CyberSource Enhances Internet Fraud Screen to Combat Credit Card Fraud
Advances in Fraud Detection Service Help Businesses Selling Online and via Call Centers Convert More Valid Orders and Avoid Losses
London
June 5, 2001
CyberSource Corporation (Nasdaq: CYBS), a leading provider of risk management and real-time payment solutions, and a pioneer in Internet fraud detection, today announced enhancements to the CyberSource Internet Fraud Screen (IFS). The fraud screening service enhancements help businesses selling online and via call centers maximize profits and improve valid order conversion rates by identifying attempted fraudulent orders with greater accuracy.
Improvements exceeding 25 percent in the fraud detection and identity verification capabilities were achieved by refining the performed screening tests, and relative weights, based on the evaluation of fraud trends experienced by CyberSource customers. To implement these refinements, CyberSource created a new, highly flexible screening model. This model allows quick deployment of new tests and weight modifications, enabling CyberSource to customize screening models for its customers by industry, geolocation or merchant-specific criteria. These refinements not only improve the predictiveness and manageability of the system, they also help reduce false positive scoring results (i.e., customer orders incorrectly flagged as potentially fraudulent).
In addition to the refined tests and weights, CyberSource added a new risk profile code to improve customer service efficiency and a business' ability to convert more valid orders. Risk profile codes help merchants gain a greater understanding of the key factors that contribute to an IFS risk score on any specific transaction. The new code identifies a gift order, where there is a bill-to and ship-to address mis-match by country or state, which often represents a higher probability of fraud. With this new risk profile code, along with the improved fraud detection capabilities, merchants can quickly determine whether to accept or reject an order and respond to customer service inquiries.
"We recognize that fraud can have a major impact on a business' bottom line," said Jeff King, Director of Risk Product Management for CyberSource. "We are pleased to be able to announce these refinements to our fraud screening service to continue helping businesses combat credit card fraud and related losses. These enhancements underscore CyberSource's commitment to be the leading provider of the most advanced and highly accurate fraud screening solution on the market."
"Fraudsters and cyber-criminals are becoming increasingly sophisticated," commented Joseph Marino, Senior Analyst at Current Analysis, Inc. "Selecting a solution provider, like CyberSource, that continually evaluates and improves the accuracy of its fraud detection service will be critical to those businesses concerned with combating credit card fraud and reducing its impact on their bottom line."
The enhanced version of IFS will be available June 7, 2001. All current IFS customers will automatically benefit from the new enhancements and can begin taking advantage of the new risk profile code immediately.
The CyberSource Internet Fraud Screen
IFS screens commerce transactions generated from web sites or call centers and measures the level of risk associated with each order, returning a related risk score back to a merchant in real time. Merchants then make a decision about whether to accept or reject the order. This service not only provides a more efficient risk management tool for merchants, but also provides a higher level of security for online shoppers.
Using data validation, network data aggregation and merchant-specific negative file checks, IFS examines more than 150 different factors to calculate the risk of fraud associated with a purchase. The average time for the fraud screening process is less than one second and merchants have the flexibility to tailor risk measurement assessments based on specific seasonal criteria or other deviations in their expected customer behavior.
Editorial Contact:
Bruce Frymire
CyberSource Corporation
650.965.6042
bfrymire@cybersource.com
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