Kurt Peters , Senior Executive Editor
Online transaction software delivers better fraud detection with SPSS BI software
CHICAGO --06/07/01 -
Fraud costs online retailers hundreds of thousands of dollars each year in lost goods and revenue and surcharges from credit card companies. ClearCommerce’s latest fraud-detection solution, which reduces the risk of these losses, employs the Clementine data mining workbench from SPSS BI, a division of SPSS Inc. (Nasdaq: SPSS). ClearCommerce, a leading provider of transaction processing solutions and fraud protection for e-commerce, used Clementine to develop proprietary neural network models for FraudAnalyzer, the risk-scoring component of ClearCommerce Engine 4.1.
"Clementine gives ClearCommerce access to the most flexible and complete data mining environment," said Daniele Micci-Barreca, ClearCommerce director of data mining. "With Clementine we can rapidly develop and maintain models that can be easily deployed into our software solution. Clementine’s database-centric design enabled us to implement a very scalable and productive data mining environment. We use Clementine to support the ongoing design enhancements for the FraudAnalyzer core model and to development customized models for customers."
ClearCommerce Engine is ClearCommerce’s Internet payment processing software for online merchants and service providers who require a highly reliable and scalable transaction solution. ClearCommerce Engine, which includes the fraud protection components FraudShield and FraudAnalyzer, substantially reduces the risk of counterfeit orders that result in lost revenue and increased expenses.
FraudAnalyzer is a neural network model that assesses fraud risk based on intelligence gathered from thousands of Internet merchants and millions of e-commerce transactions. This information is analyzed, using Clementine, to detect statistical correlations between transaction attributes (such as amount, time of day, billing and shipping information, email address, etc.) and the occurrence of fraud. Clementine then develops a model that detects patterns in real-time and provides the FraudAnalyzer risk score. ClearCommerce customers can then create business rules which automatically approve, reject or review an incoming order, using the FraudShield rule engine.
"ClearCommerce’s use of Clementine demonstrates the importance of analytics for improving the profitability of online businesses," said Peter Caron, SPSS BI senior marketing manager. "As the amount of shopping done over the Internet increases, the likelihood of fraudulent activity also increases, creating a significant risk for online retailers. With Clementine, ClearCommerce is able to develop models that can predict fraud more accurately. This reduces their customers’ revenue loss due to fraud."
ClearCommerce is also planning to use Clementine’s rule-induction algorithms to discover rules that combat fraud by identifying fraudulent orders and confirming legitimate orders. The rules identified through these data mining algorithms will then be implemented using the ClearCommerce FraudShield rule engine, which enables merchants to screen incoming orders in real-time.
Clementine, SPSS BI’s enterprise-strength data mining workbench, helps businesses improve the profitability of customer relationships through in-depth understanding of data. Organizations use the insight gained from Clementine to retain profitable customers, identify up- and cross-selling opportunities, attract new customers, detect fraud, reduce risk and improve government service delivery. Clementine also helps e-businesses better understand their customers’ behavior and, as a result, improve Web site design, increase e-store sales and deliver online services more effectively.
Clementine was the first data mining workbench aimed at business users and is used in a wide range of industries including e-commerce, telecommunications, finance, retail, health care, government and higher education. More than 500 organizations worldwide use Clementine including British Telecommunications, Unilever, Provident Financial, SofMap and e-Dialog.
About SPSS BI
SPSS BI helps people solve business problems using statistics and data mining. This predictive technology enables customers in the commercial and public sectors to make better decisions and improve results. SPSS BI software and services are used successfully in a wide range of applications, including customer attraction and retention, cross-selling, survey research, fraud detection, Web site performance, forecasting and scientific research. SPSS BI`s market-leading products include SPSS, Clementine, AnswerTree, DecisionTime and SigmaPlot.
About SPSS Inc.
SPSS Inc. is a multinational computer software company providing technology essential to the analysis of data in decision making. SPSS Inc. is comprised of five divisions: SPSS BI, SPSS MR, ShowCase, CustomerCentric Solutions and Enabling Technologies. Headquartered in Chicago, SPSS has more than 40 offices, over 1,200 employees and 2000 pro forma revenues of $198 million. For more information, visit www.spss.com.
About ClearCommerce Corp.
Austin, Texas-based ClearCommerce is a leading provider of e-commerce transaction software for more than 40,000 merchants, including Apple Computer, E-Stamp, Cooking.com and Chase Merchant Services. ClearCommerce software features real-time credit card processing and robust Internet fraud protection, as well as online reports, storefront integration, back-end integration, shipping/tax calculation and delivery of digital merchandise. Online businesses and commerce service providers alike rely on ClearCommerce’s capacity to supply the essential transaction processing component that is required for full automation of the online sale. With high-profile venture funding, a four-year track record, world class customers and a growing international presence, ClearCommerce is realizing its vision to provide secure e-commerce transaction solutions to more online businesses than any other company in the world. For more information about ClearCommerce, please visit www.clearcommerce.com.