The State of Global Credit Card Fraud


You constantly hear about new ways for individuals
to protect themselves against credit card fraud, but what are the problems
businesses suffer due to this fraud?More and more purchases are being
made by credit card either online or by telephone. Frequently, items are
shipped before credit card fraud is detected, and the business owners lose both
the money from a potential purchase and the goods themselves. Protecting your
business against credit card fraud is critically important.

Unlike in most nations around the world,
where credit cards are required to have an electronic chip, businesses in the
United States are vulnerable to credit card fraud in person due to the far less
secure magnetic strip in use here. Despite this flaw, a strong fraud prevention solutioncombined with certain basic precautions can reduce this
risk. Requiring a drivers license and other types of ID verification are a big
help toward preventing fraud.

The most difficult type of credit card fraud to
detect purchases made either over the phone or Internet is when the card is not
physically present, frequently called CNP. These sales are inherently more
risky, since the merchant cannot verify identity without a good identity
verification system. An additional preventive measure is for merchants to only
ship to an address approved by the cardholder. Merchant banking systems offer
simple methods of verifying this information.

Identity theft is also the cause of significant
financial loss. This situation can only be effectively controlled with a good
electronic and identification system. IdentiFraud Consumer is the
one-stop solution for consumer fraud prevention. By utilizing Age Verification,
Dynamic Knowledge-Based Authentication, and various other consumer data, EVS
can compile an Individual Fraud Score to understand the risk associate with
each customer. The threshold can be adjusted on the score ranking to only allow
the trustworthiest clients to performance credit card transactions. This
coupled with any of our other solutions readies a company for the fight against
the threat of credit card fraud.

[Contributed by EVS Marketing]

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