Outdoor Equipment Retailer Joins Anti-Fraud Collaborative

Nov. 15, 2010

Ethoca, a Dublin-based company that uses collaborative information from CNP merchants to reduce its clients’ exposure to fraud, announced that Tahoe Mountain Sports has joined its fraud-fighting community. King’s Beach, Calif.-based Tahoe Mountain Sports said CNP online transactions are a growing source of fraud, especially in the last six months. As the economy has slowed down, the retailer said there has been a notable increase in customers who have received merchandise but can’t pay their bills initiating fraudulent chargebacks. Online sales are the key growth area for Tahoe Mountain Sports, so finding a way to differentiate between good and bad orders, which usually have similar profiles, is critical to growing profitably. The company said joining Ethoca’s community has enabled it to gain traction against fraudsters by assessing transaction experiences other merchants have had with the same customer. “The faltering economy is bringing out the worst with fraudsters trying harder than ever to outsmart us. And every fraudulent transaction costs us money in product, shipping and chargebacks,” said David Polivy, owner of Tahoe Mountain Sports, “as well as training and personnel time. So when Ethoca’s services help us to block fraud, it’s a direct savings.”