Fraud prevention needs “400-plus rules”

With card not present fraud growing dramatically, existing processes used to tackle the problem are likely to be inadequate. According to participants in a Continental Airlines webinar, sponsored by 41st Parameter, half of systems currrently deploy fewer than 25 rules to flag fraudulent incidents, with 17 per cent using under 200.

Yet according to  Ori Eisen, founder and chief innovations officer of 41st Parameter, “any anti-fraud algorithm should consist of 400-plus rules in order to combat fraud efficiently.” He points out that CNP rose to £328 million during 2008, more than half of all card fraud losses in the UK.

“Although Chip and PIN and secure online payment systems like MasterCard Secure and Verified by VISA are useful tools in combating fraud, it is evident that there are still gaping flaws in current anti-fraud solutions currently in place – and predominantly with the number of rules used to flag fraud,” says Eisen.

He adds: “The standard fraud checks like address verification, card verification value (CVV2) match, shipping address and so on are just the tip of the iceberg. Organisations need more intelligent and intrinsic parameters, such as velocity that shows if multiple orders have been placed in a short period of time.”

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here