by Paul Marcantonio, Head of UK/Western Europe, Ecommpay
Disclaimer: One-Off fraudulent transactions are nigh impossible to prevent. That being said, the (unfortunate) reality of the situation is that one-off transactions are also rare. It’s just too much hassle for would-be cyber- criminals to steal sensitive consumer data for a single pay-out. They’re in it for the long haul, which means they’ll be registering new accounts in an attempt to maximise their efforts. And that, incidentally, is what’s going to lead to their inevitable identification.
As soon as suspicious individual transactions are analysed cumulatively, a pattern of suspicious behaviour emerges. It’s this pattern that makes it easier for advanced risk-management platforms, such as payment service provider and acquirer ECOMMPAY’s FraudStop system, to recognise those individual transactions as belonging to specific cyber-criminals. FraudStop applies the scoring principle, learning on the basis of AI to establish consumer fingerprints. Consumer finger – prints, in turn, help the risk-management system pick up on irregularities in established behavioural patterns to identify fraudsters by digital trace and device.
The scoring system assesses each transaction processed by the acquirer or payment service provider for its merchant client against a series of preconfigured filters, which are arranged into a specific set of rules depending on industry sector and other relevant variables. The filters, when triggered by the system, combine predetermined values to calculate a score. This score is then assessed by the security system to determine the likelihood of the transaction being fraudulent, after which it is either accepted, rejected outright, or routed for manual review.
The best approach for e commerce businesses looking to reduce financial losses associated with unauthorised transactions is to partner with a payment service provider offering a solid security strategy with a proprietary risk management solution that is technologically adaptable to new threats and bolstered by in-house expertise.
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