1.2 Billion New Worries for Merchants
The recent news of Russian hackers obtaining 1.2 billion Internet passwords should make consumers concerned, but merchants should be terrified.
1.2 billion is approximately 20% of the world’s population and maybe as much as 50% of the world’s Internet users. So are merchants prepared to identify which transaction out of the next two to five will be fraudulent?
As a consumer, it will be a painful and time-intensive process to change all of your passwords and even remember which ones you used where and which accounts and companies are most vulnerable. But merchants often don’t have such simple fallback processes to rely on. Most times, when they accept an order, the burden falls exclusively on them to determine whether it is a legitimate customer or a fraudster. While consumers have protection from their bank that can limit losses, online businesses typically bear 100% of the risk associated with fraudulent transactions. Add that to the list of responsibilities they already have as a business owner and there is no way they can stay current with the latest fraud techniques and how to beat them.
Certainly there are tools to stop the most blatant fraud. Obviously, the most basic steps are verifying the account with the bank and ensuring the name, credit card number, CVV number and address match. To eliminate the threat of fraudsters masking where they are, geolocation and proxy piercing tools determine whether a transaction is originating from where it should be. Similarly, device fingerprinting verifies the true device being used for a transaction to determine whether the transaction is legitimate. But these are only fragments of a much larger picture.
Is this credit card tied to 50 email addresses? Is it linked to devices identified with fraudulent behavior? Was the name, email or credit card used in a transaction 2 minutes ago? How many times has it been used in the past hour? Even the most vigilant and savvy merchants can’t access this level of information or protection without a proper fraud solution. And the best fraud solutions can link the common threads of transactions across the globe – tying together email addresses, devices, credit cards, location and a wide range of information to form a clearer picture of what is fraud and what isn’t.
With 1.2 billion fresh accounts and passwords on the market, wouldn’t it be ideal to have a solution capable of tracking this bigger picture?