Digital fraud prevention company Kount is rolling out a complete solution to protect companies from criminal and friendly fraud, the firm announced in a press release on Monday (Oct. 28).
Kount’s Friendly Fraud Prevention Solution helps businesses avoid chargebacks and speed up dispute resolutions with the aid of Visa Merchant Purchase Inquiry (VMPI), an element of Visa’s Claim Resolutions.
“Many businesses struggle with distinguishing friendly fraud from criminal fraud, limiting their ability to effectively fight chargebacks and deliver an optimal customer experience,” said Brad Wiskirchen, CEO of Kount. “Through Kount’s Friendly Fraud Prevention Solution, digital businesses can now speed up case resolution and gain improved chargeback data to optimize their fraud prevention strategy.”
Kount’s digital fraud prevention uses artificial intelligence (AI) that mimics a fraud analyst. The solution merges unsupervised and supervised machine learning created with billions of transactions over a dozen-plus years.
When used in combination with Kount’s data analytics and partnerships, the new solution assists businesses with differentiating criminal fraud, friendly fraud and valid disputes.
“Customer experience is key for both merchants and issuing banks, and friendly fraud poses a unique challenge, especially for those who operate in digital or remote channels,” said Krista Tedder, Director of Payments at Javelin Research. “More effective information sharing between issuers and merchants can help consumers quickly identify purchases to prevent disputes while also providing issuers the insights they need to identify friendly fraud claims.”
Friendly fraud can account for 40-80 percent of all fraud losses. A key tool in Kount’s solution is Datamart, which gives businesses advanced data analytics to examine qualifiers such as email address, product and data types. This offers clarity to help companies isolate legitimate disputes from friendly fraud.
Kount and all-in-one payment platform BlueSnap released the Internet Retailer survey and report last week. It found that fraud prevention and currency and payment processing were the biggest obstacles hindering online retailers from doing business abroad.
The survey also showed that global eCommerce will top $3 trillion this year for the first time, with international consumers increasingly shopping online.