The e-retailer spends at least 50% of its monthly display ad budget on the highly targeted, data-driven—and often cheap—ad placements using programmatic platforms.
As more traditional retailers are selling online, retailers and payments processors are finding that traditional fraud-prevention techniques are working online, Certegy says.
As more traditional retailers are selling online, retailers and payments processors are finding that traditional fraud-prevention techniques are working online, Jeff Carbenier, senior vice president and group executive, Certegy Check Services, tells Internet Retailer.
Certegy, which processes payment transactions for 329,000 merchants, has instituted what it calls a Consumer Library to authorize transactions. The library is a database of over 200 million consumer records. Certegy authorizes transactions against not only such traditional elements as name, address, and check-writing history but also against such factors as whether the transaction is coming from a bank that has been a source of many fraudulent transactions or if the order is going to an address that has been used in fraudulent transactions in the past.
“The tools from the brick-and-mortar world are effective against anything online except the most sophisticated fraud,” he says.
The Consumer Library is replacing a service which had asked consumers to answer qualifying questions in order to establish the customer’s identity and the authenticity of the payment.
Online payment fraud is about three times as high as fraud in stores, says Kathy Reed, senior vice president. The nature of online selling allows thieves more latitude in executing fraud, she says. She notes the case of a group of thieves who set up a fraudulent company, complete with a bank account and a warehouse. The group committed a series of rapid thefts against online retailers, with the products being shipped to the warehouse address. By the time the transactions began to come back as invalid, the thieves had re-sold their ill-gotten goods and closed the warehouse.