Credit Card Fraud Prevention Web Service - business opportunity?

[david jones]

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

[dcomiskey]

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.

[InfoSourcing]

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 …