An estimated $3.5 billion in revenue was lost by E-Commerce merchants in 2012 due to online fraud. Merchants need to effectively combat against online fraud to guard top line growth. However, as online sales continue to grow, merchants are finding it more challenging to effectively combat online fraud only by manually reviewing orders for fraud. The sheer high volume of online orders means that merchants have to adopt automated process and rule based screening approaches as well. As fraudsters find new ways to cheat and commit fraud, online merchants also need to continuously update their automated process and rule based screening approaches to effectively combat innovations in fraud. Also, merchants need to institute processes and rules for fraud screening that are specific to their unique business model, and industry. For instance, an online store selling high-value luxury watches may not consider a high value transaction as high risk. On the other hand, an online store selling low-value retail items may consider a high value order as a high risk for fraud.
A business process management system (BPMS) allows an online merchant to automate and continuously update their business-specific process and rule based fraud screening approaches by offering the following:
Process and rule-based fraud screening suite. Stay ahead of the fraudsters by rapidly building a re-usable and continuously updateable suite of process and rules-based fraud screening models to score risk.
Integrated dashboards. Deliver a “single view” of the risk case by pulling all risk relevant content and related items from various other systems.
Tuning and Real-Time Reporting. Leverage real-time analytics to examine risk trends, financial impact, and other key risk related performance indicators to fine-tune risk scoring models.
More quickly engage with fraud risks. Deal with fraud risks in a secure environment from anywhere over the web or on-the-go through a mobile device.
Fraudsters evolve and flout their conquests. It is time that online merchants adopt BPMS to stay ahead of the fraudsters.
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