MasterCard has an e-commerce anti-fraud tool for small and medium sized (SMEs) businesses. Called Simplify Controls, it lets SMEs control, prevent and monitor e-commerce transactions in real time.
The growth of ecommerce is creating great risk of fraud, said Deborah Barta, Simplify Commerce’s global lead. The new release is an extension of the MasterCard’s Simplify Commerce platform which Barta described as a versatile, highly secure platform.
MasterCard’s survey of SMEs found that merchants are seeing significant gains from ecommerce. It found that the 89 percent who sell online are seeing sales increase by an average of 40 percent. That makes ecommerce attractive for merchants, and for fraudsters. It’s continuing to grow, she added. Javelin Research has predicted that card not present (CNP) transaction — mobile, online and through call centers — will grow to the point when CNP transactions are four times the number of point of sale (POS) purchases.
“This is specifically tailored for SMEs,” said Barta. “We are targeting the folks who are just getting started or are unaware of the potential implications fraud can have. A full 60 percent of SMEs don’t use a fraud prevention tool. Now they are demanding more control and learning the problem is growing.”
MasterCard will sell the anti-fraud tool to acquirers who can then make it available to their customers. Running in the cloud, Simplify Controls helps businesses easily identify and prevent fraudulent activity based on their risk tolerance. It supports all card types, not just MasterCard.
Simplify Controls can work with either a mobile app or a desktop dashboard which merchants can use to customize their fraud settings by attributes such as transaction size, country of origin or a repeat customer. Simplify Controls then automatically declines transactions to meet their risk tolerance and provides merchants with smart alerts so they can stay on top of potentially fraudulent activity. The MasterCard fraud protection integrate fraud scoring from Kount whose decisioning engine analyzes hundreds of variables and activity across the globe in real-time.
“We are shifting control and visibility into small merchants’ hands,” Barta said.
The software delivers statistics that merchants can read at a glance to see their overall exposure and potential fraud risks and enabled direct control over the transactions they submit for authorization. It is launching first in the U.S. but will eventually be available globally.
Both merchants and credit card issuers expect that online fraud will grow as the chip-enabled EMV cards make point of sale fraud more difficult. Julie Conroy, senior analyst at Aité Group, said that CNP fraud was already growing in 2015 before EMV launched. Even now, only 20 percent of credit card and 10 percent of debit card transactions are on EMV, she said at a CNP conference in Orlando recently.
“There’s still plenty of counterfeit fraud opportunity out there for criminals,” she added.
Written by Tom Groenfeldt for Forbes.com.