Fraud Screen Tools Cited As Most Effective Method For Fighting Fraud

[mandy]

Risk-scoring models, or fraud screens, designed to block specific types of fraud experienced by individual retailers were cited most often as the most effective risk management tools in a study by CyberSource Corp., a provider of online risk-management technology and services.

The risk-scoring models, configured using an individual e-retailer's historical data related to online orders, are designed to block, and alert merchants to, the types of orders that have been known to be fraudulent on their web sites. Because criminals often revise their strategies to compensate for retailers' risk management efforts, however, the risk-scoring models also need to be continuously updated, CyberSource says. "Since fraudsters learn over time and vary their strategies, we typically find that most risk-scoring models need regular tuning with new analysis and data in order to maximize their effectiveness," CyberSource says in its 9thy Annual Online Fraud Report, which is based on a survey of 318 online merchants last fall...

full article: http://www.internetretailer.com/dailyNews.asp?id=25588

download the CyberSource 9th Annual Online Fraud Report here: http://www.cybersource.com/cgi-bin/pages...index.html