Can You Avoid Manual Reviews of eGift Card Orders?
This holiday season, online businesses should see dramatically higher e-commerce transaction volumes, if these 2016 stats are any indication:
- Thanksgiving Day: 88% higher volume than a typical day
- Black Friday: 220% higher volume than a typical day
- Cyber Monday: 155% higher volume than typical day
You can be sure that a lot of those holiday transactions will involve eGift cards.
After all, eGift card sales are growing at a 200% annual rate. And 3 out of 4 consumers say they will be buying eGift cards and/or gift cards this holiday season. Plus, projections are that they’ll each buy 2-3 eGift cards and/or gift cards on average.
However, there is a dark side to all this…
- eGift cards were the #1 target of fraud attacks between Black Friday and Christmas out of all the products sold by a leading payment processor’s merchants (2015).
- Another trend to watch: Salesforce predicts that 37% of online sales will come from mobile devices this holiday season, a 76% increase over mobile’s normal 21% share during the rest of the year. That’s cause for concern, as mobile is a favorite tool of fraudsters. In fact, 39% of merchants in the Mobile Payments & Fraud: 2017 Report reported that fraud had increased in the mobile channel.
Even if eGift cards don’t make up a big percentage of your holiday online sales, their uniquely high-risk profile has the potential to create a fraud problem far out of proportion to their contribution to profits.
If you’re one of the 8 out of 10 eCommerce operations that sell eGift cards, all of this potential fraud could get you thinking about ramping up staffing, resources and bandwidth in order to conduct more manual reviews of eGift card orders. But can you really afford those extra costs? How will they affect margins and profitability? And what about the potential negative impact on sales created by the slowdowns that the manual review process often causes?
What’s a better solution for fighting eGift card fraud this holiday season—and card-not-present (CNP) fraud in general—that avoids the higher costs and negative sales impacts of manual reviews? Using an enterprise-class fraud prevention platform like Kount Complete™. It can deliver higher ROI through the comprehensive implementation of best practices that defeat eGift card fraudsters—while minimizing fraud mitigation expenses (e.g., reduced manual reviews):
- Multiple, advanced fraud screening technologies. Deploying multiple technologies provides more opportunities to detect and deter criminal gangs and fraudsters attempting eGift card fraud.
- Real-time data orchestration hub. The greater the amount of data analyzed, the more likely fraudsters can be identified and blocked. Real-time is critical, because fraudsters can more easily subvert old or stale data. And in the unlikely event a manual review is required, this capability can provide the rich data needed to quickly resolve questions about orders.
- Advanced Artificial Intelligence (AI) & Machine Learning technology. The massive computing and memory capabilities of computers can analyze billions of discrete data points and detect and deter fraud at speeds impossible for humans to match.
- Human intelligence with deep fraud fighting expertise. Systems and rules developed by fraud industry experts enable a strategic response to the rapidly changing tactics of professional criminal gangs and fraudsters over the holidays.
- Integrated, comprehensive fraud prevention platform that employs multi-layer approach. The more obstacles, technologies, and processes you can use to screen and block fraudsters, the greater your success against eGift card fraud…without having to resort to manual reviews.
Want to make sure you’re fully prepared to prevent eGift card fraud this holiday season? Download the e-book “eGift Card Fraud: The Gift That Keeps On Taking” to discover the numerous ways fraudsters target eGift cards (for example, card testing, mobile channel fraud, etc.). More importantly, discover the 12 steps you can take to fight back and win.