eCommerce Fraud Management 101: Protecting Your Payments
How Big is the eCommerce Fraud Problem?
Good fraud tools and technologies exist today to help merchants fight fraud. Wouldn’t it be great if all you had to do was buy one?
But eCommerce fraud management relies on a process that combines technologies and human intelligence. The goal of the process is two-fold: to enable fraud prevention and to promote sales.
Which requires a delicate balancing act only humans can deliver.
Fraud detection tools rely on machine learning-based AI algorithms to determine transaction legitimacy. If not properly “taught,” calibrated, and monitored, false positives reject too many sales.
Merchants in turn lose too much revenue due to suspected fraud and may lose new customers. According to SecuredTouch, around 33 million or 15% of adults in the U.S. are blocked incorrectly at least once annually, due to false-positive readings.
Many — including 66% of repeat mobile users — won’t return to the same eCommerce store to try again. A big price for merchants to pay.