By Luke Reynolds, Fraud Director, Featurespace
Last year, CNN reported that over $3 billion was spent online on Cyber Monday in the U.S. alone. With online purchases predicted to hit another high again this year, banks, card issuers and merchants are faced with a dual challenge. Not only are they coping with additional website load during the spike in online purchases, but their fraud systems churn out vast volumes of alerts, due to the increase in new types of customers, different payment patterns and huge volumes of transactions over a condensed time period.
Naturally, there’s an increased risk of fraud that comes with high volumes of transactional activity. Surprisingly, however, the bulk of operational costs come from managing false alerts which incorrectly block genuine customers.
So how do banks, card issuers and their merchants manage customer acceptance while still identifying true fraud?
Accepting bumper business without taking on more fraud risk
Having worked for more than 20 years in risk and security in the banking sector, I’ve seen the impact on both customers and merchants when good customers are blocked in an effort to catch fraud.
During the seasonal period from November through to the New Year, criminals will be
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