We attended the MAG Mid-Year Conference in Phoenix last week to talk with payment companies and merchants about how our global real-time identity data, proprietary network insights, and 20 years of sophisticated data science help authenticate payments in fractions of a second, as well as reduce losses by catching fraud.
During our conversations at the event, we noticed common challenges that payment companies and merchants are facing as eCommerce evolves.
Nearly a third of global eCommerce purchases – projected to reach $2.29 trillion by the end of 2017 – were expected to be made with a mobile device. As companies focus on mobile loyalty and payment options, they are opening themselves up to increased attempts and new types of fraud. RSA discovered that 60% of eCommerce fraud attempts originate on a mobile device. This is partially due to less information being provided by the consumer for mobile transactions, which can hinder fraud prevention. Fraudsters will always look for the weakest link, making it important for merchants to tailor fraud strategies and practices to each transaction channel.
Buy Online Pick Up in Store
Buy online pick up in store (BOPIS) is another pain point with retail merchants. Customer demands are always driving new service and innovation and BOPIS is another way retailers are satisfying their needs. And while it can be a great way to get product into their hands quicker, it creates some confusion and difficulty for merchants. When purchasing an item to be picked up in store, customers do not have to provide a shipping address. This makes it easier for fraudsters to sneak past review teams, as there is no way to determine billing/shipping mismatch or distance from IP address to the shipping address.
Cross-border eCommerce is growing as merchants tap into rapidly expanding markets around the world. However, some of the fastest growing markets are also the riskiest for fraud, and merchants can lack understanding of how identity data varies across countries and regions. One of the key challenges in managing fraud across borders is the lack of common standards for basic identity factors. Data elements that can be used to assess risk in North America, might not work as well elsewhere. We speak with merchants often about strategies for scaling fraud systems internationally and recommend taking a holistic approach to fraud, both domestically and internationally, consolidating vendors where possible.
For all of these challenges, the solution lies in adjusting fraud strategies and rulesets in order to outsmart fraudsters. Download our eBook to learn of additional trends facing merchants and how to stop them.