Rule the online retail market with smarter fraud prevention
Merchants are expected to provide a seamless, secure and convenient online retail experience for their customers. Yet, as online fraudsters are determined to get something for nothing, online retailers have a lot to do to keep their customers secure. To aid this process, many merchants use rule-based fraud prevention, along with other fraud prevention tools, to help determine whether transactions are fraudulent or not.
Miscalculated or inefficient rules can actually harm business and impact bottom line by triggering ‘false positives’. This is the term given to legitimate transactions that have been refused by the merchant, often due to failing to balance convenience with sophisticated security.
Basic rule systems and numbers are not always efficient or effective enough in identifying and preventing fraud. If a loyal customer falls victim to an account takeover, due to their reliable history, the fraudulent activity can often be missed or ignored by the merchant until it is too late.
The way to combat the fraud threat more effectively than a simple rule system is for fraud managers to use intelligent systems combined with machine learning. This enables merchants to see what changes in activity could be leading to account takeovers. It helps establish patterns of connections between multiple data sets that can indicate when something is suspicious and worthy of extra attention.
Depending on which industry sectors merchants are active in, patterns and requirements will also differ but can be intelligently refined via machine learning that evolves over time. Single rules have a limited scope and do not take into account the full context of the transaction, which is why we believe in empowering fraud managers. We enable them to drive machine learning forwards to combine innovative technology that learns patterns and trends in merchant and customer interactivity, with human behaviour knowledge and fraud fighting experience.
In the fight against fraud, this represents one of the most efficient, dependable weapons in the merchant arsenal, keeping businesses and customers safe online.