Fraud Tools

Which ones do you use/prefer?

[jammac]

I am looking into the various tools that can be used to help minimize fraud for an online store. I am curious about other people's experiences - which ones have you used and which ones did you like/dislike?

The tools I have been looking at so far include AVS, CVV, Verified by Visa, Mastercard Secure, Mod10, and rules-based settlement definition (not sure if this goes by another name). Any others you might suggest would also be welcome!

[ish]

We use AVS in conjunction with other data (e.g. order value, free email address, destination) to produce a 'fraud score'. The higher the score the greater the risk of fraud. Orders scoring >x require the operator to investigate the order further before they are authorised.

[hannamyluv]

We use a fraud score combined with a risk list, which is a list of known "bad" addresses, that have been used in fraud orders before. Orders with those addresses are automatically canceled.

[Morocco]

Use AVS and the 3d Secure programs (Verified by Visa, MasterCard SecureCode, JSecure, Amex's [when it comes out], and Discover's[when it comes out])

After attending the MRC in Las Vegas in February I had noticed that these programs have emerged as the official way to go now and in the future. These programs are desighned to one day eliminate cardholder-not-present transactions. But for the meantime the payment networks have orientated the programs to benefit the online merchant specifically.

[your_store]

We're currently developing a fraud scoring app for internal use. So far we're looking at the following variables:

- free email address
- order amount
- shipping service
- ship-to zip

The only other thing I can come up w/ is a list of items that are often targeted by fraudsters. Can anyone suggest any other factors to take into account?

[Morocco]

How much are you planning on spending on that fraud scoring app.

[your_store]

Hmm.. I'm not really putting too many resources into it. I just have my programmer working on it as an extension for our new order management system.

Are you suggesting I look at some off the shelf products?

[Morocco]

Currently I understand most fraud scoring apps are quite pricy pieces of software. I've heard them going for as much as $20,000. We looked into eFalcon last year and it turned out to be quite an investment, and it wasn't even going to guarantee us any results, just an estimation on the chaces of the tranaction being fraudulent.