Resources: 2 Minutes on Fraud
Ninety-nine percent uptime for a fraud prevention solution is not good enough. That equates to approximately seven hours of downtime per month leaving companies vulnerable to a surge in fraud losses. Kount targets zero planned and unplanned downtime with an impressive track record for uptime. Ask your fraud prevention provider how many nines of uptime they have. If they experience frequent and lengthy outages, financial losses are inevitable and it’s time to look elsewhere.
Loyalty programs are a powerful way for companies to engage and grow a customer into a brand evangelist. But if an account takeover occurs and customers lose rewards points, miles, or sensitive personal payment information, major brand damage occurs. Understanding the motive behind fraudulent account takeovers is a start. Next, companies must protect a customer's reward account with the same diligence that is given to monetary transactions.
The power of the digital customer journey is extraordinary. Brands have the opportunity to be part of consumer online habits and rituals. By providing brand value in the right way, companies convert customers into lifelong fans, and brand ambassadors. As brands utilize Kount’s enterprise fraud detection solution, they strike the correct balance – thwarting criminal fraudsters and abusive customers, while creating less friction for good customers. It is all about amplifying revenue while reducing fraud by allowing brand ambassadors to have the best user experience possible. Be a strategic part of the digital transformation by protecting and building the customer journey.
The launch of a mobile app is a powerful moment. If done well, you have the ability to include payments, loyalty and brand appreciation in ways that have previously been impossible – very exciting features for your customers. But if you launch without fraud protection in place then losses mount. A common reaction in this situation is for restaurants to scale back mobile app features, a great disservice to the brand and to your customers. Watch as Rich and Tricia explain how leading restaurant brands can engage customers with delightful user experience and protect their mobile apps from fraud.
As businesses face challenges often the first question asked is, “who can fix this?”. When it comes to digital fraud prevention for Quick Service Restaurants (QSRs), more often than not the answer is “our loss prevention team”. Whoever ends up managing card-not-present fraud prevention at your organization, it is important to keep balance in mind. Detecting and preventing as much fraud as possible while maintaining great customer experience requires coordination with multiple stakeholders, employing key best practices, and launching the right technology.
Restaurant brands, including Quick Service Restaurants (QSRs) are taking a traditional brick and mortar customer experience and undergoing a digital transformation by offering online ordering. Which customers love. Unfortunately, so do criminals. Whether it is cyber criminals or ordinary buyers, both find ways to exploit weaknesses in your digital customer journey. And while issuing banks take the loss for fraud in card-present transactions, the liability shifts to the merchant when fraud occurs in card-not-present (CNP) transactions.
Synthetic identity fraud is projected to grow considerably. The large number of data breaches occurring, and the depth of information uncovered in those breaches, has given online criminals the opportunity to construct fake profiles that look legitimate. These synthetic identities assemble real information such as name, email address, billing and shipping addresses, phone number, credit card info and even credit history, in conjunction with fake information to pass cursory fraud prevention checks. See how a large network of data and linkages break down this superficial veneer and get to the true core of whether or not someone is real.
Because of the competitive market-landscape and the demand for ease of use is at an all-time high, if a legitimate customer sign-up or transaction is declined, they will likely leave and never return. False positives, also known as sales insults or false declines, offend customers and will hurt profits in the long run. Make sure that you are using a fraud management solution that allows for customized policy rules and the ability to add chargeback information into your order history. This, combined with robust machine learning ensures the digital journey is enjoyable for good customers and safeguards against fraud attacks.
Complexities of identity verification outside of the Commonwealth countries doesn’t have to keep you from selling cross-border. Many of the big growth markets are outside of the United States, the UK, and Australia. Selling in Brazil, China, and other emerging markets is a strong move for many companies because the middle class is growing, they have greater buying power, and there is strong interest in buying global consumer brands. Don’t let fears of unknown markets hold back your sales – learn strategies for preventing fraud across the globe.
Quick Service Restaurants (QSRs) are interacting with their customers digitally now more than ever. For every digital interaction, there are dozens of ways that online criminals and abusive customers have figured out how to defraud them. It is absolutely imperative that QSRs engaging in commerce, via mobile devices or online, have certainty that they're dealing with the customer vs. a bad actor.
With the right strategy, fraud prevention can be turned from a cost center to a profit center in every organization. Not only does stopping fraud save money, but with certainty in every digital interaction, organizations can enter new markets and sell cross-border without customer friction, resulting in increased revenue. And with access to business intelligence reporting that provides deep insights, fraud prevention teams can advise other revenue-generating departments to help maximize sales opportunities.
Utilizing machine learning in eCommerce fraud prevention can be powerful, as long as the combination of elements are correct. First, there has to be the right data collected; with massive amounts of it. Next, the data-rich machine learning system needs guidance from experts with deep domain expertise and a solid knowledge of fraud. Then, add in business-specific policies and you are ready for immediate success and continual improvements.
There are multiple reasons why having artificial intelligence in your fraud prevention arsenal is a strong strategy. It is a difficult problem with very high stakes - you must have the correct risk assessments for every digital interaction. Lean to one side and you offend good customers, lean to the other and bad actors hurt your business. Additionally, fraud represents a very small fraction of all interactions - it's like pulling salt crystals from a pile of flour. The power of AI and machine learning when directed by fraud experts gives the edge needed to strike the perfect balance and shine a light on fraud.
Fraud is increasing in volume and sophistication and we are in a perfect storm where it’s much easier for the bad guys to do what they do, and much harder for the good guys to do what they do. There’s a number of reasons why. It’s easy to get trained, there are low barriers to entry and personal data is not only available, but surprisingly cheap. To make it all the more concerning, the number of bad actors is growing as is the sophistication of their tactics and the specialization of fraud rings.
Every merchant experiences chargebacks – do you know where you rank against your peers? Monitoring chargebacks is a common way to determine the health and status of how merchants are doing. That’s one of the reasons Kount partnered with Chargebacks 911 to produce the very first State of Chargebacks Survey. Drawing on input from over 1,000 respondents, the results uncover their experience, insights, and performance related to managing fraud and chargebacks for online and mobile commerce.
Payments are constantly evolving, and merchants need to keep up with the latest trends. As technology becomes more sophisticated, criminal fraud becomes more sophisticated as well. Jeff Guthrie of Moneris tells Kount about the importance of keeping up with the latest fraud tools and technology.
The ability to create payments based on location is growing, and customers can now be tracked by GPS location and movements. In this 2 Minutes on Fraud episode, Patrick Brophy of Moneris discusses GPS, payments and where he thinks intelligence is headed in the near future.
You may have a greater fraud problem than you think. In order to protect your eCommerce operations, you must evolve and avoid being an easy target for fraudsters. Greg Coles, 20+ year eCommerce expert, discusses the evolution of eCommerce and fraudster tactics.
Fraudsters are continuously getting smarter, and customers are now much more mobile from a payments perspective. Brad Primavera, Chief Product Officer at Limelight, discusses how important it is to be able to track these customers and see where they are ordering from.
Fighting back in milliseconds is key to stopping a fraud attack. Seconds are hours at the speed of the internet, and fraud just doesn’t wait. Rich Stuppy, Chief Operating Officer, Kount, outlines how important it is to have a fraud strategy in place that is able to work in an omnichannel environment and fight fraud fast.
A simple online search can reveal thousands of sites that sell credit cards online. The dark web used to be a hidden corner where bad guys would exchange best practices. But now, it’s out in the open. Today, a regular person can Google Search terms to find hundreds of pages of content designed to help them become a professional fraudster. Rich Stuppy, Chief Operating Officer, Kount, outlines how simple it is to become a professional fraudster.
In the past, fraudster tools for defeating your fraud prevention techniques were proprietary and only available on the dark web. Times have changed. Today, fraudsters are more blatant than ever. Tools are widely available at online stores to help fraudsters exploit your company. No longer in the shadows, online fraud tools are easily distributed and constantly evolving. Using a “set it and forget it” strategy for to protect your company from attacks will simply not work. Rich Stuppy, COO, Kount, explains fraud behaviors and how creating a robust fraud strategy will prevent you from being a target.
The 30-60-90 day lag in chargeback reporting can be discretely hidden by record sales. To make matters worse, the chargeback lag means your financial reports will show a distorted picture of your company’s performance. For example, sales you thought you had in December could actually turn out to be ugly losses in February, March, and April. Don Bush, VP of Marketing, Kount, explains the pitfalls of a chargeback lag and the importance of getting in front of this common hazard.
Manual Reviews are often a last line of defense against fraud, but is your review process costing you profits? If your “cost-per-manual-review” does not decrease as sales grow, that means every new order actually reduces profitability. Don Bush, Vice President of Marketing, Kount, explains how determining your own optimal Manual Review rate can protect profits.
Chargebacks are expensive. They cost your business time and money. But the goal of zero chargebacks might not be the best strategy either. Merchants trying to achieve zero chargebacks are often leaving good sales and frustrated customers in their wake. Don’t use a chainsaw, when you should use a scalpel. For each merchant, there is an optimal chargeback rate, which allows for maximizing sales while mitigating risk. Don Bush, Vice President of Marketing, Kount, explains chargebacks and examples of optimal rates.