E-commerce merchants need to adapt to new fraud tactics. They are faced with increasing flows of money and evolving fraud schemes, but also with new technology disrupting traditional security measures.
The traditional “silver bullet” approach of relying on one or two anti-fraud strategies is no longer enough. Best in class organizations combine multiple complementary approaches to maximize the accuracy of fraud detection and avoid false positives that negatively impact reputations. With numerous fraud prevention solutions available — from device authentication to proxy piercing, or address verification service — the layered approach shows better results in detecting fraud attempts.
In their Market Guide for Online Fraud Detection, Gartner’s fraud analysts outlined five critical layers to tackle today’s threats: end-point, navigation, channel and cross-channel centric layers and an additional entity link analysis layer.