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Never Implement a New Fraud Prevention Rule Before Playing in the Sandbox

posted on: Thu Aug 28 2014

“What if?” is a powerful question. Especially if you’ve identified what looks like a new type of CNP fraud attack and you want to implement a rule to stop it. Even if you use a fraud prevention solution like Kount Complete™ that makes implementing rule changes simple, it’s always a good idea to ask: “What if?” Fortunately, Kount Complete also makes it easy to ask and answer that question. With our real-time sandbox functionality, you can implement a new rule provisionally – without affecting on-going transactions – to see what the impact would be. There are 4 good reasons to do so.

Avoid impacting sales. Does the new rule cost you more money than it saves? Does it cause you to decline valid orders? Is the decline in sales higher than the cost of the fraud losses? With Kount you can know quickly. You’ll see the impact on sales – less, more or the same -- as well as the savings from reduced fraud. Not projections. But hard numbers based on your actual, real-time transactions. This lets you dial in the optimum balance so you can maximize profits.

Prevent unintended consequences. Does the new rule negatively impact existing rules? For example, does blocking transactions from certain cities in Mexico to stop card testing attacks also inadvertently override a whitelisting rule for one of your best customers located in one of those trouble spots? With the Kount Complete sandbox, you’ll see and avoid rules changes that could accidentally harm valuable customer relationships.

Minimize rules proliferation. Some competing fraud prevention solutions require dozens or even hundreds of rules. Yikes! Keeping track of which rule does what to who and when can get confusing. That’s not the case with Kount. First, the Kount Complete solution is designed to avoid this rules proliferation (most of our clients are able to dramatically improve fraud prevention with an average of 20 custom rules). Second, the Kount Complete sandbox makes it simple to keep rules streamlined. You can easily see the impact of weeding out “dead wood” rules and adjust accordingly.

Evaluate real-time vs. outdated, past activity. The Kount sandbox provides results based on current transactions in real-time. That’s far superior to competitive sandbox implementations, which merely apply provisional rules to past transactions. As everyone knows, the accelerating speed of change in fraud attacks/techniques means looking at old transactions no longer works as a predictor of future performance.

How valuable would a real-time sandbox be for your fraud prevention efforts? Get a free fraud analysis to play around and find out.