PART 1: The problem of fraud is greater (AND DIFFERENT) than you think
Today’s online payments experience is powered by dozens of unique tools – from payment gateways to fraud detection services and checkout tools. In the enterprise ecommerce space, this approach is called “layering,” in which business layer on suites of different tools to create “robust” payments and fraud detection stacks. [Gartner]
The results, however, are abysmal, especially when it comes to fighting fraud. In spite of the proliferation of tools for preventing and managing fraud, the fraud problem continues to grow. [Experian] In this post, the “fraud problem” refers not just to fraud loss, but also to the cost of “false positives”, or customers falsely rejected for fraud concerns, as well as the labor and time overhead of having staff and software allocated to reviewing orders.