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Fraud balance: attract customers while minimising fraud & costs

Visa subsidiary Cybersource’s ‘2019 Global eCommerce Fraud Management Report’ tackles the problem of how to achieve the difficult balance of how to have rigorous fraud prevention processes and systems to minimise fraud loss while still being attractive to customers. The report is based on the views of nearly 2,800 fraud management specialists, representing organizations across 34 countries. It examines the characteristics of the leading fraud management organizations and found that it requires the careful balance of three interdependent dimensions:

Source & Copyright©2019 - Cybersource

The leaders

The survey found that leaders, the ones that placed equal importance on all three areas, were only 18% of the respondents and leaders:

  • Have a chargeback rate four times lower than the other respondents
  • Are 2.5x more likely to rate eCommerce fraud management as extremely important to their organization’s business strategy
  • Find it less of a challenge to respond to emerging fraud attacks
  • Have a significantly greater range of capabilities that give them the agility to respond to the dynamic landscape they operate in
  • Have a greater capability to use data effectively for fraud management
  • Are less likely to conduct a manual review and spend less in this area
  • Allocate less of their annual eCommerce fraud management budget to order review staff.

The tips

The report gave five tips for effective fraud management automation:

  1. Use an array of effective fraud management tools that include validation services, proprietary data, multi-merchant data, and purchase-device tracing
  2. Maintain positive and negative lists to allow seamless processing of known genuine customers, and automatic filtering of known fraudsters
  3. Create customer-centric rules to allow genuine customers to pass through unaffected—ensuring that these rules are continually reviewed and recalibrated
  4. Streamline the review process by using an effective case management system that brings together all the tools reviewers need to review orders efficiently
  5. Ensure that there is a feedback loop so that insights from the review team can be fed into your automation rules and positive/negative lists.

Key performance indicators

The report contains seven different views on KPIs. The global KPI table showed significant differences between the regions:

Source & Copyright©2019 - Cybersource


CTMfile take: This overdesigned report contains important stats on where fraud occurs in e-commerce and how leaders perform in managing the balance between fraud prevention and customer retention. How does your company’s performance compare to the leaders?


This item appears in the following sections:
Fraud Prevention
ID Systems & Services in Fraud Prevention
Minimizing Fraud Procedures
Minimizing Payment Fraud

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