Internet retailers lost an estimated $3.3 billion in online revenues in 2009 to fraud according to the CyberSource 11th Annual Fraud Report. Chargebacks accounted for less than half of fraud losses, while the merchants issuing credit to reverse a charge in response to a consumer’s claim of fraudulent account use accounts for the remaining half. The challenge for e-tailers is to screen more online orders while keeping order rejection and fraud rates as low as possible to maximize sales and profits.
Automation is a critical addition that helps e-merchants scale their efforts more efficiently and cost effectively than growing their fraud staff. International card not present (CNP) transactions pose an additional challenge to e-tailers who adopt higher rejection rates to reduce their risk — at the expense of more sales. Digital downloads like music and images also present a unique challenge for fraud detection with a fulfillment window of seconds rather than hours. While they must minimize fraud, e-tailers must also use every tool at their disposal to make their customer’s online purchase as hassle-free and simple as possible, or risk losing to a competitor just a click away.
ThreatMetrix device profiling brings a new and powerful approach to fighting fraud and enabling e-commerce that helps merchants manage CNP payments risk in real-time without relying on personally identifiable information (PII). ThreatMetrix device profiling goes beyond browser fingerprinting to identify the device, bypass proxies and detect the use of botnets to offer e-merchants an additional layer of protection that reduces lost sales from false negatives, reduces fraud chargebacks and chargeback fees and files, and minimizes fraud management expense by reducing the number of transactions sent for manual review.
Top ThreatMetrix Benefits:
- Identify abnormally high volume of transactions originating from a single computer using multiple credit cards
- Flexible risk engine with customizable risk scoring optimized for e-commerce transactions
- No personally identifiable information required reduces risk to you and your customers and streamlines web transactions
- Real-time risk analysis to protect against fraud in digital goods transactions
