In today's world of open proxy networks like Tor, stolen credit cards and elaborate hacking schemes; virtual fraudsters have ample ways to steal from online retailers.
The impact is felt globally - according to the Association of Certified Fraud Examiners (ACFE) organizations around the world lose an estimated five percent of their annual revenues to fraud. By putting the right checks and balances into place, retailers can proactively avoid fraudulent online transactions while simultaneously ensuring valid customers receive the highest quality of service.
A new solution to help fight this battle is DOTS Order Validation. Available now at serviceobjects.com, DOTS Order Validation is a real-time fraud protection API that verifies, standardizes and authenticates customer order information.
Decreasing Fraud in Real-Time
"Enough is enough - smart retailers are leveraging big data to weed out bogus online transactions. We can now compare the location of the shopper's computer with the phone and mailing address to identify fraud," said Geoffrey Grow, CEO of Service Objects. "Although a credit card may be valid, retailers need to examine all the information submitted by shoppers. DOTS Order Validation does exactly this - highlighting any irregularities by reviewing over 200 data points to ensure orders are genuine, accurate and deliverable. All in less than one second."
The ACFE further reveals in the 2012 Report to the Nations on Occupational Fraud & Abuse that organizations have faced a potential total fraud loss of more than $3.5 trillion worldwide. DOTS Order Validation is designed to lower this number by validating key pieces of data in real-time and alerting business to potential harmful transactions.
Data that is reviewed and compared includes shipping and billing addresses, Bank Identification Numbers (BIN), phone numbers, email addresses, geolocation and IP addresses. After a verification process, a 0-100 quality score is assigned, flagging the transaction as "Pass," "Review" or "Fail." With this knowledge, retailers can choose to stop fulfillment, call the shopper for additional information or proceed with the order.
The Service Objects Difference
DOTS Order Validation goes beyond standard contact and customer information verification. This product normalizes and cross validates data the moment the customer hits "submit order" and compares it against multiple discrete databases within the Service Objects master database to determine the validity and authenticity of the incoming transaction.
Additional benefits and features include:
• Ensures shipping and billing address outputs are validated, standardized and corrected to USPS mailing address
• Reduces chargeback fees from credit card processing
• Flags irregularities in IP address and customer provided addresses
• Validates billing and shipping phone numbers, email addresses and contact names
• Provides flags when the credit card is from a country of high risk
• Allows for improved shipping times to customers when addresses are accurate, in turn, increasing customer satisfaction.