The transition to credit cards with chips is leading to a spike in online fraud. While credit card chip readers may have led to fraud reduction for brick-and-mortar businesses, fraudsters have found a new way to cause trouble: online fraud using e-commerce and other card-not-present transactions.
In the fraud prevention industry, when you slam a door fraudsters will break a window. So, staying ahead of the game is crucial. It was with this in mind that Emailage CEO Rei Carvalho sat down for a chat with The Silicon Review to talk about the industry and how Emailage will play an even bigger role in 2017.
While the email address is commonly collected, outside of a fraud blacklist it’s rarely leveraged as a piece of risk assessment data.
This approach has significant limitations and will never give you the clarity needed to balance fighting fraud with frictionless approval of trustworthy transactions.
In today’s landscape where fraudsters move more quickly than ever, it’s essential for companies to leverage every piece of customer data to its maximum fraud prevention potential.
Think about this: If you reduced manual review by 50%, how much would your company save? And how much more would you sell?
The most expensive aspect of fraud prevention – manual review – continues in a seemingly unstoppable upward trend. It’s a time-consuming process, which adds a cost without return and has a severe impact on customer experience.
According to research by CyberSource, nearly one-in-four orders are manually reviewed. The study also found that merchants reported accepting 82% of orders after the review, which indicates that more orders are being reviewed than is strictly necessary. (more…)