8 Awesome Tips For Choosing The Right Fraud Prevention Software
The explosive growth of e-Commerce is creating opportunities for fraudsters to defraud digital businesses. The advancement of this threat vector is powered by technology, with which they are thwarting fraud and creating revenue drain. Hence, companies need to strengthen fraud prediction and prevention and develop a proactive approach to prevent fraud in e-businesses in real-time.
E-commerce fraud is an illegal transaction performed by fraudsters by stealing information of authorized user accounts to make fraudulent transactions without their knowledge. E-commerce fraud is rising twice as fast as e-commerce sales. Fraudsters use stolen or fake credit cards to false identity to pose as legitimate personnel. Ecommerce fraud is ever-evolving, and cybercriminals are making use of advanced tactics with every passing year. e-Commerce frauds increased by 45% in 2017. Hence, companies need to integrate the right fraud prevention software into their e-Commerce platform to combat the growing threat of these fraud types.
To develop an effective strategy to fight against e-commerce fraud, it is important to identify the fraud types. Some of the common types of fraud that takes place on e-Commerce platform are card testing fraud, friendly or chargeback fraud, refund fraud, account takeover fraud, interception fraud, and triangulation fraud. These frauds can significantly affect your business revenue and bottom line. While combatting these fraud types may seem to be daunting, you can deploy the top e-Commerce Fraud Prevention Software into your business to defend your e-commerce platform and reduce fraud risk. These are powerful tools that enable you to detect identity theft, strengthen authentication flows, assess risk, and provide effective prevention mechanisms.
To choose the best e-Commerce fraud prevention software, here are some of the important points that you need to consider.
Maintain PCI Compliance
The fraud prevention software should be aligned with the policies and standards set by the Payment Card Industry Data Security Standard (PCI DDS). It helps to ensure that the company that stores and processes credit card and cardholder information develop a secure environment to facilitate the transaction. It helps to create a firewall between your internet connection and the system that stores your credit card data. The software should enable you to effectively follow relevant PCI guidelines so that you do not encounter any legal risk.
While choosing fraud prevention software, you need to identify the capability of your team analysts. It will help you to determine if you want to end-to-end automation of fraud prevention or integrate it with the human workforce to streamline your fraud prevention strategy.
Comprehensiveness And Self-Learning Capability
The fraud detection software should have versatile capabilities to facilitate active fraud detection and prevention. It should have a new learning ability and security intelligence feature to learn about new fraud types and cyber threats. The software should use data to automatically learn about the threat vectors.
The software should use a multi-layered protection strategy for fraud prevention. There is a standard five-layer approach, and each layer represents a specific customer activity and behavior.
- Endpoint-centric consists of data about how customers connect with the e-commerce platform, and it includes user authentication, device identification, and geolocation.
- Navigation-centric is navigation-centric and is based on customer behavior. It includes how they navigate through the system; their progression is mapped.
- Channel-centric consists of analysis account behavior to identify any anomaly in customer behavior.
- Cross-channel-centric is cross-product, cross-channel, and involves monitoring customer behavior through different channels.
- Entity link analysis is the identification of user connections to other user accounts and transactions for authentication.
Deployment And Integration
Choose fraud software that integrates easily into your business infrastructure. Enquire about the time and cost of deploying the software and if your vendor will support uptime, and upgradation, across the software lifecycle. While selecting software, take care of your network, software, hardware, and network, and choose a custom-built software that suits your business platform.
An Address Verification System in your software allows you to verify if the customer’s billing address is similar to the address on the credit card. A particular transaction that does not satisfy the AVS norm will be sent for further verification to identify its validity. It helps to determine that the user is making an authorized transaction.
Fraud scoring uses predictive analytics to look into the historical data and combines it with current data to identify fraud patterns and determine customer behavior. It deploys a machine learning (ML) model, and companies can train the model to recognize fraud patterns. The user is allocated a score for each transaction based on different parameters. It helps to instantly decide which transaction should be rejected. It also enables businesses to define the highest-risk transactions in a card-not-present environment and forward them for additional verification.
These factors will help you to choose the right software for your e-commerce platform. Choose software that can adapt to new, unknown fraud patterns and facilitate automation to remove the time-consuming tasks to enable fraud analysts to focus on critical cases. It should help to eradicate risks from the environment in real-time and preventing them from recurrence.
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