CYBERSOURCE FRAUD
MANAGEMENT
e-Commerce Day
Bogota, Colombia
Daryl Williams
Manager, Sales Engineer
[email protected]
Kathy Reeves
Business Development Manager
[email protected]
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47% 48% 48% 51% 51% 52% 53% 62% 63% 64% 64% 68% 71% 72% 81% 60% 70% 80% 90% 100%
International Order Acceptance in 2009
% of Merchants Accepting International Orders From…
Over half of merchants accept online orders from
outside the U.S. and/or Canada**
In 2009 these orders represented on average 21%
of total orders up from 17% in 2008
h
a
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ts
Average # of Countries per Merchant
9
3
47% 48% 48% 0% 10% 20% 30% 40% 50% United KingdomAustralia Germany France Italy Mexico Spain Japan Hong Kong
Singapore Brazil China South Korea
Taiwan India
Q4b. From which of the following countries, outside the U.S. and Canada, do you accept online orders? Please select all that apply.
Results < 25% not shown Base: Merchants accepting international orders
**Note: 54% in 2009; 52% in 2008, 59% in 2007
Note: A list of countries was provided, but merchants were also allowed to add any country that was missing from the list.(The list of countries provided changed in 2008.)
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%
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h
Rules
Orders
Chargeback
Reject
Detectors
Automated Screening
Fraud Management Process
Management
Tuning &
Analytics
Manual Review
Fraud Rates in U.S./Canada
(Overall and by Online Segment)
R
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2
%
Overall
Digital Goods/
Svcs
Media &
Entertainment
Apparel/
Jewelry
Health
Consumer
Electronics
Household &
General
Merchandise
Education/
Government
In
te
rn
a
ti
o
n
a
lF
ra
u
d
R
16%
Manual Review
Top Priority Strategy / Area of Focus 2010
60%
Automated
Detection
(tasks / workflow)
20%
Process
Analytics
2% Outsourcing
Rules
Orders
Chargeback
Management
Reject
Detectors
Automated Screening
# Detection Tools = 7
g
Tuning &
Analytics
Manual Review
50% say
“Fraud is cleaner”
86% 35% 16% 33% 80% 10% 4% 24% 3% 12% 12% 5% 17% 14% 9% 5%
CVN (Card Verification Number) Address Verification Service Postal address validation services Verified by Visa/MasterCard SecureCode Telephone # verification/reverse lookup Paid for public records services Credit history check Out-of-wallet or in-wallet challenge/response
Automated Fraud Detection Tool Use
Fraud Detection Tool Usage
% Currently Using % Planning to Implement
Merchants $25M+ Online Revenue
2009
Validation Services
Your Proprietary Data/Customer History
75% 66% 53% 41% 19% 52% 23% 26% 45% 61% 18% 19% 6% 19% 12% 5% 12% 10% 17% 14% 9% 19%
Customer order history Negative lists (in-house lists) Order velocity monitoring Fraud scoring model-company specific Positive lists Customer website behavior analysis IP geolocation information Device "fingerprinting" Shared negative lists-shared hotlists Multi-merchant purchase velocity Other
Purchase Device Tracing Multi-Merchant Data/Purchase History
Validation Services
No Silver Bullet
% Merchants Using Tool that Selected it as
One Of Their “Top Three” Most Effective
2009
26% 20% 19% 16% 9% 16% 15% 10% 2% 32%Paid for public records services Contact customer to verify order Credit history check Verified by Visa/MasterCard SecureCode Address Verification Service CVN (Card Verification Number) Telephone # verification/reverse lookup Out-of-wallet or in-wallet challenge/response Postal address validation services Contact card issuer/Amex CVP
Your Proprietary Data/Customer History
Purchase Device Tracing
Multi-Merchant Data/Purchase History
Q10c. Of the tools your company currently uses to help detect online payment fraud or assess fraud risk for online orders, please select the most effective. Please select up to three.
Base: Merchants with annual online sales ³$25M who use tool : automated or manual (excludes None)
*Caution: small base
37% 31% 22% 16% 7% 22% 21% 36% 11% 14%
Fraud scoring model-company specific Negative lists (in-house lists) Customer website behavior analysis Customer order history Order velocity monitoring Positive lists
IP geolocation information Device "fingerprinting"
Multi-merchant purchase velocity Shared negative lists-shared hotlists
