Payment Asia Preemptive Fraud Management Practices for Merchants
About Anka Yip: Anka Yip, a professional web programmer and system developer, is the IT Development Manager of Payment Asia Technology Limited. He has experience in tailor-making enterprise solutions for years. He is now leading his IT development team to integrate emerging technologies into traditional business models.
Anka Yip | IT Development Manager | Payment Asia
Ecommerce is no more merely the privilege enjoyed by big
Merchants and enterprises had to spend USD 2.66 and around
merchants and enterprises that have massive infrastructures
2% of revenues on average for every dollar of fraud, and the
and resources. Small businesses carrying a smartphone or tablet
fraud cost rose to USD 3.48 if the transactions are about digital
are already enough to join the endless network of ecommerce.
goods sales or conducted primarily through remote channels,
The growth of ecommerce, however, arouses the concern of
accounting to about 2.5% of revenues on average. The report
fraudulent transactions, implying that effective and qualified
simply shows fraud is a lucrative business.
fraud management is also a must in minimizing the lost suffered by merchants or businesses. Considering the special situation in
The two generations of fraud monitoring
the Chinese market, Payment Asia (PA) shifts the ‘fraudgate’ from
PA is a veteran in dealing with fraudulent transactions in the
standing at the rear to staying at the forefront by preemptively
internet world, where the legal framework of commercial and
screening out suspected transactions.
financial criminal procedures is still very challenging. When facing online fraud, merchants may often choose to surrender, as
The management of fraud
they do not find it worthwhile to spend unscalable time and legal
Fraud is commonly seen in the business world, and it is unavoi
cost to report and claim the loss. PA is then determined to help
dable in the Internet as well. From phishing, identity theft, and
the vulnerable merchants by identifying potential perpetrators in
pagejacking to merchant identity fraud, perpetrators would not
preliminary stages to lower the risk of fraud.
waste any chances to take advantage of the stolen money, personal property and sensitive information. The exponential
In the beginning, PA implemented a fraud scoring system and
growth of ecommerce could transfer all the black and white
offered some basic rulesets based on the database provided by
transaction records into computer servers, but it also provides
merchants. Rulesets changed from time to time. Our data analysts
room for hackers and cybercriminals to deprive the information
successfully and continuously identified the characteristics of
via the Internet. What businesses could do is take precautions
known fraud cases and updated our rulesets. We might then block
and keep monitoring online fraudulent activities. Thus, fraud
the high-risk fraud transactions based on the scores recorded by
management comes to exist and becomes the core of ecommerce
our system, and later on follow up with merchants to find out more
solutions.
about their involved clients. This is the first generation of PA’s fraud management practices for merchants. ➔
The 2017 report of LexisNexis True Cost of Fraud evaluated the effect of fraudulence activities across private businesses and government agencies in the US, and especially in ecommerce, financial services, and digital lending.
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PAYMENTS AND COMMERCE MARKET GUIDE 2018 - 2019 | (Cross-border) Ecommerce