Experian claims 90% success rate for CNP fraud tool

Experian claims 90% success rate for CNP fraud tool

Experian is reporting a 90 per cent success rate in remote card fraud detection for its new e-identity product following a series of market tests with UK retailers.

The Experian system is aimed at Card-not-present (CNP) transactions, when goods are purchased without the physical presence of the payment card, for example over the Internet or by phone. CNP transactions are particularly susceptible to fraud and, according to recent figures from the UK's Association for Payment Clearing Services (APACS), suffered a 146% per cent rise last year to £40 million, due largely to Internet transactions.

Dixons Group, Europe's largest specialist retailer of consumer electronics, began using Experian's e-identity before its busy Christmas period. Stuart Carson, director of direct business at Dixons Group, says CNP fraud is an escalating problem for online retailers which threatens the viability of the Internet as a sales channel.

He says: "By using Experian's e-identity in combination with card verification and its in-house anti-fraud systems, which detect suspect transactions, we are confident that we can detect and prevent up to nine out of ten fraudulent transactions."

By matching the customer's transaction details with Experian's databases, e-identity provides retailers with an authentication score that reflects the degree of confidence in the identity of the consumer. The authentication score is delivered in a matter of seconds, enabling e-tailers to make an instant decision on whether to accept or decline a transaction before despatching goods.


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