Fraudulent credit card orders have become a significant source of lost income for retailers and with online retail spending on the rise, fraudulent activity is likely to continue to increase. According to the 2010 LexisNexis® True Cost of Fraud Study*, conducted by Javelin Strategy & Research, retailers are consistently experiencing more than $100 billion in annual fraud losses, which not only affects the bottom line, but also affects future revenue. The study also shows more than one in three consumers who were victims of fraud will avoid certain merchants and one in four reports that they will spend less money. Chargebacks, which occur when merchants are held responsible for the cost of disputed charges from transactions where the credit card used, is not present, result in the loss of both revenue and merchandise. This threat puts added pressure on companies to leverage a fraud review process that is fast, precise and keeps operating expenses in check.
“In today’s online retail environment, it’s imperative that businesses have the tools in place to effectively identify and mitigate identity fraud to help protect both consumers and the organization itself,” said Dennis Becker, vice president, LexisNexis. “To address this need, today we’re introducing a comprehensive online fraud solution which provides risk managers and analysts with the ability to isolate and process exceptions quickly and effectively through the order management process and allow them to focus their attention on fraudulent transactions, while fast-tracking valid orders through fulfillment.”
The next generation software is the only offering on the market that provides full integration with LexisNexis’ public records database and its unique data linking technology. The robust platform connects LexisNexis’ workflow manager, LexisNexis® Retail Fraud Manager powered by Kount®, with its identity fraud risk score program, LexisNexis® Chargeback Defender® Risk Score:
- Retail Fraud Manager is a configurable Software-as-a-Service (SaaS) where users can access through the Internet to control the identity fraud review process from point-of-sale through the final decision and disposition of an order. The streamlined system organizes and consolidates data to improve the efficiency of fraud risk assessment. Users will benefit from greater productivity and increased margins through lower overhead and fewer expenses incurred by manual review tasks.
- Chargeback Defender Identity Scoredetects potential fraud using an identity-based score that verifies identification data for both the billing and shipping address. It operates in tandem with the Chargeback Defender Device Score powered by Kount®,which analyzes the device being used to place online transactions, assessing such factors as IP address, Device Fingerprinting and Proxy Piercing. The two complementary approaches to identity risk scoring are combined in the new solution to isolate transactions that have the greatest probability of being fraudulent.
Becker adds, “One of the great benefits of this solution set is that it can be tailored to meet the specific fraud prevention needs of the user. In addition, automating the review process will help give businesses the freedom to better utilize its talent and existing resources to address more complex, specialized tasks.”
For more information on the Retail Fraud Manager and Chargeback Defender, visit www.lexisnexis.com/risk/retail-ecommerce.
*For a copy of the 2010 LexisNexis® True Cost of Fraud Study, please visit http://www.lexisnexis.com/risk/2010RetailFraudStudy.
Kount detects and prevents fraud for merchants, financial institutions, online communities, and other businesses with fraud issues that negatively effect corporate image, financial performance and customer satisfaction. Kount’s proprietary technology has reviewed hundreds of millions of transactions and provides maximum protection for some of the world’s best-known brands. For each transaction, Kount’s “decisioning” engine analyzes hundreds of relevant variables and activity across the globe in real time, then delivers a highly predictive risk assessment in less than one second. Companies using Kount solutions have greater visibility into fraudulent activities, allowing them to control risk associated with fraud while maximizing sales and dramatically reducing the need for manual review. For more information about Kount, please visit www.kount.com.
LexisNexis® (www.lexisnexis.com) is a leading global provider of content-enabled workflow solutions designed specifically for professionals in the legal, risk management, corporate, government, law enforcement, accounting, and academic markets. LexisNexis originally pioneered online information with its Lexis®and Nexis® services. A member of Reed Elsevier [NYSE: ENL; NYSE: RUK] (www.reedelsevier.com), LexisNexis serves customers in more than 100 countries with 15,000 employees worldwide.
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions is the leader in providing essential information that helps advance industry and society. Building on the legacy of proven LexisNexis®services from the past 35 years, our cutting-edge technology, unique data and advanced scoring analytics provide total solutions that address evolving client needs in the risk sector while upholding high standards of security and privacy. LexisNexis Risk Solutions serves commercial organizations and government agencies and is comprised of several affiliated corporations, each offering premier customer-focused solutions. For more information, visit http://www.lexisnexis.com/risk/.