There’s a lot to be vigilant about for businesses between now and the year 2020. As we migrate to a world of real-time fulfillment and digital downloads, the response time to fraud attacks is constricting. Data security breaches and scams are becoming more sophisticated with card payment fraudsters elevating their game and empowered by technology.
Online payment fraud just won’t stop growing. Card fraud is rapidly escalating at the POS and in CNP channels, accounting for nearly 70% of all card fraud in many developed countries. EMV will not result in an elimination of counterfeit fraud, nor will EMV spell an end to database breaches; it will simply encourage fraudsters to adjust their conspiracy.
Why is CNP Fraud Skyrocketing?
The question here is what factors are responsible for an astounding rise in CNP payment frauds? The main driving forces being –
Increasing money transfers
Escalated use of mobile payments
Frequent data breaches
Influx of post-EMV CNP Fraud
The aforementioned driving forces make sense for growing rates of the fraud, but have little relevance when it comes to the types of fraud responsible for over 70% of fraud losses. The misuse of chargeback rights is the leading cause of fraud losses, while actual payment fraud committed by identity thieves and other criminals still result in over 30% of merchant’s overall fraud losses.
It’s Time to Fortify Your Business against E-Commerce Fraud
Protecting businesses from the expected surge of ecommerce fraud will be of great importancein 2018 and beyond. Fraudsters are getting more determined, and can no longer be stopped with the standard anti-fraud bolts. Regular risk and compliance assessments are simply not enough for today’s clever fraudsters. Advanced fraud management solutions will be required to safeguard merchants from fraud, especially as the number of online retailers grows exponentially.
Human eye review gives insights about fraud patterns and genuine customer behavior. But the manual review is costly, time-consuming and leads to high false negatives. Additionally, training the personnel to manually review transaction is time-consuming and expensive. Manual reviews also increase the time required to fulfill the order. Customer frustration can creep in, as the customer needs a quick solution.What is the best solution that is instrumental in solving some of the important business problems?
Machine Learning + Human Intelligence to Combat Fraud
Machine learning in combination with a review by the human eye is taking its root in all spheres. Technologies are based on machine learning algorithms that enable them to react and respond in real-time. Machine learning technologies can collect and organize massive amount of information to make predictions in amalgamation with capabilities of manual processing. The fusion of human intelligence and artificial intelligence will increase organizational efficiency and dramatically reduces the likelihood of fraud to happen.
Now that Machine learning is taking the center stage, a combination of machine learning with human eye review has become indispensable for fraud mitigation. This focus certainly lies on creating solutions with a fusion of human intelligence and artificial intelligence and how it is bound to increase organizational efficiency and dramatically reduce the likelihood that a critical mistake would be made.