Credit Card Fraud Prevention Web Service - business opportunity?

Hi all,

It comes to my mind whether fraud detection web services can be a market opportunity. One of the research I had study recently is on Fraudlabs.com at http://www.fraudlabs.com. It accepts common input parameters such as IP address, email address and billing address and return fraud analysis results together with fraud score in real-time. Is this can apply to the business trend nowadays?

David

There's definitely an opportunity out there. CC fraud is becoming pervasive across the Web, along with ID theft. Even careful people can get hit. I did last week.
There was an article in the WSJ last week about a jeweler who has been online since 1998. His first order was fraudulent. He was good at spotting the frauds for a long time, but it's become so bad, he now has one full time employee dedicated to fraud now. If there's one thing that is going to hurt e-commerce in general, it's CC fraud.

Web Services by itself is a trend for future e-transactions. As we move in this direction we can harness the power of extracting valuable information from web instead of building it...

A credit card payment gateway such as Verisign’s PayFlow Pro provides options to prevent fraud on e-commerce transactions …

To prevent fraud, implement this simple business rule
a) Always authorize the card for a dollar amount and check against billing/shipping/other address of the shopper
b) Address verification – check for address line and zip code if any failures then raise your security handle
c) Check CVV2/CSC/Security code to identify if it is not a stolen card

If the shopper is still able to get through the system, then your bank/issuer of the card has fraud monitoring system which analyzes the purchasing behavior and will track down easily.

I would advise for shoppers to set an email alert on their credit cards (let’s say $500 and above) transaction, so they get email notifications if any transaction occurs, check with you credit card company if they permit such a feature, I have created an email alert on Bank of America website...

Fraud has to be prevented from all sides - merchant, shoppers and banking organization …