CNP Expo: Taking Fraud Prevention to the Next Level
May 21, 2013
First-day morning educational sessions at the CNP Expo in Orlando, Fla. continued with a look at fraud and how evolving technology both enables and challenges current card-not-present antifraud efforts. Companies in the space are rushing to develop mobile payments technology and retailers are trying to figure out how to integrate that technology into their overall strategy. A by-product of the race to get into mobile, however, is that time may not be taken to think about some of the dangers. New devices with new capabilities like faster and more comprehensive aggregation of shopper information could lead to abuse.
“Mobile transactions are going to be more risky,” said Rich Stuppy, vice president of product strategy for Kount.
In today’s antifraud systems, it’s important for merchants to look at high-risk indicators including size of purchase, length of time the customer has been signed up with the mobile service and location of shipping. But, a nuanced, sophisticated approach is also important, according to James Rice, director of market planning for LexisNexis Risk Solutions.
“You want your fraud rate to be zero, but if you achieve that, you’re missing all these orders,” Rice said. “It’s making sure you know more about your customers. Delve deep into the customer and the order.”
Other strategies emerging to fight fraud are following a customer’s activity on the Internet to determine the likelihood that a transaction is legitimate, said Craig Paris of White Pages. Panelists also counseled merchants to be prepared to respond quickly, talk to people with a solid background when seeking help and remember that a fraud strategy will become even more important in the future than it is now.