PCM Vol. 2 - Issue 11

Thought Leaders Corner
aimed at collecting login credentials to defraud the
unsuspecting consumer. Whaling involves spoofed emails
that appear to come from people in position of authority
within the company, like a CEO or CFO, asking for an
immediate wire transfer;
• Triangulation: the fraudster pretends to sell goods online,
but for the only purpose of collecting credit card information
and other personal details, which are then immediately used
to perform fraudulent purchases at another site;
And then we have “clean fraud” where the transaction provides
absolutely no indication of anything improper, clearly the hardest
to detect.
What to do to keep fraudsters at bay?
The key to mitigating e-commerce risk is relentless vigilance.
Putting in place the tools that generate data, not a flood of
useless reports which go mostly unread, but laser focused data
(threat intelligence), which leads to analysis, and prompt action.
There is no single answer or silver bullet to combat fraud.
Instead, a multi-pronged approach has been proven to deliver
excellent results, composed of the following elements:
• Staff training;
• Selecting the right processing partner;
• Refining your own offering (privacy, refund policy, easy
access to customer service);
• Internal fraud prevention (access control, need to know
basis);
• Use of scheme tools (AVS, CVV2, 3DS);
• Strict adherence to PCI DSS;
• Use of fraud screening tools (device fingerprinting, IP
geolocation);
• Outsorting for manual review of certain transactions; and
• Monitoring of chargebacks, but also total volume,
refunds and declines, for any unexpected spikes or other
inconsistencies.
Being great about risk and fraud is not a nice to have. It’s not
about becoming a bit more profitable. It’s a major competitive
differentiator.
Fraudsters are always looking for the path of least resistance. If
your webshop is easier to defraud, you’ll be certain to attract an
inordinate amount of fraud. Conversely, if you are better than
your competition, you’ll effectively be “sending the fraud away”.
So, in my opinion, the best approach is to take control and create
a path that, without compromising convenience and ease of use,
protects your business and your consumers. As my very first
boss taught me years ago; there are three secrets to success:
preparation, preparation and preparation. Risk management is
no exception.
Paysafe
www.paysafe.com
Paysafe Group PLC is a technology company that provides online and mobile payment services. Paysafe
delivers end-to-end payment solutions - from card issuing to acquiring; from payment gateways to
merchant accounts; from fraud and risk management to reporting and analytics; from digital wallets and
online invoicing to mobile.
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