How To Reduce E-Commerce Fraud And Fraud-Related Costs In A Challenging Economy

Retailers are realizing that the level of e-commerce fraud losses that they have considered “acceptable” in the past is not acceptable at all. That’s especially true in the current economic environment. For many merchants, e-commerce sales are a bright spot right now and they are doing everything possible to maximize online revenues and improve the web shopping experience for consumers. But at the same time, they have to make more efficient use of limited resources. They have to do more with less and eliminate operational costs. They are focused on initiatives that have quick ROI.

 

Online credit card fraud prevention is a critical area to address because they can achieve significant cost reductions almost immediately. It’s about more than just reducing fraud rates ‚Äì it’s about reducing manual review and order rejection rates and increasing analysts’ productivity and accuracy.

 

Several things. First, they are strengthening their defenses by applying more automation and new tools and technologies in their fraud prevention programs. Second, they are moving away from “piecemeal” solutions and taking an integrated, platform-based approach that is quicker to implement and provides results in a matter of weeks. Third, they are empowering their fraud prevention teams to take control of the process. Because criminals are always inventing new scams, merchants have to be fast and nimble at fighting fraud. That means choosing flexible solutions that aren’t dependent on any single anti-fraud technology and that can be easily modified without waiting for help from an IT department. Additionally, they are looking at hosted and outsourced options in order to address capacity, fixed-cost and personnel issues.

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