Group Admins
Countering Merchant Fraud with Advanced System by Covery
Public Group active 2 years agoMerchant fraud is the most common risk associated with online trading. Making a purchase decision, a customer does not have the opportunity to see a retailer or product acquired. That is why buyers can mistake false traders for real. This situation leaves room for different types of fraud.
Moreover, a scam undermines the trust of customers in real merchants. With the development of e-commerce, merchant fraud began to be a large-scale problem. It leads to the loss of value and deformation of commercial systems and their legal instruments. That is why the struggle with merchant fraud became a common task for numerous groups of interest.
Most Common Types of Merchant Fraud
falsification of identity in order to get a false merchant account
processing fraudulent transactions or obtaining lines of credit for quick enrichment
stealing card owner data to make fraudulent purchases
transaction laundering for processing payments received by a scam. For these purposes, fraudsters use legitimized merchant’s payment credentials
manipulations with websites of real merchants and the creation of twin websites, etc.
In order to counteract all these types of merchant fraud, a wide array of tools has been elaborated. Among them are such as:
introduction of a system capable of detecting anomalies in merchant operations
two-factor authorization for both sellers and buyers
a risk-free purchase program that “holds” the money of a buyer until the item will be received and checked
protection of the transfer of data between the client’s browser and the site, etc.
But the first step of fraud prevention is a thorough study and analysis of fraud and money laundering schemes. Solving such a task alone is beyond the power of any trading business. Achieving this goal requires deep experience and a large database of all kinds of fraud cases.
Experience of Covery in Dealing with Merchant Fraud
Covery is a proven risk and fraud management platform. Its service is available in the USA, Europe, and all over the world. Based on 5+ years of experience in combating merchant fraud, Covery offers its own fraud prevention system:
Risk-Trust Scoring system that allows classifying different users as honest and reliable users or dishonest fraudsters
Trustchain database with 400+ million reputation records. Thanks to this global database, it is possible to prevent operations with compromised identifiers
IP Screening that assesses IP reputation with connected devices, etc.
KYC Automation
To avoid potentially dangerous transactions and money laundering online, trust the latest technology from the Covery. Updated in real-time, its databases provide clients with reliable defense. With its service, merchant operations will be safe and profitable.
