Managing eCommerce fraud is extremely challenging, leaving many merchants stuck between elevated exposures and disrupting valuable customer experiences. Going it alone means merchants must invest heavily in fraud detection tools, collaborate with third-party agencies, and dedicate numerous resources to mitigating fraud. A daunting task for sure. However, digging a little deeper, there is an even more troubling trend at play.
Most eCommerce fraud is perpetrated by criminals using compromised information to make unauthorized purchases. However, there are much less suspect customers to watch out for—customers with impeccable digital risk profiles that pass every fraud screening test but make authorized purchases and later claim them as unauthorized. It’s difficult enough to effectively sniff out the traditional fraudsters, much less battle disputes from “good” customers who simply don’t want to pay for their merchandise.