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BizReport : Ecommerce archives : July 01, 2015

Top 4 tips to reduce holiday fraud

Between Thanksgiving and New Years retailers see a lot of retail fraud - from fraudulent returns to the use of stolen credit cards. There are ways retailers can protect themselves and their customers from online and offline fraud.

by Kristina Knight

"Good fraud detection should be about more than preventing loss. It should increase revenue by allowing more good customers through and providing a hassle-free shopping experience, especially during the critical holiday shopping season," said Steve Platt, Global EVP, Fraud and Identity, Experian. "To help our clients with this, we combine insights derived from device intelligence and digital behavior, with the contextual data about the event itself (e.g., transaction, application, login, etc.). We analyze millions of transactions per day, evaluate risk in real time and deliver responses in mere milliseconds. With this approach, our clients are catching more fraud and reducing customer friction, leading to fewer manual reviews and lower operational costs. It's a win-win-win."

First, don't use a one-size-fits-all approach. Experian's experts note that many merchants reduct fraud prevention rules and increase manual reviews to compensate for increased holiday traffic. This can result in fraudsters being identified as legitimate customers, however. Instead, they say brands need to invest in a fraud prevention software system that is tailored to their needs.

Second, use customer data across business channels. Rather than online using customer data within the online storefront, that data should be used across all channels so that the customer - and the business - have a singular, consistent view.

Third, dedicate a fraud prevention team. Employees who always deal with fraud prevention can help to ensure the customer experience. These teams can create strategy to reduce fraud and to deal with customer issues so that the overall experience remains positive.

Fourth, stay ahead of market conditions. The upcoming EMV deadline is one good example. Retailers who convert early will have systems in place that ensure a positive shopping experience for their loyal customers while at the same time will be able to test their new system against fraudulent purchases before the hectic holiday season.

The full infographic can be found here.

Image via Shutterstock

Tags: ecommerce, ecommerce fraud, ecommerce tips, Experian

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