Five Strategies for Overcoming Cross-Border Fraud
Written by: Sam Hartung, Manager, Risk Partnerships - Whitepages Pro
Cross-border shipping is one of the fastest growing segments of the B2C eCommerce market. While this global growth offers a breadth of opportunity for merchants, fraudsters have taken note. Global commerce presents unique fraud prevention challenges that many domestic companies have not yet faced, and in many cases, current domestic processes are not adept in catching cross-border fraud.
There are 5 key challenges associated with tackling international fraud:
- Consumer data varies by region. There is no global standard nor key international identifier.
- Fraud tactics vary by region and become more sophisticated over time. The internet allows fraudsters to share insight freely and develop powerful networks all over the globe.
- Data source and legal rules vary across the world. Each country handles data privacy differently and prosecutes as such.
- Overcompensating for risk limits cross-border success. A merchant’s fear of fraud can hinder the shopping experience for good customers.
- Individual identity factors aren’t enough to mitigate risk and quickly and accurately catch fraud.