Electronics Retailers: Build Your Own vs. Fraud Detection as a Service
If you’re an eCommerce retailer that sells Electronics, these facts are why you need a robust anti-fraud system:
- Electronics as a category is a top 3 target for CNP fraud
- 31% increase in card-not-present (CNP) fraud attempts during 2016 holidays in the U.S.
- CNP fraud losses are projected to soar 80% to a record $7.2 billion by 2020
At the same time, online Electronics retailers have indicated strong concerns with the growing cost and complexity of fraud prevention. And the problem isn’t just for large eCommerce operations. Fraudsters are making the strategic decision to move “down the food chain” and target smaller retailers as their tools of the fraud trade have given them automation options. In the past 36 months, retailers have taken steps to dramatically increase their fraud mitigation efforts, but that can have substantial costs as well.
Managers assessing the optimal path for maximizing fraud prevention while minimizing cost and complexity will typically find themselves weighing the pros and cons of in-house, build your own (BYO) systems vs third party fraud detection as a service or SaaS option. The matrix below highlights key areas of consideration associated with each path:
As continuing adoption of EMV drives fraudsters out of card-present fraud (card counterfeiting) and into card-not-present (CNP) fraud, the sophistication and intensity of fraud attacks will only increase. This means that online Electronics retailers operating in-house anti-fraud systems will be compelled to spend more and more of their budget on higher-performance technology, stronger systems, and greater risk management expertise to keep pace.
Maybe that’s why “70% of merchants believe that partnering with an outsourced fraud mitigation solution brings critical protection and significant ROI, based on analysis of research that Kount commissioned,” notes Rich Stuppy, COO at Kount.
To find out how Kount delivers stronger ROI when it comes to cost while simplifying best-in-class fraud prevention, schedule a 30-minute live demo. You’ll see how simple, intuitive and affordable our SaaS approach is when it comes to world-class fraud prevention for online Electronics retailers.