Strategic Partner Insights | Forter: The Top 9 Questions To Ask Your Fraud Prevention Provider
Choosing the right fraud prevention solution can sometimes prove to be a tricky task. The fraud prevention provider you select will ultimately help shape your business and can either aid or hinder your company’s potential growth and success. Customers of luxury retailers expect a seamless shopping experience whether offline or through online digital channels. Brands must alleviate fraud pain points without adding friction to the shopping experience in order to deliver the luxury service their customers deserve. So, when shopping around for a fraud solution, what should you ask?
1.) Does your solution incorporate manual review queues?
Quick Recommendation: Solutions that rely on manual review queues simply will not be able to decision transactions at the same scale that a fully automated provider can. Look for providers that can accommodate manual review teams (if your business already has them), but more acutely relies on robust automation methods.
Manual review processes are simply not nimble enough to keep up with the flow of a growing online business, and can often impact the customer experience. With peak seasons and heavy traffic times, manual review queues will lead to chokeholds on checkout, creating bottlenecks in delivering merchandise to valued customers. Instead, you should look for a provider that is able to accommodate manual review teams and who can overlap necessary business policies over their fully automated models to best serve your needs.
2.) What is the risk in manual or human intervention in the fraud prevention process?
Quick Recommendation: It is important that your potential provider understands that manual reviews and more hands on your data can mean greater security risks. Look for a provider that is able to minimize these factors.
Understanding that more hands on your business and customer data can mean a higher security risk to your company is vital. Automated solutions remove the possibility of human errors (which account for nearly 90% of all data breaches), and make far more powerful the “principle of least privilege,” ensuring employees only have access to the minimal amount of information needed to execute their job.
3.) How do we know our customer and business data will be safe?
Quick Recommendation: Making sure that your potential provider is GDPR compliant and is certified with the market’s highest data security accreditations is vital.
Ensuring that your fraud prevention provider has the market’s highest data security accreditations and is GDPR compliant is an essential component to your selection process. A company that values data security, and makes clear that it is one of their company pillars, is the only option when selecting a provider.
4.) Is your solution a plug-and-play model?
Quick Recommendation: You do not want a solution that is “one size fits all.” Look for a provider that can customize their solution to best suit your unique business needs.
Simply put, you want to ensure that your fraud prevention provider is tailored to your specific business needs and your unique fraud pain points. A “one size fits all” model simply cannot respond to the particular fraud issues your company may be facing. Suppose your company particularly suffers from high account takeover (ATO) rates and coupon abuse, but the provider you’re speaking to has a strong solution only for fraud chargebacks. The provider may be able to help minimize your chargeback rates, but ultimately would be administering a band-aid to an unrelated wound. Look for a provider that will work with you prior to the time of integration and attune their solution to your specific needs.
5.) Is your solution rules-based or does it incorporate elements of machine learning and artificial intelligence?
Quick Recommendation: Rules-based systems are archaic and do not allow for the nimbleness and flexibility that big data and advanced pattern recognition requires.
Online fraud today continues to grow more intricate and sophisticated. So too, do the fraudsters looking to exploit online luxury sites. As such, look for a provider that does not rely on rules to stop fraud. Consumers’ online lives are rich and complex, spanning multiple devices, locations and payment methods, meaning fraudsters have access to an unprecedented level of technology and data to make fraud easier than ever before. Fraudsters move fast. You need a continually developing system that can keep up. Rules-based systems simply will not be efficient nor effective enough to prevent sophisticated fraud or to recognize new fraud trends. With a solution that incorporates machine learning and AI, and guided by expert researchers, the system will be able to learn as more data comes through its network. As such, with greater data, comes a more robust and attuned system, able to stop fraud more accurately and more quickly.
6.) What immediate impact can we expect after we begin to use your product?
Quick Recommendation: You should look for a system that is able to quickly and effectively decrease your rate of chargebacks, improve your approval rates, target your specific fraud pain points, and increase your overall efficiency.
You want to be able to see an immediate impact in your KPIs after integrating with a new provider. Look to systems that require historical merchant data prior to integration upon which to train their model sets. In this way, you will have a fraud prevention machine working just for your specific needs and solving your unique pain points, from day one.
7.) Do you provide chargeback coverage?
Quick Recommendation: Look for a provider that offers a 100% chargeback guarantee.
While not all merchants may need coverage, go with a fraud prevention provider so confident in their results, that they’ll offer a 100% fraud chargeback guarantee.
8.) Does the system provide feedback and analysis for each recommendation or simply a recommendation?
Quick Recommendation: In order for you to get the most out of your provider’s products, make sure that you are able to have an open dialogue with them.
The best fraud prevention providers are the ones that are most attuned to your specific needs. Find a provider that will allow you to provide feedback to their system on an ongoing basis, whether through the UX of their platform itself, or through ongoing discussions with internal team members.
9.) How long does the integration process take?
Quick Recommendation: Integrating with your new provider should not be an additional headache. Make sure to understand the expected process timeframe from the outset and go with a provider that can support a seamless and time sensitive integration process.
Ask potential providers what their average integration times are with other similar clients. What kind of resources will they need from you? You want a provider that can work seamlessly with you and your old system, without creating further stress or unforeseen hiccups that could end up causing you more time and effort in the long-run.
Walpole Strategic Partner, Forter, is the leading e-commerce fraud prevention company processing over £18 billion each year. Its end-to-end identity-based solution protects e-commerce merchants during every stage of the customer lifecycle and is the only company able to provide real-time decisions to identify suspicious behaviour and catch fraudsters before they strike.