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Education

etc. all have different fraud pro-
files. Knowing the type of device AI by itself is not enough – the key is the addition
allows you to screen accordingly.
of the human element to calculate specific
3. Reduce manual reviews. Man-
ual review of orders should be a tolerance and risk levels for each specific business
last line of defense when fight- to provide real intelligence for retailers.
ing online fraud. The process is
slow, resource intensive and not
scalable for company growth. In
addition, making your customer Some businesses think that blocking transactions from one particular region,
wait for approvals can cost you or stopping sales via one specific channel that has higher fraud rates than the
sales and brand reputation. Au- rest, will allow them to sidestep fraud. But this thinking will hurt them in the
tomating the transaction review long run. Merchants need to find a solution that gives them the confidence to
process can eliminate costs and sell more products to more people in more places and expand revenue oppor-
speed up order acceptance while tunities – mitigating fraud, but boosting overall sales.
maintaining a high-quality cus-
tomer experience. Don Bush joined Kount as Director of Marketing in October 2010 and became Vice President of
4. Use order linking and perso- Marketing in December 2012. Previously, he was Director of Marketing at CradlePoint, a leading
nas. Capabilities like order link- manufacturer of wireless routing solutions in the mobile broadband industry. Don has worked in
ing and personas use hundreds of several management roles within the technology segment for over 20 years with both hardware/
variables to construct a definitive software manufacturers and as a partner in two top technology marketing agencies. He has led
link to online purchase behavior products launches and marketing programs for dozens of companies around the world such as
‒ either directly or indirectly ‒ to Citi, HP, IBM, Kodak, Motorola and Weyerhaeuser, and he co-authored the seminar series Common
help reveal fraudulent activity. Launch Disasters and How to Avoid Them. Contact Don at don.bush@kount.com or visit www.
kount.com.
5. Optimize rules. Every busi-
ness is different, and there is no
universal setting for rules within
your fraud platform. Your fraud
platform should be able to un-
cover hidden insights and opti-
mize performance of the fraud
platform itself. After reviewing
specific business goals and ob-
jectives, merchants should make
sure their fraud platform con-
ducts an analysis of currently
active rules and their overall ef-
fectiveness to best make recom-
mendations, along with an as-
sessment of future performance
gains.
While merchants work to prevent
fraud and its side effects, they also
must ensure their systems aren't stop-
ping legitimate sales in the process.
The goal of most online (and brick-
and-mortar) businesses is to grow
revenue, increase market share and
maintain an expanding base of hap-
py customers. Expanding into new
markets, adding new products or re-
ducing manual reviews can help or
hinder growth, depending on what
fraud strategy is behind each goal.

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