Black Friday, Cyber Monday: time to turn fraud patterns into disorder27-Nov-2017
Brad Wiskirchen, CEO of Kount:
With the best data, merchants can successfully beat fraud and boost sales.
Card-Not-Present (CNP) fraud, friendly fraud and chargebacks are top of mind for merchants across the globe asBlack Friday and Cyber Monday approach. Online merchants, regardless of their size and industry, are particularly vulnerable when struggling to keep a balance between reducing fraudulent orders and maximizing legitimate orders. Poor execution during this time of the year can have a devastating impact on the future’s business, as customers that are mistakenly declined will likely not visit nor purchase from the merchant long after the holiday season.
Data is at the core of fighting off fraudsters. Merchants that are succeeding in identifying fraudulent orders versus good orders, point to the data collected at the time of the transaction and analysis of historical data as the main elements contributing to the positive outcome. Granular data, relating to each aspect of a transaction, reveals a host of information and analytics within milliseconds, providing merchants with everything necessary to accept or decline the purchase. Historical data provides context to the data and allows merchants insight into broader fraudulent acts. Location, buying patterns, card used, origination device, and many other types of data analytics are collected to assess the order.
In recent years, during these retail-oriented events, Kount has helped merchants and partners identify specific fraud tactics that continue to be staples of today’s fraud practices for unprepared merchants. A couple of examples include the use of proxy servers to provide fraudsters with a local IP address. The ability to pierce the server to identify the true location is key to understanding the true intent of the purchaser. Order linking is a key technology to identifying the use of different cards, devices and email addresses.
Merchants are in a constant battle to stay ahead of the fraudsters and their latest techniques. Implementing the right fraud strategy and solution allows merchants to enjoy more holiday sales, less holiday fraud, stronger customer relationships and continued sales throughout the year.