MasterCard Designing Fraud Detection Tools for E-merchants
- MasterCard plans to propose a new real-time CNP fraud detection service to its e-merchants starting May 2012, Expert Monitoring Fraud Scoring for Merchants. The detection models have especially been designed for the e-commerce sector to cover wider periods, to better describe the users’ behaviour and release more relevant score boards.
- MasterCard’s tests have shown that merchants could save 15 to 30% in fraud costs if they were to opt for appropriate detection tools or through systematically rejecting all suspicious transactions.
- The card network is getting onvolved in fraud detection services applied to the e-commerce sector. Several independent and banking players could try to have a share in this market but only few actually address it today. In the US for instance the Identity Theft Resource Center (ITRC) has recently warned all companies having to deal with card data as in 2011 merchants and companies have witnessed an increase in their fraud-related losses (from 4.3% in 2010 to 12.9% in 2011). These losses can generally partly be accounted for by the absence of dedicated tools (see February 2012 Insight).
- MasterCard reminds other figures released in the Lexis-Nexis 2011 True Cost of Fraud Study mentioning an average 102 billion dollars in fraud in 2011 in the US: