
years in New South Wales Police Service including special assignments in the
Drug Enforcement Agency, the National Crime Authority and 3 years as a
Prosecutor. Mark holds a Bachelor of Arts and Bachelor of Laws from the
University of Wollongong and was admitted as a Solicitor to the Supreme Court of
New South Wales in 2004. He is currently Vice President for the leading pan
European industry association – AAPA. (http://www.aapa.eu/)

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