|
Home / Computers / Security / Web Site
The Next Generation Of Online Fraud Protection
By:Brandi Cummings
Today's online world is one fraught with danger. At every turn internet users are faced with phishers, hackers, fraud and the threat of identity theft. This creates an atmosphere where users are not comfortable purchasing things online and merchants are being taken advantage of on a regular basis.
The Cybersource 8th Annual Online Fraud Report estimates that over $3 billion in online revenues was lost due to online fraud. The Internet Crime Complaint Center or IC3, which is a partnership of the FBI and the National White Collar Crime Center, stated in its annual report that there was $198.44 million lost by consumers in the fraud cases that they referred to law enforcement agencies in 2006. The average loss per complaint was just over $2500.00. Both buyers and sellers lose when online businesses are vulnerable to ill intentioned web users.
There are generally 2 types of fraudulent orders that are placed online. First there is an order that is being placed merely to check the validity of the stolen credit card information. A criminal will go to a website where he knows that the credit card is going to be billed immediately for products and services. They will place an order for something that is usually about $100.00 or less. Once the order goes through and the credit card is successfully billed, they know the stolen information is valid. Then they are free to place the second kind of order where they are actually looking to receive the products that they purchase with the stolen credit card information.
Currently, some of the most popular online fraud protection solutions include address verification, card verification number (CVC2, CVV2, CID depending on the card issuer), and IP geolocation. The downside to these solutions is that the address and card verification number can both be stolen along with the credit card number and IP addresses can be masked. 81% of online merchants also use manual order verification. Besides the increased costs associated with the extra time and staff that it takes to manually review the orders, it also slows down the order process and extends delivery times.
Traditional solutions allow the fraudulent order to be placed and then attempt to weed them out afterwards. The next generation of automated online fraud protection solutions deter the perpetrator from placing the fraudulent order in the first place. Taking the crook completely out of the equation allows online merchants to focus resources on fulfilling genuine orders and servicing current customers.
One of these next generation fraud protection solutions that is gaining popularity among online merchants is televerification. Televerification works like this: When the customer goes to place an order, they are asked for their telephone number. An automated telephone call is then placed to the customer and they are given a unique security code, either through automated message or SMS. They then enter that unique code into the appropriate place on the web site in order to proceed with their business. The process is quick and easy, yet the protection it affords businesses and their customers is extremely effective.
Requiring the confirmation of a workable, traceable telephone number lessens the attractiveness of that particular online business to ill intentioned users. Criminals are leery about providing a legitimate phone number that can be traced back to them. The benefits that are inherent to implementing any automated fraud protection solution for online merchants still apply: reduced chargeback costs, reduced manual verification costs and increased user confidence. The difference with televerification is that instead of catching the fraudulent order after it has come in, it stops them at the door.
An additional benefit of televerification is the ease of which it can be integrated into an online merchant's existing website. All it takes is adding a few lines of code to an existing site that will allow it to interact with a televerification provider's server. Most applications can be up and running within hours, not days or weeks like some solutions.
With eCommerce growing 20% or more each year, fraud protection for merchants and customers becomes an ever increasingly vital issue for the entire online community. Billions of dollars are lost every year due to criminals taking advantage of the anonymity that the Internet offers. Previously, online merchants could only try to weed the fraudulent orders out from the good ones as they came in. The next generation of fraud protection allows online merchants the opportunity to stop the fraudulent orders from ever being placed.
Digg
del.icio.us
Blink
Stumble
Spurl
Reddit
Netscape
Furl
Article keywords: online fraud protection
Article Source: http://www.articles2k.com
Brandi Cummings, an expert author on the unique issues facing online businesses, recommends checking out http://www.ReduceFraud.com, a leading provider of online fraud protection.
|
|
| Top Web Site Articles |
|
|
- 2). Protect Yourself with Spy Bug Detectors By : Shawn Davis
If you are involved in surveillance on other people, chances are that there are other people involved in surveillance on you. In order to detect when others may be listening in on you, it is a good idea to keep one or two different types of spy bug detectors. Because there are plenty of different bugs out there, and because they make use of a variety of different technologies, it is important to have at least two different types of spy bug detectors in order to sweep for multiple types of listening devices.
|
- 3). How Profits Motivates Virus Creators By : Richard Rogers
The motivation behind hackers has evolved noticeably over the last couple of years. Developing harmful viruses is less about “bragging rights” or satisfying the creator’s ego and is becoming more and more about generating profit or commercial return.
The destruction of data on your computer or corruption of programs you use is a common side effect and what people have traditionally associated with a computer virus.
|
- 4). What is web site monitoring all about? By : amabaie
What is web site monitoring all about? Here is Carl's story:
Carl returned to the office after a tough day of negotiations. He still was not sure if the crucial deal was on or off, but dinner would soon be waiting and he had just enough time left to check his emails and his phone messages.
He had twelve phone messages, every one of them urgent. Too late to call back right away; that would have to wait for morning.
|
- 5). Security Management - Software and hardware to keep your investment secure. By : Ventura
Security management is essential to any company. There are many different aspects of security management including Computer Network security, Entry Identification and Logging system and Fire Detection and Prevention.
Companies are increasingly using programmed magnetic or chipped Identity Cards for employees that allow access only to specific parts of the site.
|
- 6). Ten Steps to Reduce Your Risk of Identity Theft By : Howard Goff
You've probably heard about identity theft on television or read about it in the newspaper, and you may already be aware of the damage these crimes can cause victims and their families. What you may not know is how to protect yourself from these attacks. Below you'll find ten steps that can help you minimize your chances of becoming another identity theft statistic.
|
- 7). The Usefulness of Covert Listening Devices By : Shawn Davis
Covert listening devices are among the most useful pieces of spy equipment available. They are relatively easy to come by, and they can be very reasonably priced. Covert listening devices can allow you obtain information that you need, that you might not normally have access to. These spy bugs allow you access to the plans of others, and they can even help you protect yourself and gather information concerning things that affect you, that you may not normally be privy to.
|
- 8). The Modern Wild West By : Rob Sullivan1
They may think they are the Yosemite Sam’s of the modern world, but you are the New Sheriff in town! Marauders of today do not come moseying up bow-legged into your path with a six-gun slung across their hip telling you to, "Stick ‘em up, or else." Instead, today’s modern outlaws can be in and out of your life without a trace of you knowing what has happened.
|
- 9). Signs That Your Home Computer Is Infected by Spyware or Adware By : Richard Rogers
There are a number of indicators you can watch for which will suggest that your computer has been infected by spyware or adware. Please note that some of the symptoms listed below are not unique to just a spyware or an adware infection.
1) PC Performance – Both Spyware and adware consume your PC’s resource like computer memory. A bad spyware infection could dramatically slow your computer’s performance including causing your system’s to become increasingly unstable.
|
- 10). Identity theft basics By : Mansi gupta
Identity theft is one of the latest buzzword within our society in recent times. Identity theft refers to hiding one’s original identity and illegally misusing someone else’s identity. The person pretending to be someone else tries to make money at the cost of others and makes an abusive use of fake identity. The occurrence of this form of crime has increased partly due to the expansion in our communication network where people interact or know about only the existence of other person but have not met them person.
|
| New Web Site Articles |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 8). Cyberspace Samurai's Art Of Hacking By : Mike Cliff
If you acknowledge the foe and recognize yourself, you need not fear the result of a hundred battles. If you recognise yourself merely not the foeman, for every victory gained you volition also suffer a defeat. If you cognize neither the opposition nor yourself, you testament succumb in every battle." - Sun Tzu, The Art of War. Take the immortal words of Sun Tzu, cognise yourself.
|
- 9). Top 5 Reasons to Choose An Internet Filtering Appliance Over Software By : Jennifer
The need for organizations to monitor and control Internet usage in the workplace should be an accepted fact of doing business in a cyber-connected world. Statistics indicating that 30 to 40 percent of Internet use in the workplace is unrelated to work issues should come as no surprise. Neither should the report that 90 percent of employee computers harbor as many as 30 spyware programs.
|
- 10). Monitoring the International Web By : amabaie
One of the top website monitoring services in the world has announced that it's industry-leading network and website monitoring services can now be accessed in French, Spanish and German, as well as in the original English. Why this sudden interest in other languages?
"Many people in the English-speaking world think there is only one Internet – the English Internet," says Vadim Mazo, Chief Technology Officer for Dotcom-Monitor.
|
|
|
