In Depth

Tackling Omnichannel Fraud

A picture is worth a thousand words, it is said. So here’s an infographic that sums up what happens when two of the biggest buzzwords in payments come together: Omnichannel and Fraud.

Very few can argue with the fact that pretty much anything that’s useful to know in the world has been turned into an infographic. ACI has just created one highlighting what happens when two of the biggest buzzwords in payments come together: Omnichannel and Fraud.

Here’s why:

  • Although more than 90 percent of retailers allow their customers to shop across purchasing channels, only about 46 percent are actually using fraud management solutions across all those channel.
  • Among retailers surveyed, 69 percent look to third-party tools to help better manage fraud within commerce channels where cards are not present, while 65 percent rely on online authentication as a top security measure.
  • When it comes to fraud in card-present environments, the majority of merchants surveyed (87 percent) utilize real-time rules/scoring engines to remain one step ahead of cyber criminals. Roughly 74 percent execute in-store authentication, such as EMV/chip and PIN technology, as a tool to prevent fraudulent activities.

The solution, however, lies with the data.

In a recent interview, ACI’s Director of Fraud Product Management, Jackie Barwell, told MPD CEO Karen Webster that thinking about omnichannel fraud as a data problem will help retailers address this developing threat.

“In the recent years and months, those fulfillment channels have expanded quite dramatically,” Barwell said. “Merchants, in order to remain competitive with their peers, will need to fulfill those orders quicker… That, just in itself, creates just a huge challenge when they start to think about how to manage fraud across those very different channels.”

While there is no one answer to preventing and detecting fraud in the omnichannel world, merchants that are able to better understand how to read and manage data as well as utilize the various fraud prevention technologies at their disposal, may have the best chance at deploying effective fraud strategies across their commerce channels.

“I think that we just need to always be on our toes and we need to be one step ahead. And if retailers can be more effective by consolidating their data across all of their four fulfillment channels, and really use what [data] they currently have today — but more effectively — they won’t just be one step ahead, we can be two steps ahead,” Barwell concluded.

To access the full “Managing Fraud In An Omnichannel World” report, please click here.

——————————

New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

Click to comment

TRENDING RIGHT NOW