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The aim of the programme is to help businesses in Scotland take greater advantage of ecommerce by giving them access to expert advice on a variety of relevant topics. The focus is on providing practical, robust, independent “How to…” information to enable delegates to take action. At the end of the session we want delegates to have enough information to refine their existing ecommerce practices, so they can increase the value of their business. This was a talk I gave on common sources of fraud and some new opportunities.
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THE ONLY WAY TO PROVE
YOU ARE WHO YOU SAY YOU
AREPURELY ONLINE
Common sources of fraud & how to prevent
eCommerce Fraudby James Varga
$1 Trillian Globally in 2013Costs UK retailers over £200m each year3% up to 8% or 10% of turnover
GROWING GLOBAL TREND
All fraud is increasing 53% now identity related
Loosing battleit gets smarter, faster & more
organisedEmerging Trends in mobile Higher the value the higher the risk
CONSISTENT TREND OF GROWTHboth in the UK and abroad
Increasingly used:Device Identification, ID Authentication, Mobile Geolocation, NFC, Telephone Number
Identification and Text Messaging
Decreasingly used:AVS use declined, while the use of Complete
Fraud Platforms and Modelling
TRENDS 2014from the merchant perspecvtive
1. Card Fraud (CNP & Chargebacks)
2. Identity Fraud3. Return Fraud4. Man-in-the-middle5. Hacking & Malicious Code
TOP 5 FRAUD ISSUESfrom a merchants perspective
1. Fraudulent website2. Used cards on-line3. Counterfeit products4. Alleged free trials5. Sales of tickets on-line
TOP 5 FRAUD ISSUESfrom a consumers perspective
• Layered approach• Minimise the fraud in the payment system• Authorisation & Authentication• Protect vulnerable account data with
encryption/etc• Security and monitor and manage events
that occur• Cardholder empowerment
FIGTING FRAUDin a digital marketplace
• Limit addresses / use address verification• Ship to vs. bill to address / out of country• Require strong passwords• Layer your security• Limit big spenders• Adding security / Avoidance
TOP 5 TIPS : CONSERVATIVEfrom the merchant perspective
1. Use fraud scoring systemsmaxmind, kount, Retail Decisions
2. Use device trust scores iovation
3. Social account verificationtrulioo
4. Identity VerificationmiiCard
TOP 5 TIPS : TRENDINGfrom the merchant perspective
Have a processes / iteratebe agilebe insightfulbe ready to adapt/adopt
TOP TIPabove all else
THE ONLY WAY TO PROVE
YOU ARE WHO YOU SAY YOU
AREPURELY ONLINE
MOBILE COMMERCE
NEW CHANNELS
• Convenience faster checkout/processing of payments
• Opportunity increase leads & sales generation
• Conversion upsell opportunities & location-based promos
• Loyaltyincrease consumer loyalty
MOBILE CHANNEL ADDING VALUEas a new commerce channel
• Addressing consumer security concerns with the platform
• Addressing how to manage fraud risk• Making it easier for consumers to transact
versus just shopping• Making it possible to take payments more
efficiently • New payment types (e.g. virtual currencies)
OBSTACLES TO ADOPTIONof mobile eCommerce
Requires new tools • ID Authentication• Secure Mobile Payments
Methods• Device ID• Complete fraud platform
FRAUD RISKSin the mobile channel
THE ONLY WAY TO PROVE
YOU ARE WHO YOU SAY YOU
AREPURELY ONLINE
Identity Verification
NEW TOOLS
Identity Verification vs. Authentication
Data Checks vs. Identity Proofing
Security vs. Trust
Terminology understanding the market
LEVELS OF ASSURANCE (LOA)equivalent to photo id checks
Proving
‘you are you’purely onlineand in real time
ID PROOFING & 2FAEscalating levels of assurance and multiple factors of authentication
1. Online customer conversion
50% to 70% increase2. Offline execution costs
£1 / user / month3. Fraud cost and risk
up to 100% reduction
3 KEY BENEFITSin financial services & other industries
TRUST DRIVES VALUElevels of trust are needs driven depending on context
low trust
low value
HIGH TRUST
HIGH VALUE1.Convenience2.Control 3.Security
PROVIDE BENEFITS & VALUEin the context to what the consumer is doing
1. Convenienceof quicker checkouts with
more options2. Control
and manageability of personal data3. Security / Privacy
to share nothing or everything, including sensitive personal data
Verified Attributes PLUS:
1. Online customer conversion50% to 70% increase
2. Offline execution costs£1 / user / month
3. Fraud cost and risk up to 100% reduction
FOR THE CONSUMER FOR THE BUSINESS
THE ONLY WAY TO PROVE
YOU ARE WHO YOU SAY YOU
AREPURELY ONLINE
CONSUMER EMPOWERMENT
NEW OPPORTUNITIES
Providing payment services isn’t enough – you have to provide value
Paypal location awarenessAmazon paymentsGoogle wallet
Convergence on the consumer driving commerce…requiring consumer driven identities
NEW OPPORTUNITIESin a changing landscape
THE ONLY WAY TO PROVE
YOU ARE WHO YOU SAY YOU
AREPURELY ONLINE
Customer driven eCommerce
DISCUSSION GROUP
To find out more visit:www.miiCard.com
Twittter.com/miiCardFacebook.com/miicard Linkedin.com/company/miicard
Creating Trust OnlineThank you
