According to a recent study, eCommerce merchants in the US have experienced a 140 percent increase in fraud attacks relative to 2020, while every dollar associated with missed fraud costs organizations $3.60 on average, up 15 percent from before the pandemic.
This white paper examines the trends and common themes associated with merchants who thrived versus merely survived 2020 and the lasting changes on eCommerce and omni-channel retail. This includes a look at differences in risk management strategy architecture, readiness to scale and effective communication between the digital and physical worlds to support a true Unified Commerce strategy.
Model-Based Fraud Scoring is a technique used by merchants to predetermine the level of risk involved with an order in a card-not-present transaction.
The accelerations in eCommerce Delivery, Marketplaces and the gig economy have companies scrambling to make better decisions, faster. Model-based applications are being applied to address wider areas of fraud, as they can detect threats more precisely and efficiently.
13% of organizations today have adapted Machine Learning and AI into their fraud detection protocols. Another 25% of organizations plan on converting from a rule-based system within the next two years.
In Europe, digital retail payments were to be become more secure and less susceptible to fraud with the introduction of SCA. Yet a new standard for competition is being set for payment service providers to create SCA payment flows with minimal friction.
The EU has set the stage with its SCA (Strong Consumer Authentication) regulations designed to make digital payments more secure. The goal of this implementation is to increase the level of security surrounding electronic payments that benefit both consumers and merchants, but is the end result meeting the objective?
B2B merchants are presented with many hurdles as they are forced into new regulations. B2B firms are rushing to incorporate SCA procedures just like B2C e-commerce firms, but B2B transactions face more complex issues.
Equifax finalized a deal to purchase Kount for $650 million, following suit after TransUnion acquired iovation in 2018 and Experian acquired 41st Parameter in 2013. Kount will maintain their headquarters in Boise, Idaho, as it becomes a part of Equifax’s United States Information Solutions (USIS) company. The deal is expected to close in the first quarter.
The average order value during the Black Friday weekend was up 64 percent year-over-year, but during the entire months of October and November the average order value of fraud attempts was up 70 percent.