Tips for Selecting the Right Fraud Prevention Technology for Your Business
May 20, 2016
Matching your eCommerce business requirements to the right technology can be tricky because there are no “silver bullets”, but the tips below should help you pick the right tool.
1 – Enable your fraud team
Give your team the tools they need to quicken the pace and accuracy of fraud detection. The tools provided should:
Automation: Integrate easily with your payment gateway or eCommerce engine, automatically apply fraud detection rules and algorithms in real time and reveal fraud trends by linking a fraud incident to other transactions.
Configure rules: Allow for the creation of customized rules and customer behavior profiles.
Test and refine rules: Have a “rules sandbox” to test the efficiency of new and refined rules before deployment.
Use reports: Provide easy-to-understand, near real-time custom reports that enable quick action by analysts.
Screen more than financial transactions. Screen for many types of fraud, such as account takeover and loyalty fraud.
2 – Extend capabilities with third-party data
For effective fraud prevention incorporating relevant data sources, in compliance with applicable law, into your fraud tool can help improve the reliability of fraud detection. Examples of data sources are:
Shared fraud database: Data collected from multiple sources to provide a bigger picture on fraud.
Fraud services: Data from anti-fraud services, such as Ethoca, can improve detection.
Step-up authentication: Standard authentication protocol, such as 3D Secure, allows you to push only the risky customers through the most onerous screening process.
3 – Augment your team’s reach with services
Even with automation you still need professional analysts to provide human insights in situations that aren’t clear cut. The selected vendor should have:
Global reach: Global operations and customers around the world to provide comparative data-driven insights useful in your region.
Technical help: The professional help you need to develop and test rules, particularly in early stages of deployment.
Training consultation: A selection of on-site training options.
Managed services: The capacity to augment your fraud team during peak demand periods, and overnight for 24/7 operations.
A fraud prevention tool is a vital part of fraud management. To achieve your goals, give your team a good tool, extend it with useful third-party capabilities and augment your team’s capabilities.
About the Author
Mark leads the Accertify business in the JAPA region and has over 17 years experience working in technology and payments. When he’s not traversing the subways of Tokyo or streets of Shanghai, he can often be found where he is most at home - cruising Sydney harbour on his boat.