CyberSource launches online fraud control automation technology

Source: CyberSource

CyberSource Corporation (NASDAQ: CYBS) today announced Intelligent Review Technology as part of its risk management solutions for eCommerce merchants.

New features of its enterprise-class case management system push automation beyond the initial order screening process and into secondary review cycles so that online sellers can more easily accommodate growth. Also, physical device fingerprinting has been added to the management portal's set of 150+ integrated fraud detectors.

"As eCommerce merchants continue to grow, fraud management presents a series of potential bottlenecks," said Kirsten Fry-Sanchez, CyberSource vice president, product management. "Though front-end screening tools have brought the online fraud rate to manageable levels for some, the price merchants are paying for that success now looms as the current challenge. On average, merchants review one out of every four orders they receive, adding significant cost and delay. To assist with this workload, they add more anti-fraud tools each year, which in turn adds to the management challenge. By making multiple detectors accessible on-demand via a single interface, and extending more automation and intelligence into the later stages of fraud screening, areas formerly managed almost entirely by human effort, we're taking order review to a whole new level of efficiency.

How the CyberSource global fraud management portal works New--device fingerprinting A single connection to CyberSource brings merchants to the CyberSource global fraud portal, Decision Manager, which begins the fraud detection process with industry-leading capabilities. The system can automatically apply over 150 global validation tests against the inbound orders and, per merchant-defined rules, automatically make a decision to accept, reject or mark the orders for further review. The aim is to corner fraudsters by examining each transaction from multiple perspectives. New to CyberSource fraud detection is device fingerprinting, which builds a digital fingerprint of the computer or other device being used to place the order. The digital fingerprint can expose fraudsters who are using the same computer systems to place multiple orders using different identities or addresses. Other tests included in initial screening are global multi-merchant transaction histories, same store purchase histories, IP geolocation tests, and global validation services (e.g., validation of international address and phone number formats). The system extends beyond standard payment cards to address global payment options offered by merchants that are expanding internationally.

New--Intelligent Review Technology, adds a second stage of automated screening Now merchants can easily define rules to automatically invoke a second stage of automated screening for orders that have been suspended for review. The second stage auto screen arms merchants with more sophisticated tools to automatically evaluate queued orders at a higher level of scrutiny. Automating the review of queued orders significantly reduces the length of time orders remain suspended, which can result in operational efficiencies, greater customer satisfaction, and higher conversion of valid orders.

Best reviewer "cloned"
To further speed review and reduce training time, orders can be automatically compared to orders having similar characteristics that have been seen and acted on before. A statistical comparison is made, guiding new or junior reviewers as to whether the best performing reviewers would have accepted the order.

Case priority assignment, service level management Orders are assigned to queues, prioritised within queues, and assigned owners based on easily created merchant rules. Cases can be automatically monitored and accelerated to ensure they clear the queue in time to meet customer service commitments. Cases at risk can trigger email alerts or acceptance/rejection actions.

Managed services

To further reduce the burden of fraud detection and order management on merchants, CyberSource offers Managed Services, where an expert CyberSource team can complement internal merchant staff and procedures. These services are available in two forms, Performance Monitoring and Fully Managed Operations.
Performance Monitoring can include on-site review of merchant processes, design of order screening strategies, and ongoing monitoring and system tuning to optimise business results. With Fully Managed Operations, CyberSource fraud analysts and order conversion experts manage every aspect of a merchant's fraud management process, including order review.

Decision Manager and Managed Services are available now. Intelligent Review Technology will be released in phases over the course of 2008.

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