Visa USA and e-payment solutions provider CyberSource Corporation have launched a new fraud detection service for businesses that sell online and via call centres.
'CyberSource Advanced Fraud Screen Enhanced by Visa' examines transactions generated from online stores and call centres and estimates the level of risk associated with each transaction.
The system is linked to a large database of global fraud trends and global payment-card usage patterns, including online and offline transaction data, and is updated automatically on a continuous basis.
According to Jeff King, director of risk product management at CyberSource, by the time an independent service provider can collect data on new fraud trends, update its modeling and deploy changes, the crime has been committed and the criminal has changed his behaviour.
"To protect merchants effectively, anti-fraud systems must be updated continuously so they can respond to threats as they are happening. Not only will this help merchants lower fraud-related costs by identifying risky transactions, it can increase consumer goodwill by eliminating unintentional 'insults' that can occur when orders are rejected incorrectly," says King.
The Visa-CyberSource fraud detection system is to be rolled out in January 2002.