In the realm of fraud in web retailing, merchants are realizing the level of fraud losses that they have considered acceptable in the past is not acceptable at all. This is especially true in the current economic environment. For many merchants, however, e-commerce sales are a bright spot today. As a result, they are doing everything possible to maximize online revenue and improve the web shopping experience for consumers.
But, at the same time, they have to make more efficient use of limited resources. They have to do more with less and eliminate operational costs.
“Retailers are focused on initiatives with quick ROIs,” says Jeff Liesendahl, CEO of Accertify, an anti-fraud technology and services vendor. “Online fraud prevention is a critical area to address because they can achieve significant cost reductions almost immediately. It’s about more than just reducing fraud rates—it’s about reducing manual review and order rejection rates and increasing analysts’ productivity and accuracy.”
Reducing the cost of fraud
Merchants are doing several things to reduce their cost of fraud, Liesendahl says. First, they are strengthening their defenses by applying more automation and new tools and technologies in their fraud prevention programs. Second, they are moving away from piecemeal solutions and taking an integrated, platform-based approach that is quicker to implement and provides results in a matter of weeks.
Accertify provides a more comprehensive and flexible solution for preventing online fraud. Its Interceptas platform enables merchants to screen, review and resolve transactions faster, more efficiently and with greater accuracy in order to achieve significant reductions in fraud losses and administrative costs related to fraud prevention.
The platform is able to incorporate unlimited transaction and customer data records for increased detection rates and reduced false-positives (legitimate orders flagged as suspicious). Its user interface is easy to use and customize and the platform has the ability to integrate more than 20 anti-fraud tools for authentication. It was designed to be flexible and to allow fraud managers to modify the system without help from their I.T. departments so they can adjust quickly to criminals’ evolving schemes.
The third area where merchants are working to reduce their cost of fraud is empowering their fraud prevention teams to take control of the process. “Because criminals are always inventing new scams, merchants have to be fast and nimble at fraud-fighting,” Liesendahl says. “That means choosing flexible solutions that aren’t dependent on any single anti-fraud technology and that can be easily modified without waiting for help from an I.T. department. Additionally, they are looking at hosted and outsourced options in order to address capacity, fixed-cost and personnel issues.”
Lining up with retailers` objectives
Accertify believes merchants are choosing its Interceptas fraud-prevention platform because the vendor is aligned with their objectives.
“Our Interceptas platform integrates all of the best practices, tools and components merchants need for a strong defense,” Liesendahl says. “Our customers are experiencing improved success at screening orders on the front end, enabling them to identify more suspicious orders. They are spending less time validating good orders, which keeps their analysts focused on weeding out high-risk transactions. They are manually reviewing fewer orders and completing the reviews in less time.”
One reason they’re able to do this is that Interceptas helps them manage large volumes of fraud data more efficiently and effectively, Accertify says. Interceptas addresses the entire process of fighting fraud with a unique end-to-end approach that closes the gaps that fraudsters slip through.
“User-friendliness is another key factor,” Liesendahl explains. “Our fraud dashboard and user interface are very easy to use. Interceptas allows the merchant’s fraud team to modify business rules and plug in new tools quickly, without reliance on internal I.T. resources, so they’re in control and can react quickly to the ever-changing fraud environment.”