With the digital age came different types of fraud retailers were not used to encounter in their daily operations. Shoplifters came to the store and the loss prevention team knew the policies and procedures to follow to apprehend the shoplifter. Now, retailers fear online fraud and debate on how to keep customers information safe. The most prevalent fraud retailers are to be aware of is card fraud. Keeping cardholder’s information safe is a top priority for online retailers, and monitor suspicious transactions has become a top priority for them.
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e-Commerce Fraud: The Rapidly Growing Challenge for Retail Investigations
Just as the word “e-commerce” has come to refer to a menagerie of different specialized markets, so e-commerce fraud comes in many different guises. And as the great pace of retail evolution dictates that retailers’ transaction processes are constantly changing, so the frauds change with them.
In a bid to stand on the top of the heap competitively, retailers are offering as many options to consumers as possible when it comes to ways to buy. You can place an online order at an in-store kiosk to be shipped to your house. You can place an order from your mobile device to be picked up at a local store. You don’t like the color of the new curtains you ordered through the online customer rewards program? You can return them to the nearest brick-and-mortar store to save on shipping.
There are multitudes of different ways for customers to shop in the modern omni-channel retailing world. But this proliferation of transaction processes can leave behind more and more holes that malicious actors can exploit. “You have this almost complete melding of digital and physical worlds now, and the primary challenge is keeping pace with that evolution,” said Jerett Sauer, director of loss prevention at Gap Inc. “Awareness of risk has always been a core part of any great LP program, and historically, digital space was outside that sphere of awareness; the focus was on people touching a POS or physical merchandise.
Kount and Ethoca Join Forces to Help Ecommerce Merchants Eliminate More Fraud, Accept More Orders
Kount, a leading provider of fraud detection and sales boosting technology, and Ethoca, the industry standard for collaboration-based technology solutions that help card issuers and online merchants increase transaction acceptance and stop ecommerce fraud, today announced a strategic partnership to help ecommerce merchants increase their overall acceptance levels.
Ecommerce merchants aim to strike a delicate balance: eliminating as much fraud as possible, while maximizing the acceptance of good orders. With the increasing frequency of data breaches and online security threats, many ecommerce merchants are tightening their fraud tools to stop as much fraud as possible, but that often results in too many good orders that are wrongly rejected and result in lost revenue.
Through its partnership with Ethoca, Kount now offers merchant customers worldwide an additional, complementary service with Ethoca Alerts. These alerts provide a safeguard to catch fraud that has already been confirmed between the card issuing bank and the cardholder.
Smart Card Technology Will Affect Your Fraud Prevention Strategy
With large retail chains like Target, Neiman Marcus and Michaels experiencing massive data breaches, U.S. banks and brick-and-mortar merchants face serious pressure to increase credit card security measures by implementing smart card technology.
This shift to more secure card-present transactions at physical, smart-card ready terminals will impact ecommerce sites as fraudsters are stymied at brick-and-mortar stores and turn their attentions to card-not-present (CNP) transactions online.
As smart cards become standard in the U.S., forward thinking ecommerce merchants must prepare for the coming increase in online fraud. Now is the time for software companies to ensure that their fraud prevention system is ready.
Brick-and-Mortar Merchants Face Serious Pressure