E-commerce fraud is on the rise and online businesses are becoming more vulnerable to cyber crimes. iovation (News - Alert), which reportedly protects online businesses and their end users against fraud and abuse, has outlined ways online retailers can reduce fraud costs while enhancing the customer experience.
"Charge backs, credit card fraud, account takeover and other forms of fraud plague card-not-present (CNP) transactions in online and mobile channels with related losses totaling $3.5 billion in 2012 alone," said Scott Olson, iovation's vice president of product.
Olson emphasized the need to catch fraudsters early, before the transaction is complete and before retailers incur a loss. He advocates retailers to leverage device intelligence to combat evasion techniques and reveal evidence of prior fraud. iovation is touted to be the device reputation authority, which can expose and predict trustworthiness from a consumer’s interactions.
iovation uses a combination of advanced device identification, shared device reputation and real-time risk evaluation. The company's device reputation database reportedly protects more than 10 million transactions and stops an average of 200,000 fraudulent activities every day.
Online businesses are all about reputation and building trust. iovation claims to be able to identify good online customers by leveraging its device reputation database. Using device reputation technology, iovation can instantly identify known threats and risky patterns from the consumers that use the retailer's site.
iovation's ReputationManager 360 service examines the identity behind the device, to see if past online and offline behavior reveals risk. Users can view specific transaction’s account or device details to uncover hidden associations.
By accessing the iovation database - the assembled intelligence on over 1.5 million devices worldwide, businesses can respond to threatening devices that they’ve never encountered before.
Aaron Kline, director of e-commerce solutions at ID Analytics, urged retailers to strike a balance between cybercrime prevention and a good customer experience for excessive security could drive legit customers away while insufficient protections could lead to financial loss.
With e-commerce sales set to increase, online businesses would do well to take iovation's help to combat fraud.
Edited by Cassandra Tucker