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Fraudsters Are Making a List of Merchants Vulnerable to Fraud

posted on: Wed Nov 19 2014

Fraudsters are gearing up to attack merchants for the holiday fraud season. They’re making a list to see who’s most vulnerable (and checking it twice) so they can fill your holiday stocking with coal! Here are the most glaring opportunities fraudsters are looking to exploit online:

  1. No real-time data. In a single night, Santa visits every home on the planet. But he’s slow compared to fraudsters. If fraudsters find out your solution uses data that’s days or even hours old, they will hit you hard and dash away, dash away, dash away—leaving you with a taste in your mouth worse than your Aunt Priscilla’s fruit cake.
  2. Inability to rapidly adjust rules. Getting pounded over and over by the same fraud technique? But your IT team can’t change the rules for a day or two because they’re struggling to keep up with holiday initiatives (Black Friday! Cyber Monday! )? Hey, all that overtime pay your review team will get conducting those additional manual reviews will help them buy really nice gifts for their friends and family! Of course, your holiday bottom line won’t be so nice.
  3. No automated Velocity triggers. Can fraudsters order 10, 20, or 100 items in a few seconds using the same stolen credit card without triggering an immediate review/rejection? If not, they’ll be back with a vengeance. And when the chargebacks show up in January and February, you’ll be singing “Blue Christmas.”
  4. No integration between technologies. Can repeat fraudsters fool your fraud prevention system just by switching to a different computer? Or using a different proxy server? Or changing browsers? If your Device ID, Proxy Piercing, and other automated screening technologies aren’t integrated at the code level, expect fraudsters to come back for second and third helpings of figgy pudding, er, stolen merchandise.Fraudsters
  5. Susceptible to first-time fraud. Thanks to the blizzard of breaches, fraudsters control an arsenal of “weaponized” data (credit/debit card accounts, email addresses, passwords, etc.) that make first time fraud hard to detect. If your fraud solution doesn’t have technology that proactively flags transactions which exhibit suspicious behavior (even if the card hasn’t yet been identified as stolen)—expect fraudsters to come calling again and again. And they’ll be naughty, not nice.
  6. Trust, don’t verify. The transaction was approved, so just ship it already!!! But wouldn’t it be great if—in the time between credit card acceptance and actual product shipment—your fraud prevention solution kept checking up on that credit card and alerted you if it revealed itself as fraudulent? Why, you could hold the shipment and save the cost of a chargeback and lost merchandise. Plus the “further review/rejection” emails would put fraudsters on notice that you’re not an easy target. Joy to the world!
  7. Act like Scrooge. OK, this one isn’t on fraudsters’ lists, but it should be on yours. Your fraud prevention solution should be able to immediately identify your best customers and expedite their orders so they don’t have a “Bah Humbug” experience as you try to control fraud.

As you prepare for this holiday season, think of Kount Complete™ as a sort of second Santa Claus: it sees fraudsters when they’re sleeping, it knows when they’re awake, it knows if they’ve been bad or good, so you can have a safe, profitable holiday season!

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