Fraudulent activity for card-not-present (CNP) transactions has been sharply increasing. According to research from ACI Worldwide, online retail fraud attempts have increased 30 percent year over year. While part of this is due to the increasing success of the ecommerce industry, the enhanced security of chip-and-PIN cards utilized by brick-and-mortar retail have influenced fraudsters to focus on “easier” CNP transactions. In order to protect your business and customers, there are three different security technologies you can utilize:
- Proactive risk management: This technology combines predictive analytics and a set of defined rules to provide fast and flexible responses to the evolving nature of online fraud. The software provides a broad layer of protection by analyzing transaction behavior across customer accounts to predict potential fraud issues before they affect your business.
- Contextual authentication: To increase the security behind customer accounts, contextual authentication acts as a compliment to the standard username/password and two-factor authentication. After a user logs in, contextual authentication analyzes the user behavior, account interaction, and geolocation to establish unique digital patterns that can verify a legitimate user or identify a fraudster.
- User-managed access solutions: If your ecommerce site utilizes social login features, you may already be familiar with user-managed access (UMA). With social login, customers can log in to your ecommerce site using their log in credentials from Facebook, Google, or another social channel. With UMA, customers can share sensitive personal data with other businesses and users selectively, without actually sharing their passwords or security credentials. As an example, you can allow users to checkout on your site using a PayPal login. That way, your servers don’t collect any sensitive payment data from the user.