I Don't Have a Fraud Problem 2 Minutes on Fraud: Episode 8
Episode 8 “I don't have a problem”
You may have a greater fraud problem than you think. In order to protect your eCommerce operations, you must evolve and avoid being an easy target for fraudsters. Greg Coles, 20+ year eCommerce expert, discusses the evolution of eCommerce and fraudster tactics.
Greg Coles: If the fraudsters are the ones that dictate what happens then it’s not going to be good news for any of us.
I’ve been involved in the online fraud and payment industry for quite a while. Including back in the day when we didn’t get anything close to the amount of data that we have today. We were dealing with virtually nothing. We didn’t even have CVV or AVS or any of those types of things to deal with. I’ve seen it evolve where we’ve gotten more information, but fraud has become more prevalent. I went through the EMV (Chip-and-Pin) change where a lot of the brick-and-mortar fraud got pushed online. I’ve seen many, many changes in both how the payment industry works along with how the fraudsters do their jobs as well.
The old ways [of committing ecommerce fraud] are still working to a certain extent. Obviously, when it comes to how fraudsters operate, they’re gonna aim for the low-hanging fruit so if a retailer is not doing their job and letting fraudulent orders go through, that’s who they’re gonna continue to hit. The amount of time and effort that you are spending manually reviewing orders that shouldn’t be manually reviewed, and even worse than that, cancelling orders that shouldn’t be cancelled – it’s a massive problem within the industry. There’s a lot of companies out there that think they don’t have a fraud problem, and they absolutely do have a fraud problem. And that is one that they are creating by delaying customer orders that don’t need to be delayed and cancelling customer’s orders that shouldn’t be being cancelled. Statistics show that over sixty percent of customers that have an order declined that was legitimate will either never shop at that retailer again or greatly reduce their shopping with that retailer.
I would one hundred percent work with a third-party vendor to ensure that I could start right from day one with a world-class fraud detection system.