LexisNexis Offers RiskWise Product For E-Tailers To Help Grow Revenues And Reduce Fraud Losses
Online credit card fraud losses exceeded $1 billion in 2003
DAYTON, OH, July 08, 2004 - With losses from online credit card fraud projected to grow to more than $2 billion a year by 2007, LexisNexis® offers RiskWise® to help electronic retailers reduce fraud, increase sales by improving the accuracy of online customer verification and decrease the number of orders that are normally reviewed by customer service groups.
“The LexisNexis RiskWise fraud reduction products are powered by sophisticated statistical models built upon reliable public records information,” said Jim Peck Senior Vice President and Chief Operating Officer of LexisNexis, a leading provider of legal, news and business information. “RiskWise can help online retailers increase profits by catching fraudulent transactions, as well as reducing the number of false positives that result from simple business rules that block both good and bad orders from entering the processing system.”
E-tailers mistakenly reject good consumers and transactions when the identity of a legitimate consumer cannot adequately be verified. The Gartner research firm forecasts that such mistakes cost online retailers $315 million during the most recent holiday shopping season, while fraud losses totaled only $160 million.
For example, potential customers are rejected because current fraud reduction methods rely on order acceptance rules based on geography, zip codes, and identical billing/shipping addresses. Models based on public records information can be more flexible and have proven more adept at isolating fraudulent transactions while providing confidence for acceptance of orders that would have been rejected through business rules.
LexisNexis fraud prevention tools work by feeding internal customer data, public records and other proprietary information into a predictive model to determine the likelihood of fraud for an account. The product then returns a fraud likelihood score that allows e-tailers to create policies around the scores to ensure a consistent response. In addition to the score, the RiskWise product will pinpoint certain attributes of the order that could be fraudulent as well as providing ‘due diligence’ data based on the extensive searching of public record data sources. By automating this screening process, the tools also help reduce operating costs.
About LexisNexis
In the U.S., LexisNexis® (www.lexisnexis.com) offers an extensive range of products and customized tools that address job-specific and organization-wide information needs, driving productivity and confident decision-making. For 30 years, LexisNexis, an information solution provider, has been a pioneer in secure data sharing, information policy, and personal privacy. Through its risk management flagship products, RiskWise®, PeopleWise® and Banko®, LexisNexis helps to locate people and assets, authenticate identity, enable commerce, conduct background screening, and support national security initiatives. Customers include almost every Federal Government agency, the top 100 law firms, and Fortune 500 companies in the fields of national security, financial services, collection and recovery, insurance, telecommunications, e-commerce and retail. For more information, contact www.lexisnexis.com/riskmanagement.
LexisNexis:
Kristina Grammatico
Local: (937) 865-8821
Toll Free: (800) 227-9597
Ext. 58821
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