Stepping up the fight in fraud detection in online payments

29 / 03 / 2022

Step up the fight against the surge in online fraud with Worldline. Read about the solutions and strategies for fraud detection in online payments.

fraud detection in online payments

As surely as night follows day, the continuing exponential growth in e-Commerce worldwide, exacerbated further by the pandemic, has generated a parallel surge in online fraud. Countering this inexorable development has become one of the most pressing objectives for all merchants hoping to protect revenues and secure the trust and loyalty of that most precious of commodities – their customers.

Indeed, according to Statista, the projection for global fraudulent transactions made with payment cards is estimated to amount to over US $ 32 billion in 2021, and to rise still further to a staggering $ 38.5 billion by 2027. With merchants liable for Card Not Present (CNP) fraud and every $1 of online chargeback costing a merchant approximately $3.6 (source: LexisNexis), it is easy to see why this is such an enormous problem landing directly onto their plate. This can lead to potentially heavy fines imposed by the card schemes and for the worst ‘offenders’, suspension of trading.

To counter this new era of fraud, a solution is needed that combines the more traditional ‘static’ rules with next generational ‘machine learning’. This so-called ‘hybrid’ solution, which benefits from both approaches, is a much more effective deterrent as it benefits from being able to learn and adapt to the ever-changing fraud patterns as well as being tailored to an individual organisation’s specific requirements. 

The next generation solution for payments – smarter, simpler, better

To meet this end, Worldline has integrated the Microsoft Dynamics 365 Fraud Protection solution, a unique hybrid system which has been tailored for Worldline specifically to deliver one efficacious resolution. This next generation, hybrid fraud solution goes beyond what traditional rules or advanced Machine Learning (ML) alone could achieve.

Harnessing a unique combination of data, knowledge and science, traditional static rules and Microsoft’s undisputed market-leading technology and multiple patents in advanced ML, this hybrid solution stands out clearly ahead of the competition.

The solution is also highly customisable, it is not a “one size fits all” but rather a “bespoke to the merchant” system. Thus, companies can tailor their controls to find the desired and most appropriate balance of fraud prevention and reduce customer friction.

Seamless integration and customer experience

Worldline assures a truly seamless integration with no adverse impact on the overall customer experience. Key features for the solution are: 

  • Machine learning AI – adapting to fraud patterns and optimising fraud detection
  • Hybrid fraud screening – incorporating / combining static rules and advanced machine learning
  • Risk appetite assessment – balancing customer friction against fraud detection rate
  • Multi-hierarchy management – enabling fraud management strategy across every level of the business.

And those are in addition to additional features such as device fingerprinting and extensive data network functionality.

The hybrid of using both components together helps online businesses retain their desired level of control yet underpin it with the very latest in complementary scientific advances.

Processing over one billion transactions per year, the Microsoft Dynamics 365 Fraud Protection system is truly at the forefront of next generational payment fraud solutions. 

Panteha Pedram

Director of Global Risk Products & Value-Added Services, Worldline