“Online shopping will grow by 15% ($235) billion in 2009, 14% ($267) billion in 2010 and 11% (334 billion) in 2012 online” ~ Forrestors.
These figures are a clear indication that selling online is an excellent opportunity for any merchant to expand their customer database to include global audiences and add to their bottom-line.
There is however, one drawback ‘online fraud’. The increasing popularity on the internet as a shopping medium has made it an attractive target for unscrupulous individuals (hackers). These hackers (aka cybercriminals) piggyback on other websites in order to steal money and identities (card data) from unwitting online users. These hackers do not discriminate between small and big organizations, everyone is a target. Kingfisher Airline is one such example. During July 2005 and November 2006, Kingfisher Airline was defrauded of appx. 17 crore. (Source: The Times of India)
Online fraud can damage both your overall profitability and reputation. It also one of the main reasons behind abandon shopping carts, as users are reluctant to share their sensitive card information online. So preventing online fraud is a vital task for every successful eMerchant.
CCAvenue, the neutral payment gateway has developed a process that makes transacting online a calculated risk ‘Fraud & Risk Identification System & Knowledge Base’ (F.R.I.S.K.). The F.R.I.S.K engine was developed using a combination of best practices, leading technology and human interaction. It is built into the system and unlike most payment gateways is available free of any additional costs.
CCAvenue F.R.I.S.K is an unrivalled Heuristic Fraud Detection engine that provides an unprecedented level of risk detection that can help you to convert more valid orders automatically and reduces both expenses and potential chargeback losses. In June 2009, the risk mitigation processes used by the F.R.I.S.K. engine lowered the risk level to an insignificant 0.03%.
Maps every transaction against a comprehensive negative database built over the last 8 years
from fraudulent transactions that have taken place in over 90% of India's Merchants, who use the CCAvenue Payment Gateway.
Phase II: Assesses and verifies each transaction that passes through the CCAvenue payment gateway using over 150 variables such as Negative Database Mapping, High Risk Global IP Address Verification, Velocity Checks, Negative E-Mail Validation, Issuing Bank BIN Number Mapping, Zip Code and Telephone Validity Check etc.
Each transaction processed is scanned for risk factors and flagged as risk prone transaction on identification of risk, which is verified by our qualified 18 member strong Risk Management team
. Thereafter, processing the transaction is based on your own discretion.
To summarize, by combining the latest technology with human intelligence the CCAvenue F.R.I.S.K. engine warns you about online fraud and makes transacting online much safer.