MRC Global Fraud Survey Highlights Most Effective Tools for Merchants
Fraud is a problem that is constantly evolving. Those on the front line of the fight against fraud, such as merchants and acquirers, need to understand what tactics and methods fraudsters are using.
The MRC Global Fraud Survey recently revealed interesting findings on the changing nature of fraud that Risk Ident has long been discussing with organisations involved in online selling. Although every situation requires a tailored approach to fraud, the MRC survey found the same three critical parts of a fraud programme: the right people; the right tools; and the right data.
A good anti-fraud solution requires a mix of all of these elements. We constantly invest in the right people for our data science teams to ensure our fraud prevention technologies, such as device fingerprinting, always stay one step ahead of the fraudsters, while keeping personal customer data private.
The MRC survey also reports that “payment fraud […] has become more sophisticated and professional. As a result, fraudsters have become better at compiling information needed to make a transaction look legitimate.” This raises the need for fraud prevention technology that can analyse all of the device data, transaction data and historical data together, to identify whether or not the transaction is genuine.
More than 10 percent of online merchants in the MRC survey revealed they are planning to implement one or more of the following four tools within the next year: device fingerprinting; email address verification; customer website visits; and behaviour analysis. According to the report “Device Fingerprinting and Fraud Scoring Models rank as the most effective tools by those merchants who have deployed them.”
Integral to our fraud prevention expertise is the capacity to use technology to identify legitimate and illegitimate transactions, no matter the device used. As consumer confidence in using smartphones for online purchases increases, this is an area that is of real interest for merchants looking to grow their omnichannel offering.
Recognising fraud on mobile devices has never been more important, which is why we’ve developed our technology to be the most sophisticated product on the market today, using modern methods of data science and software engineering to ensure consistently high levels of fraud recognition that help merchants stay secure.