online retail risk management

Internet Retail Expo 2012Internet Retail Expo 2012

“ “Online Retail Payment Fraud & Risk Management”Online Retail Payment Fraud & Risk Management”

Dipti Rajpalwww.ebsrms.com

Risk Management Solution

Fraud Affects all Merchants

Online credit card fraud is $8.53 billion Industry.

4% of Revenue lost due to frauds

Percentage of accepted orders which are later determined to be fraudulent is approximately 2.5% for domestic & 4.7% for intl. orders

Less than 5% of the Merchants have effective Fraud prevention in place

Merchants rejected intl. orders nearly three times higher than domestic orders


How do fraudsters obtain consumer Information?

Unsecured servers & databases Unknown log files Unsecured websites & shopping carts Employee misconduct Phishing Emails


Common Online Fraud Prevention Tools Can Fall

Short

CVC/CVV – Card Verification Value/Code AVS – Not accurate and N/A in India 3D Secure(VBV/MCSC) offers limited

coverage IP address – can be spoofed easily


Chargeback Types

No cardholder authorization Goods not shipped/service not rendered Goods not as described/defective Duplicate processing chargebacks


Threats for Online Retail Merchants

Loss of Merchandise

Potential termination of merchant a/c due to Excessive Chargeback Brand damage/Reputation Fines from Visa/ MasterCard / Acquiring banks Currency conversion risks Other Operation/ Review costs


Preventive Measures for Stopping Fraud

Bulk orders from same customer High value transaction Velocity checks Multiple retries Negative/positive customer list New technologies: Device Identification, Nexus, Proxy detector etc.


Guidelines for winning more Chargebacks

Strong refund policy Crisp & clear Terms of service Delivery schedule and terms Email confirmation – After transaction & during Delivery confirmation Shipment Tracking/Reference by email (must retain copy in server)


Overview- What We Do

Forensic Client Device Identification

1000+ Rules and Algorithms

User-defined Risk Models

Velocity Checks

Negative & Positive Database - IP Ranges, Chargebacks, Carders, Hackers, Bots

Nexus - Maps fraudulent Patterns in transactions

Customizable Reports


abuse

X Name: Mary PoppinsEmail:[email protected] Las vegas blvdLas Vegas, NV702-534-7698IP:206.45.95.01Geoloc: Nevadacc: 4563296511117777

X abuse

Name: Abraham Zakariaemail: [email protected] E. 35th StNew york, ny212-365-7878IP:94.115.85.10Geoloc: New yorkCc: 5125189074381930

abuse

XName: Aaron Wall email: [email protected] Hollyoke AveMinneapolis, MN 320-698-8354IP:72.138.11.9Geoloc: MinnesotaCc: 4123234534568759

suspect

suspect

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Fraud Management with Device Identification

Screen Shots – Device Screen Shots – Device IDID

AVSBlocklist

Velocity Checks

DeviceInformatio

n

How EBS Fraud Prevention works?F

raud Filters

GOOD

SUSPECT

FRAUD

TRANSACTIONS

Nexus


NexusNexus


Risk Management Solution

Visit us @ EBS Counter

Free Chargeback Guide!

[email protected]

“Fraudsters know you, Now you will know them Better”

Thank you


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