Given the Internet's built-in anonymity and ability to execute transactions from anywhere, authenticating the identity of the customer can be fairly difficult. Traditional tools such as AVS and CVV have become less effective since sophisticated fraudsters generally have access to complete credit card information of the individual they are trying to impersonate. Other authenticating solutions – such as 3-D Secure - may require the customers to take additional steps, disturbing the seamlessness of the purchasing experience. Often, this leads to shopping cart abandonment.
SecureTrading Fraud Score offers you the ability to implement a fraud detection solution from a different angle, through IP reputation. Geolocation is the ability to determine where online customers are physically located based on their IP addresses. With geolocation, you can use information you already have - the user's IP - to non-intrusively determine where your customers are physically located. This can be used effectively to detect potential fraud by analysing the differences between the user location and the billing address. Building on geolocation, IP reputation provides relevant risk indicators on given IP addresses.
Rather than building higher walls for individual sites, SecureTrading have joined the minFraud Network, a distributed protection system that allows thousands of participating members to indirectly share non-personally identifiable but relevant fraud information for mutual protection. The minFraud Network complements the data that is being provided through IP reputation. If suspicious behaviour is uncovered at one merchant site, changes are made to the minFraud system to protect other merchants within the minFraud Network in real-time. Additional feedback from merchants helps serve as warning signals to others within the network. Since chargebacks can happen for a variety of the reasons, often not related to fraud, the minFraud Network reviews all feedback to ensure that only appropriate fraud data is incorporated into the network.
The combination of IP reputation and the minFraud Network provides you with an ongoing and long term strategy against fraud. Merchants that have implemented minFraud have seen a large reduction in costs associated with fraud and chargebacks.
Again the service is available as a pay as you go service, however, as the IP address needs to be passed to the SecureTrading Fraud Score system, only user’s of the SecureTrading API can access the service.
