One of the biggest decisions for a merchant is whether to go with a third-party fraud solution or to build one internally. A panel of fraud experts from 11 Main, Career Builder, The Source and New Balance shared their experiences and answered audience questions on Day 2 of the 2016 CNP Expo in Orlando, Fla.
An in-house solution is customized for your business and most likely will not incur an incremental cost per transaction. However, panelists noted, there can be technical expenses and resource shortages caused by continually reviewing rules and managing the system. And, as one panelist mentioned, they experienced high manual review rates when relying on an in-house solution. (more…)
According to CyberSource’s 2016 Fraud Benchmark report, companies allot most of their fraud funds to the manual review process. Of those manually reviewed, 82% transactions are approved. Because of the high acceptance rate of manually reviewed orders, companies are tightening their screening process to decrease that number in hopes of cutting costs and accepting more legitimate orders in real-time. (more…)
In a recent study conducted by Juniper Research, they found that CNP (Card Not Present) fraud will significantly increase to more than double by 2020. They attributed this jump to the implementation of the EMV chip in brick and mortar stores, which has already caused fraudulent activity to shift online by 11% since October. Because of the higher security the chip provides, fraudsters have been less inclined to focus on brick and mortar and they shifted their efforts to online.
This shift has major online retailers tightening security by integrating proactive fraud prevention solutions to thwart off fraudulent activity and reduce the risk targeting their business. And although fraud tactics perpetually change, solutions like NoFraud are developed to detect the latest behavioral trends among fraudsters to stay one step ahead and reduce fraud significantly. Major retailers using these solutions have succeeded in reducing their fraud rate.
Read the full article here: SC Magazine.
Battling ecommerce credit card fraud can be an incredibly time consuming, often frustrating, endeavor. Many companies have dedicated staff or entire fraud departments focused on reducing fraud. Often, the cost of running a fraud-prevention campaign can be more costly than the losses incurred by fraud. A successful anti-fraud solution targets the cost of fraud rather than fraud itself.
To calculate the true cost of fraud, all the contributors warrant consideration. The easiest one to assess is chargebacks, the value of stolen merchandise. Equally costly, however, is revenue lost due to false positives. (more…)
When Ezzie Schaffran, chief operating officer of Certified Watch Store, approached us last August, his site, CertifiedWatchStore.com, was using a hodgepodge of outside and in-house security measures to catch payment fraud.
Schaffran has a long history of fighting online payment fraud, having served as COO of jewelry e-retailer Ice.com. He considered a crop of vendors offering transaction insurance for CertifiedWatchStore.com, but says he found the fees, which ranged from 0.5% to 3% of the transaction value, higher than he thought practical. (more…)
In 2014, ecommerce fraud cost US retailers 32 billion dollars (LexisNexis true Cost of Fraud Study 2015). That amount soared 11% as fraudsters refocus their efforts on ecommerce enterprises since the implementation of EMV chip technology that makes brick and mortar store transactions more secure.
Unfortunately, as fraud prevention methods get more sophisticated, so do the fraudsters. As seasoned fraud prevention experts, NoFraud is at the forefront of battling fraud and would like to share the following tips to help you secure your ecommerce transactions.
