This advance enables merchants to conduct more accurate analyses of their inbound orders, including comparison of those orders to the over 60 billion transactions Visa and CyberSource process annually, including orders that were confirmed to be fraudulent. Data insight derives from transactions across multiple payment types and from merchants worldwide, spanning online, call center, mobile and POS sales channels. The transaction data is supplemented by 200 validation and correlation tests. This solution effectively expands the depth and breadth of transaction pattern visibility.
The new development comes at an opportune time. eCommerce merchants say fraud became more sophisticated and harder to detect in 2010(1), and this challenge is likely to grow. 90% of online thieves are now associated with organized crime(2), and “botnet” infections (software enabling fraudsters to secretly control innocent consumers’ computers) are growing at a rate of approximately 200,000 per day(3). The ability to accurately detect fraud in such a sophisticated criminal environment requires correlating vast amounts of information to detect subtle anomalies. The enhanced CyberSource service addresses this issue.
“Data is the lifeblood of fraud detection,” said Michael Walsh, CyberSource President and CEO. “When Visa acquired CyberSource, one of the stated goals was to deliver a new level of fraud prevention to online merchants, enabled by our end-to-end view of electronic transactions, worldwide. We are now delivering exactly that.”
How it works: When an inbound order is received, CyberSource Decision Manager simultaneously correlates attributes of that order against the data, device insights and validation tests generated from transactions processed by Visa and CyberSource. These results are then automatically evaluated by merchant-established rules, and the order is routed for fulfillment or suspended for manual review. This entire assessment takes place in appr approximately two seconds. The result is better fraud detection accuracy: “The power comes from the ability to correlate more order data and more truth data. The result for merchants is earlier detection of new fraud patterns and better informed decisions on all orders,” said Andrew Naumann, Director, Product Management, CyberSource Risk Solutions.