Dynamic Scoring and Recoring
Overview
The Dynamic Scoring™ feature monitors a credit card for signs of fraudulent activity even after a transaction has been approved. This "post-authorization" process has proven highly successful at spotting suspicious activity and retroactively tying that activity to previous purchases. The Kount Complete™ system then alerts the merchant that a previously-approved order now looks to have relevant connections to fraudulent activity. The merchant can re-evaluate the order and decline to ship– avoiding the loss of the goods while also preventing the expense of a chargeback.
Fraud Detection
Kount's core technology analyzes hundreds of variables to detect fraud and risky behavior.
Kount’s Fraud Platform consist of the three main pillars of an overall fraud strategy, Fraud Detection, Strategy Management and Operational Management. Dynamic Scoring & Rescoring is just one of the many features in Kount’s comprehensive solution.
The Solution
The Dynamic Scoring™ feature capitalizes on the fact that stolen credit cards quickly start to exhibit patterns that identify them as involved in fraud. For example, stolen cards often incur a high number of big ticket purchases in a short amount of time, spawn multiple device identities in rapid succession, and give changing email addresses across multiple transactions.
Dynamic Scoring™ continually monitors all credit cards involved in approved transactions and provides real-time updates to the merchant when the card's risk status changes. Dynamic Scoring™ does this by identifying and grouping transactions that are either directly or indirectly linked through a set of attributes or variables such as device IDs, credit card numbers, and emails. Based on this updated status, the merchant can determine if there is sufficient threat of fraud to retroactively decline the purchase request or to take other necessary action (for example, manual review by a human agent).
Dynamic Scoring™ is a continual, real-time process. As the information associated with an original order changes across all Kount merchants, the "fraud risk" score for any transaction currently in a merchant's queue also changes, providing additional real-time updates on the transaction's risk.
Note: Kount does not disclose which merchants were affected by the fraudulent activity, but will tell them that certain attributes, like the number of credit cards used, associated with the transaction have changed. This gives merchants an opportunity to assess the orders and verify the identity of the person placing the order. Kount Dynamic Scoring™ is continually searching for fraudulent connections and updates scores every 30 minutes. Since this is all happening in real-time, merchants can easily cancel orders, retain product and prevent a possible charge.