4 red flags that indicate your fraud management system need to be revisited
Take a moment to evaluate your fraud management system, used to detect and prevent fraudulent transactions online.
In a study, detailed in the Australian Payment Card Fraud Report, 2018, card-not-present fraud now accounts for 84.8 percent of all fraud on Australian cards.
During the busy seasons, you’re likely not to have time to focus on fraud prevention maintenance.
But now that the holidays are well behind us, take a moment to evaluate your fraud management systems, used to detect and prevent fraudulent transactions.
If you’re seeing these four signs, then your transactional fraud management system needs a checkup.
1. An increase in operational complexity
If you’re devoting more resources and people to fraudulent transaction detection and prevention, that’s a sign you need to take a step back and evaluate your current situation.
Are you spending more time training people due to adding new ad hoc anti-fraud tools?
Are staffers finding it harder to keep current with additional manual review steps?
Increasing training requirements is not only costly, they’re a signal that your fraud systems need help.
This is an indicator that your fraud prevention processes need improvement.
2. An increase in chargebacks
Steady increases in your chargeback rate or a post-peak period spikes, are warning signs that fraudsters are circumventing your current operational processes.
3. An increase in losses
Rising losses from stolen or lost goods, higher cost of goods sold (COGS), or a surge in shipping expenses due to increasing fraud chargebacks indicate that fraud is higher than it should be.
4. Avoiding entering new markets or taking on new opportunities
Are you hesitant to offer products or services that are highly targeted by fraudsters?
Are you avoiding shipping to high-risk areas?
This lack of confidence is a sure indicator that your fraud prevention system needs careful evaluation.
MYOB PayBy’s specialised team of experts provides support for data analysis, rules-building, and recommended best practices customised to your business. We’re ahead of the latest attack methods and evolving fraud patterns so we can deal with the latest types of fraud before you’re even aware of them.
For an assessment of your business needs, head to myobpayby.com