Australia experienced more than $417 million in credit card fraud during 2016 – a figure that’s more than doubled in the last 6 years. Protect your business and your consumers.
Originally both American shopping traditions, Black Friday and Cyber Monday have gained considerable popularity in Australia over the last few years. They’ll be swiftly followed by Christmas, Boxing Day and January sales – so the next few months will definitely be among your busiest periods for retailers.
But, along with an increase in sales comes an increase in the potential for fraud. The Christmas season is inevitably a festive season for fraudsters, who take full advantage of the increase in volume and traffic.
While counterfeit and skimming fraud remains low in Australia by international standards, it did see an increase in 2016. In total, online credit card fraud in Australia last year amounted to a staggering $417.6 million dollars – more than double what it was in 2011.
During this busy shopping season, a small adjustment in either direction can have a huge impact on the bottom line. Retailers often face the temptation to go one of two ways:
- The first is to ramp up your risk settings and treat every transaction as suspicious, but this comes at the cost of conversion rates. Many retailers report a considerable increase in their risk refusal rates during this period.
- The second is to accept fraud as an inevitable side effect of this peak period and lower your risk settings. This will lower your false positives but you can expect your fraud rates to soar, leading to lost revenue from chargebacks.
But there is a better option – at Adyen, we suggest the answer lies in a granular approach to fraud defence. Here are three ways you can target fraudsters while ensuring a frictionless experience for your loyal shoppers:
- Identify the Shopper Behind the Transaction
Using device fingerprinting and transaction linking, you can track shoppers across devices, networks, and online personas and build a holistic view of the behaviour of both fraudsters and your loyal customers. This way, you can identify and block fraudsters while allowing your customers to shop unhindered, even if they checkout as a guest or significantly alter their behaviour.
- Spot Suspicious Behaviour at the Checkout
A good way to detect bot attacks is through hyper-specific behavioural tracking during checkout. By analysing keystrokes, mouse behaviour and speed of interactions, it is possible to determine whether it’s a human or an automated system. In this way, you can detect and stop card testing, along with other high-velocity attacks used by fraudsters.
- Adjust Transaction Velocity Thresholds
Your shoppers’ behaviour is likely to change during this period. They might purchase more regularly, or spend more per transaction. To prevent your risk settings from identifying these shoppers as fraudsters, you can keep false positives to a minimum by adjusting your thresholds to anticipate different buyer behaviour.
With the upcoming holiday season as one of the most important times of the year for retailers in Australia, taking a granular approach is key to maintaining a balance between fraud prevention, maximising sales and enabling a frictionless experience for your customers. Working with your payment provider to secure your best interests is essential.
Join Brian Dammeir, Head of Product at Adyen, and Prinitha Govender, Editor of Power Retail for a fireside chat on Wednesday, October 11th at 2pm, that will provide actionable insights on how to:
- Maximise the value of unified commerce via data
- Reduce friction online to increase store loyalty
- Track, manage and prevent fraud
- Link data from all channels for effective marketing and CRM
This webinar is powered by Adyen, a leading global technology payments company, delivering frictionless payments across online, mobile and in store. Adyen works with over 4,500 businesses worldwide including Facebook, Uber, Netflix, Spotify, Movember Foundation, MJ Bale, Freelancer and Kogan.com.