Menace of online fraud

CyberSource Corp.’s Seventh Annual Online Fraud Report reveals that with e-commerce is growing at 20% or more per year, dollars lost to fraudulent orders rose to $2.8 billion in 2005 from $2.6 billion in 2003. Soaring transaction volumes in rapidly growing faceless e-commerce environment pose a major challenge for web merchants to screen more and more online orders- a task which can not be efficiently accomplished with standard Fraud management and verification tools available in the market as fraudsters are becoming more sophisticated and skillful at manipulating any loophole they can exploit. This is evident by high fraud rates that continue to plague e-commerce Web sites. According to a report by Verisign (02/2004) E-commerce merchants reject as "too risky" some 7 percent of all orders placed online during the holidays, with most being turned down because of questionable credit card numbers or suspected identity theft. Since many of those rejections are generated by automated systems, e-commerce vendors miss out on some legitimate sales that were for some reason misconstrued as fraudulent.

61% of consumers say that they have privacy and security concerns that make them hesitant to give out credit card information online.(Forrester Research 07/2004).

When consumers who have not made online purchases were asked what would persuade them to buy online, 53 percent cited more secure payment options. Payment security was chosen over price by more than a 2-1 margin!( PaymentOne 05/07/2003 ).

The CyberSource Corp.’s survey lays emphasis on the necessity of manually verifying the authenticity of each transaction to prevent fraudulent orders from getting approved . It turns out that only 24% of the 404 online merchants surveyed say they have budgeted to boost manual review staff this year to support higher order volume. For a majority of e-businesses conducting manual review in house is not feasible due to high cost of staffing which results in costly authorization and charge back fees along with loss of inventory.

We verify each transaction manually !

Our Payment Verification Service consists of trained operators who call up (anywhere in the world) each customer using VoIP and manually verify each transaction. Our call logging services also provide an opportunity to record the transcript of the phone conversation in order to prove that the customer actually made a purchase and can't later decline it as it sometimes happen.

Such manual verification reduces the possibility of fraudulent charges, and charge backs to almost 0%, and is cost efficient for all businesses selling online (downloadable or physical goods).

How it works:

1. After placing the goods/services in the shopping cart, the customer fills out registration form and continues to check out.
2. A message pops-up on the screen requesting the customer to make his/her phone line available.
3. Our operators call the customer up within seconds of receiving the order and professionally introduce themselves as your website representatives. They ask the customer if he/she has placed the order, and verify the credit card details.
4. If the customer confirms placing the order , the operator compares the location of the customer with the location of IP address to further validate the authenticity of the transaction (this procedure is optional and is utilized only at your discretion) . Once the operator is thoroughly satisfied, he allows the transaction to be completed.
5. If the customer denies placing any order, the transaction is immediately blocked by the operator.
6. In the event of mismatching telephone location and location of customer's IP address depending on your website's rules and regulations, the customer either aborts checkout procedure or asks customer if he/she want to try again.
7. If the operator fails to establish a telephone connection, an error message pops up on the screen and requests the customer to try again. The Entire process takes between 1-2 minutes and efficiently plugs “profit leaks” in terms of valid order rejection and fraud acceptance.