Risk Ident Online Fraud Forum – Part 2

Risk Ident Online Fraud Forum – Part 2

Risk Ident recently hosted its first Online Fraud Forum in Hamburg, with over 100 attendees from 40 different companies. You can read about the different views shared between attendees, including merchants and Europol representatives, in our previous blog post here.

This week we’d like to address some of the common fraud experiences and problems revealed in the survey we carried out with attendees at the event. We asked industry executives what the most common types of fraud were that they face – the top result was the problem of determining fake identities (over 60%), which is becoming more difficult as personal identification details are increasingly stolen and sold by criminals online.

Account takeovers were cited by 15% of attendees as a potential problem for their business, but the actual number is likely to be far higher. One difficulty many merchants face is in identifying account takeovers in the first place. Merchants see that the customer account is being used but are not necessarily aware that there may be a criminal behind it. This is why it is so important to link transactions and data such as device identification that, combined, can help identify risky activity before it harms the business and the customer.

_MG_0672 KopieRespondents included representatives from fashion, financial services, banking, travel, digital goods, telecommunications, dating, gaming and sport. Among the risks highlighted were: Affiliate Fraud, whereby the affiliate partner is fraudulently claiming to have secured leads and sales conversions for the company that are not in fact genuine; and Friendly Fraud, which occurs when the customer receives a product ordered online, but claims it was not delivered and goes to their bank for a chargeback to recover the funds.

In fraud prevention, it’s vital to stay one step ahead of the fraudsters, yet over half of the attendees surveyed revealed that they only revaluate their fraud prevention, specifically adapting their rules, twice a year at best. Over a quarter only look at anti-fraud adjustments once a year, while five per cent never adjust their setup.

At Risk Ident, we believe that data science is essential in keeping ahead of fraudsters that will continue to push technical boundaries to the limits, as they have already done with ethical ones. Constantly analysing your fraud problem, adapting your technology, knowledge and experience and tailoring it to the problems at hand provides the strongest defence against increasingly sophisticated criminals.

John Albrecht works as a Product Expert for Risk Ident. Our Product Experts are dedicated contacts for existing clients, covering all technical and administrative aspects of our products.