How to Fight Card-Not-Present Fraud

  • Identity Verification


E-commerce fraud is a growing concern in the online retailer space. As more businesses move their products and services online, fraudsters are following with many ways to compromise information. While we would all like to have a one size fits all technique to take care of fraudulent activity online, there isnt such solution. The fact is there are a lot of different ways to prevent fraud online, but they dont all work the same or have the same effectiveness.

Identity verification

From address verification to SSN verification, you may get different results depending on the user or applicant. There really isnt a way to tell the difference between a criminal and someone who has lived in many places that doesnt remember a set of addresses listed in the KBA questions presented to them alone. There are also issues with fraudsters using other peoples social security information. A good solve for all of your fraud prevention concerns is a layered solution that utilizes many different tactics to verify and authenticate an identity.

Unlike banks and financial institutions, online retailers dont have the oversight of feared regulatory regime, or the budgets, to match the financial industrys level of success. E-commerce breaches likely result from an array of vulnerabilities. Online retailers, by nature, arent as secure as their brick and mortar counterparts. Not to mention, more fraudsters are targeting online merchants because card-not-present transactions are more vulnerable. Online retailers have been reluctant to implement additional forms of fraud prevention use and transactional authentication. The process of e-commerce transactions can be stronger with the assistance of dynamic authentication. Retailers need to enhance authentication methods to ensure only legitimate customers are able to make purchases, online or otherwise with payment cards.

The increase in e-commerce breaches highlights why CNP fraud is such a growing concern. Almost all stolen cards are used in a CNP fashion. While online retailers continue to work on the gaps, fraudsters will continue to get in and exploit them. Implement the strongest fraud prevent solution today to help fight fraudulent activity.

[Contributed by EVS Marketing]