Report: Social Media Provides Valuable, But Time-Consuming, Fraud-Fighting Tool
July 12, 2016
Appreciation of the value of social media data as part of an e-commerce retailer’s fraud prevention efforts is on the rise, but many lack understanding about how to use it, according to a new report from Worldpay. In Fraud Trends 2016 , Worldpay found 60 percent of merchants use social media data in some way during their fraud review process. More than half, however, lack the knowledge of how to properly leverage the information and lack the time to do so, because it currently is a very manual process.
“For most respondents, the principal reason for using social media in a KYC or fraud-prevention context is to check that an account, and therefore an individual’s identity, is real,” the authors wrote in the report. “To do this, manual reviewers make an assessment based on factors such as quantity of photos, conversations and posts. However, the majority of respondents felt that, while valuable, these reviews are highly time-consuming and that they would welcome an automated way to derive the same insight.”
The report also looked at how online merchants viewed mobile transactions and found nearly 60 percent acknowledge they are more risky, yet two thirds do not treat them differently than other online transactions.