International Merchants that sell online are undersiege by criminals looking to profit from fraudulent transactions. According to a Lexis Nexis 2012 True Cost of Fraud report these retailers face 5 times as many attempted fraudulent transactions as their peers.
According to the National Retail Federation, fraud cost retailers and estimated $9 billion in 2012. For each $1 in fraudulent transactions, retailers incurred costs of $2.70. In 2012 the average fraudulent transaction was valued at $219 for online retailers.
Many online retailers have taken steps, such as credit card verification, in an attempt to prevent these fraudulent transactions. Leaders in fraud prevention are now integrating identify and address verification tools, browser protection technologies and automated transaction scoring that can augment security of credit card verification. These solutions also allow merchants to verify card-not-present (CNP) transactions. More importantly, by verifying the identity of their customers these retailers are able to confidently serve consumers in risky markets, knowing the transaction are not fraudulent and preventing them when they are.
Online merchants winning the battle against fraud, have seen benefits beyond improving their bottom line. Increased customer loyalty and customer acquisition mean that preventing fraud matters not just to businesses but the customers they serve.
At the Global Data Consortium we aggregate the best available international verification data such as identity, address, phone, email from in-country providers into our Worldview platform to help mitigate cross-border transaction risks.