News & Events - News for October 1, 2009

October 1
2009
Frenetically Fighting Fraud - From STORES Magazine

Overstock.com able to change, add rules to prevention application in real time

E-commerce retailers are constantly at risk from fraudsters, especially those sophisticated enough to assume multiple false identities. To protect themselves, many e-tailers use fraud prevention tools to alert them to potential risks. To more fully evaluate those risks often requires long hours by investigators, who manually review customer orders that have been flagged as risky.

Online merchants reported an average fraudulent order rate of 1.1 percent in the United States and Canada last year, according to Cybersource’s 2009 Annual Online Fraud Report. The average number of online orders reviewed manually has fluctuated between 22 and 27 percent the last six years, according to the report.

The manual review rate is dependent, in part, on the robustness and flexibility of the retailer’s fraud prevention application.

For complete story featured in STORES Magazine go to:

http://www.stores.org/LossPrevention/2009/10/LPiEdit02.asp