Fraud prevention experts rely on patterns. But months full of unknowns have thrown a sizable wrench in predictability, leaving trust and safety teams to face changing risks and erratic consumer behaviors.
With most of this year’s holiday shopping surge happening online, and starting earlier than usual, fraudsters are banking on merchant risk teams not knowing what to expect. Here’s how to prepare for a season that’s sure to be as unique as it is unpredictable.
Total, uninterrupted availability has never been a realistic expectation during the holidays, and in the face of Covid-19, may now be an impossible one. On top of the annual time off people are expected to take, this year includes children at home, virtual schooling, personal appointments at inconvenient times due to shelter-in-place restrictions, and the overall slowing down of society as we adjust to life in a pandemic.
Many fraud prevention teams have also been scaled back this year and are struggling to get more done with fewer resources. But during the holidays, skeleton crews will become a reality as people go on vacation—and that’s why it’s so important to...
From now until 2023, retailers around the world are careening towards more than $130 billion in losses as a result of card-not-present fraud, according to a report released in January 2020 by Juniper Research. Unfortunately, with more consumers turning to online shopping during the pandemic, that number will likely be much higher. The swift and exponential expansion of e-commerce businesses and alternative payment methods has undoubtedly brought major convenience to consumers, but with such speed, growth, and scale comes an equally large rise in vulnerability—a fact that cybercriminals are all too aware of, and all too ready to exploit.
Modern business leaders are being forced to face a harsh and unfortunate reality: the technology and tactics employed by fraudsters are constantly evolving. To stay a step ahead, online businesses need a fraud prevention solution that can effectively detect multiple types of fraud across a variety of channels—and enable trust and safety teams to scale operations beyond what they can do on their own. For many years, rules-based fraud prevention systems were the preferred method of fraud fighting, but as fraudsters have become more sophisticated, an increasing number of businesses have turned to machine learning (ML).
Unfortunately, not all machine learning solutions are created equally. Look for...
Approaching fraud prevention with a Digital Trust & Safety mindset takes more than understanding that online fraud presents a unique battlefront for risk teams. Beyond encouraging the adoption of a new platform or process, implementing it successfully means remodeling business strategies and reconsidering metrics to better meet the dynamic challenges and opportunities of the digital world.
While adapting existing tech and tactics, merchants must consider three core elements of Digital Trust & Safety: automation, context, and data.
At minimum, time-consuming manual tasks like verification cause bottlenecks and delays. But at their most damaging, those slow-downs snowball into...