Comment: No E-retailer is immune from payment fraud
Don Bush, Vice President of Marketing for Kount believes that if used in the right way fraud prevention will actually make a business more money.
The increase of ecommerce worldwide has led to an increase in online card fraud and cybercrime is becoming ever more sophisticated. In the UK alone in 2012 the value of online sales was £78 billion and this is forecasted to rise by 11.5% in 2013. This has made the implementation of industry leading fraud prevention more important than ever. I believe however that fraud prevention can do so much more than just prevent fraud. With intelligent fraud prevention technology it can enhance the customer experience, increase sales and ultimately improve upon the bottom line for all online retailers.
Busted Tees, one of the webs leading internet-based T-shirt brands, implemented our fraud prevention solution, Kount Complete™ and revenue grew by 40% to 50%, thanks in part to Kount enabling the business to move into markets they previously avoided due to fraud concerns.
Adam Schwartz, General Manager of Busted Tees commented; “Kount did more than just get us back to “even” by stopping the fraud. The bigger picture is that we’ve swung from paying tens of thousands of dollars each month to deal with fraud...to the point where we’re actually increasing revenues because we can confidently go after new markets and new opportunities.”
Cyber-crime cost UK organisations an average of £2.1m each in 2012 - If you’re taking your business online you need to implement automated fraud prevention – but wouldn’t it be good if the cost invested actually meant more sales?
With Visa reporting a 16% rise in ecommerce across Europe in 2012 the Kount management team and I has identified Europe as a fast growing market, but with rapidly increasing online activity comes the heightened risk of fraud.
With high street retail continuing to struggle many are turning to ecommerce and a stronger multi channel strategy to stay in business but in doing so, they must protect themselves against the threat of cyber-crime.
he rise of card-not-present ecommerce transactions has created a new, sophisticated level of international criminals looking to steal from online companies. Retailers feel forced to impose hard-and-fast rules on which transactions to accept, and from where to accept them, narrowing their customer base and the geographies they work in.
On December 27, 2012, a top ten gaming company experienced a dramatic increase in the number of attempted fraudulent orders. The decline rate went from the average of under 5% to over 35%. Kount Complete™ automatically detected and stopped an aggressive BOT attack that was attempting to infiltrate and fraudulently purchase goods on the company’s network, over a period of approximately three days. During the attack and once the attack was over, the company’s website responded normally, as if nothing happened.
While online merchants must protect against fraud it is essential that security measures are not prohibitive to business. It is crucial that customers experience no negative impact on their transaction time being delayed or interrupted; the Aberdeen Group estimates that a one-second performance delay can reduce sale conversions by 7%, a figure that represents £2.55million a year for a £100,000 per day site.
Everyone knows fraud hurts online businesses, but stopping fraud can also be turning away good sales with fraud tools that are too stringent and rules that reduce sales conversion. This blanket approach stops many fraudulent transactions, but it also blocks many legitimate, honest consumers, hurting sales and damaging your brand.
I believe that fraud prevention is crucial but can also show some real benefits:
- Increase Sales
- Reduce False Positives
- Grow Incremental Revenue<
- Reduce Chargebacks
- Accept More Orders
- Reduce Manual Reviews
- Expand Into New Markets
- Reduce Cost of Fraud Management
Good fraud prevention cannot only protect your business but provide you with a wealth of information to increase revenue. In a world where every advantage counts, not utilising all resources available to you can be the difference between prosperity and going bust.
Kount has just launched into Europe and are exhibiting at RBTE at the eCommerce Pavilion, Pod #490F .
Don is presenting Kount’s solution at the Multi-Channell Pecha Kucha Theatre "Boost Sales Beat Fraud at RBTE."
- Tuesday 12th 13:40
- Wednesday 13th 11:10
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