As the number of consumers shopping online continues to rise, incidents of fraud rise with them. For merchants this presents something of a catch-22 – how do you prevent fraudulent transactions without stopping legitimate ones going through? Payment Orchestration offers an effective solution; helping merchants to manage fraud without the manual effort the process usually requires.
Global losses from payment fraud tripled from $9.84 billion in 2011 to $32.39 billion in 2020, and the cost of the crime is is projected to reach $40.62 billion in 2027 – a 25% increase on 2020 figures.
The findings of Cybersource’s Global Fraud Report 2022 certainly seem to substantiate these numbers, reporting that, globally, fraud costs have increased for a second consecutive year.
It also reports that phishing/pharming, card testing, identity theft, and first-party misuse remain the most prevalent fraud attacks, each affecting more than 3 in 10 merchants globally. Alarmingly, 9-in-10 merchants have experienced at least one fraud management challenge and merchants are struggling to identify and respond to fraud attacks.
Yet most merchants have not increased the share of revenue they spend to manage the problem.
The challenge is that merchants deal with an overwhelming number of transactions every day, and identifying fraud signals can be hampered by systems that not only generate false positives, but inadvertently reject loyal customers.
So, how can you effectively fight fraud while approving legitimate transactions nearly instantaneously to maintain a frictionless payment journey and keep revenues flowing?