Key considerations to protect your online business when expanding into new territories
How to fight fraud when going global
by Carl Clump, CEO of Retail Decisions (ReD)
(PaymentsMarket) - Any business looking to expand will cast a hungry eye to the internet. After all, it’s the doorway to an international shopping mall, and the potential rewards of e-commerce are huge. But as online retailers are quickly discovering, the moment you set up stall for world trade, you can also be putting out a welcome mat for fraudsters.
Card fraud is a cross-border crime and nothing evolves faster than a new scam. The criminal underworld constantly colludes to invent fresh ways to steal goods and services from merchants around the world, and relentlessly seeks out and exploits any weaknesses in an e-tailer’s fraud prevention armoury.
So it’s vital that online retailers looking to capitalise on e-commerce and expand their business overseas should make it a priority to review their fraud prevention strategy. It’s crucial to have a robust multi-dimensional approach which is continually alert to fraud developments in all parts of the world and isn’t just keeping pace with emerging card crime, but is ahead of the conmen.
In-house or off-the-peg solutions aren’t enough. Fraudsters using stolen or cloned cards work differently from country to country, which means that a fraud prevention strategy which might work effectively in one place will be futile in another. A fraud prevention system which only looks for patterns detected in one geographic location will miss crucial methods of attack being used in other parts of the globe. Simple scam-spotting isn’t enough. A truly effective fraud prevention system needs to be able to predict as well as protect, and to reliably detect potential fraud without unnecessarily rejecting bona fide customers ‘just to be on the safe side’.
One of the key tools used to identify fraud is a pattern detection engine, but this is only as good as the data fed into it – and the more detailed and international the information the better. ReD has the world’s largest online screening databases which contain millions of suspicious data elements, pooled from every corner of the world. This data covers all types of businesses, including retail, travel, gaming, telecommunications, banking and the petroleum industries, providing a global overview of the ploys and tricks emerging across the planet which is crucial in thwarting card fraud.
An in-house fraud prevention system will be restricted to a narrower, more insular, vision. However, a system with a more sweeping, transglobal outlook will be able to differentiate between an authentic transaction and a dubious one in the blink of an eye.
ReD Shield® is a ‘real-time, all-the-time’ fraud prevention solution. Its cutting-edge system, bespoke for each client, instantaneously identifies and prevents fraudulent transactions, while maximizing good custom - and so increasing revenue. It also saves the retailer money on on-going operating costs by removing the need for investment in an in-house fraud prevention system. The result: less fraud, more trade and lower costs.
With its international presence and a vast customer base embracing many industries, ReD has a unique world view of online fraud activity, having screened some 19 billion transactions across 172 countries for its international blue chip clients last year. ReD is also the only payment fraud prevention group with offices spanning six continents, which combined with its in-depth knowledge of country, sector and client, ensures that no in-house system or local provider can compare.
Online retailers looking to grow must be able to sell their goods in the global marketplace, but many are reluctant to target new territories because of concerns about fraud. Now e-tailers can be reassured that with the right protective shield they can confidently throw their business net wider than ever before.
Notes for editors:
Retail Decisions (ReD) is a world leader in card fraud prevention, payment processing and card issuing. A specialist supplier to the payments industry worldwide, ReD has over 21 years experience in the fraud prevention market. Its blue-chip international clients come from the global telecommunications, retail, travel, petroleum, banking and the broader e-commerce sectors. They include Air China, Coles, Comet, John Lewis, Singapore Airlines, Shell, Shoprite, Target, Tesco, Chevron, T-Mobile, Virgin Mobile and Walmart.
The company has offices in Australia, China, South Africa, United Kingdom, and United States, with representation in India, Korea, Japan, and South America.
Carl Clump, CEO and Kami Boyer, Head of Global Marketing - Retail Decisions (ReD) Ltd
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