Preventing Fraudulent Online Transactions with IP Intelligence
Companies collectively lose billions of dollars each year globally to online fraud. In today’s e-business ecosystem, online fraud is recognized as a pervasive threat that affects companies across all industries, regardless of size. Once veiled in secrecy, fraud, and the manner in which businesses address it, is now in the spotlight due to the proliferation of media coverage and increased market and consumer awareness. Beyond the monetary losses for companies, pressure from industry regulators, the media, and customers are putting businesses in a defensive stance. Unfortunately, many companies are making hasty decisions regarding their online fraud-prevention methods in favor of completing the quick sales conversion.
IP Geolocation Preserves the Customer’s Online Experience
The continued rise in digital transactions will only result in more prolific data breaches than ever before, increasingly sophisticated fraud attacks, and new cashless and card-not-present (CNP) payment methods. Younger demographics will drive online spending growth and will continue to press the envelope for faster checkout methods. And companies will find themselves at the crossroad of security and efficiency.
As fraud-prevention solutions advance to address new threats, companies will continue their struggles to engage and succeed in an evolving landscape they don’t fully understand─taking their focus away from selling products and retaining customers. Companies will need greater hands-on help to protect against and mitigate online threats to revenue. How can merchants identify genuine customers at the earliest opportunity, while managing fraud effectively? With IP-based geolocation technology. Armed with real-time information based on users’ geographic locations, companies of any size can successfully remove the anonymity barriers unique to the Internet─protecting their online assets, customers and reputations.
Take a More Proactive Approach to Online Fraud Prevention
Online fraud can take many shapes, from account takeovers on banking or social media sites to CNP fraud on retail sites. Many organizations unexpectedly find themselves on the defensive, responding to incidents only after the fraud has occurred and often because customers have contacted them after discovering abnormal activity within their own accounts. While offering restitution to customers goes a long way in securing loyalty, a single fraud incident can seriously damage the reputation of a company, especially in today’s socially connected universe where viral communication channels quickly spread the word on how effectively—or ineffectively—an organization deals with instances of fraud. Online businesses are only successful when users are confident that the channel is safe and secure.
Beyond geography, NetAcuity identifies up to 30 data points about users including connection speed, Internet Service Provider (ISP), domain, proxy type, time zone, and more. By providing IP-based information in real time, NetAcuity offers a cost-effective, easy-to-deploy tool for proactive online fraud detection and prevention that helps identify suspicious transactions instantly.
Benefits
- Balance Risk Management – Leverage geolocation information to determine which transactions to review and which to allow, creating a balance between blocking legitimate customers and decreasing losses from fraud.
- Shore Up Fraud Controls – Leverage real-time user information to strengthen identity verification, such as flagging account access from unusual or high-fraud areas.
- Detect Proxies – Identify access from proxies, which are notorious for allowing users to remain anonymous and avoid detection─a major red flag in online fraud detection and prevention.
- Strengthen Digital Profiles – Expand user profiles by adding IP Intelligence-based attributes that allow detection of out-of-the-ordinary access and transactions based on normal user patterns.
- Reinforce the Customer Experience – Simplify and make the customer authentication process more efficient while remaining invisible to end users.