As the 2011 holiday season draws to a close statistics show that three days before Christmas there was a 15% increase in holiday spending. This is a great sign for the economy, however, not necessarily for the Merchants.
Fraud is still a factor in gross sales and although fraudulent transactions are down, savvy fraudsters are costing retailers more per transaction. Now, more than ever, fraudsters are buying higher ticket items and services through E-commerce and mobile transactions.
According to a study published by LexisNexis and conducted by Javelin Strategy & Research in 2011 for every $100 a consumer spends the Merchant incurs a true cost of $230.
To combat losses caused by fraud, Merchants should remain vigilant and stay informed about fraud trends. This information can be invaluable when developing a strategy to build a suite of fraud prevention solutions.
Affordable technologies are available for Merchants to employ. Many verification companies offer real-time Identity Verification such as Veratad Technologies with or without KBA Challenge Questions and *ProtectID 2-Factor Out-of-Band Authentication Solutions to help combat the growing costs of fraud.
Looking forward to 2012 the New Year presents a fresh opportunity for Merchants to review vulnerabilities, prepare fraud prevention technologies and enforce programs to help prevent identity theft for the future of the Merchant’s business growth and success.
Read about our solutions…
Identity Verification and KBA Out of Wallet Challenge Questions
2 Factor Authentication
*ProtectID is a Registered Trademark of StrikeForce Technologies, LLC.
