Retail fraudsters may be more aggressive and sophisticated these days, but so is fraud detection and prevention technology. Unfortunately, many retailers continue to miss out by falsely identifying legitimate purchases as fraudulent.
The excitement of getting sales can often blind retailers to their own vulnerabilities and push them to disregard taking precautions against fraudulent transactions.
And the opposite is also true, as hyper-vigilant fraud teams with access to real-time data can become overzealous in turning back sales.
In a poll conducted by CreditCards.com, four out of 10 respondents reported they had been contacted by their bank due to a blocked transaction suspected as fraud. More than half stated the blocked transaction was a false positive – and false positives not only mean that sale is lost, but the customer may well be discouraged from ever shopping with that retailer again.
Preventing fraud and recovering losses are fast becoming the most cost-effective strategies to increase a business’s bottom line, and with it, too, comes a focus on ensuring such ‘false positives’ don’t occur.
Businesses can now generate strong ROI on fraud detection by driving operational efficiencies and lowering labour costs in the continuous fight to tackle fraudulent transactions.
And, as fraud detection technology matures and the return on investment from proactive fraud detection solutions increases, preventing fraud and recovering losses are fast becoming the most cost-effective strategies to increasing a corporation’s bottom line.
By investing in an intelligence-led, technology-driven data analytics fraud detection and prevention solution, businesses can minimise the occurrence of fraud and recover funds more efficiently than ever.
But one of the most important keys to the fraud-prevention kingdom is having the right fraud management team in place to configure and maintain the tools you choose to implement in your business.
A fraud prevention team armed with the right solution can even enlighten with revenue-generating insights, like repeat and loyal customers, new growth opportunities such as product areas and new markets.
Even when comparing traditional performance improvement strategies to fraud prevention initiatives, businesses achieve a greater ROI by implementing fraud detection programs – the only choice you need to make is which system you choose and how you intend to manage it. And with a growing number of outsourced fraud detection and prevention management services available, there are plenty of ways for you to find the correct solution for your needs.
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. The fraud team (when using the right fraud prevention solution) holds the keys to a treasure trove of business intelligence and customer insights.
For more information, visit MYOB PayBy Fraud Management Services.