CNP Expo Kicks Off with Fraud Panels 

May 20, 2012

The CNP Expo began today in Orlando, Fla. with four preliminary sessions exploring different aspects of fraud, line-busting mobile payment apps and customer retention in an e-commerce environment. While the official welcome, keynote addresses and the highly anticipated CNP Awards were still a day away, the Sunday afternoon track sessions allowed attendees a first look at some of the important challenges facing merchants that take card-not-present payments and the network of companies that supports them.

Perhaps the most pernicious issue for CNP merchants is how to address fraudulent transactions while not limiting revenue by rejecting good orders. Two of the four sessions this afternoon looked at the challenge of preventing different types of fraud in e-commerce. One six-member panel looked at many of the steps merchants—along with their processors and anti-fraud technology providers—can take to minimize their risk.

The panel covered the benefits and limitations of behavioral monitoring, device fingerprinting, wholesale blocking of IP addresses, CVV and AVS, velocity checks and manual review of chargebacks. While each of the techniques can be effective as part of a comprehensive anti-fraud system, none are sufficient to protect a business on their own, the panel agreed.

“Fraud is a threat to anybody in the card-not-present space,” said Rey Pasinli, executive director of Total Apps Inc. and moderator of the panel. “But fraud screening is not an end-all, be-all. It is an evolving technology, an evolving process. There is no single layer of defense that is effective by itself. You have to use a combination of tactics in order to provide yourself the maximum protection available.”

The CNP Expo continues tomorrow in Orlando with a keynote address from the founder and CEO of clothing brand FUBU and one of the stars of the ABC television show Shark Tank, Daymond John. And, at a special luncheon session of the CNP Expo, winners of the first annual CNP Awards will be revealed.