Credit card fraud detection is something that online merchants need to know. It is a fact that we are living in a cashless society and here, the entire payment system has become completely online. The online payment system has made the ecosystem of online business less complicated. But, you cannot deny the fact that everything has positive as well as negative sides. The online credit card transaction is not an exception. Since the introduction of the payment system, online consumers are facing credit card fraud transactions. The fraudsters always get a chance to get illegal access to someone’s finances. Unlike offline or cash transactions, the process of online transactions is very simple. The transaction gets completed after entering the correct credit card information.
According to a report, there were many businessmen who faced credit card fraudulent activities in 2010. Well, it happened before the introduction of two-step verification. If customers face any sort of credit card fraud transaction, the merchant loses the loyalty of the customers. Moreover, it hampers the reputation of the business. If a data breach happens, the merchants, banks, consumers, and organizations will have to deal with some deadly consequences. Monetary theft is undoubtedly one of those. According to a report, almost 16.7 million people suffered from credit card fraud in 2017. As per the report presented by the FTC also known as the Federal Trade Commission, the number is almost 40% greater than that of the previous year. Another report shows that there were more than 8000 credit cardholders who faced credit card fraudulent activities in Florida and the number becomes 13,000 in California.
Fraud Analytics And Credit Card Fraud
Well, fraud analytics is one of the best options through which financial institutions can prevent credit card frauds. It is a fact that criminals who are conducting credit card fraud are not the only ones having advanced technology. The financial institutions are also paired with advanced technologies through which they are providing all-around protection to the customers. Now, if we specifically talk about fraud analytics, it is basically a term that indicates quantitative sciences. It will actually help the financial institutions to understand financial fraud.
Fraud analytics consists of two important elements. These are Computer Science and Mathematics. So, if you deeply analyse fraud analytics, you will understand that it has business intelligence and data science. Business intelligence is a combination of data warehousing and management information. On the other side, data science consists of deep learning, machine learning, and artificial intelligence. In addition to this, it has big data technologies.
Business intelligence provides a detailed report to the business managers. With the help of this, business managers can take an effective step to prevent credit card fraud. The advanced business intelligence will also provide a report that will show the action taken by the credit card fraud detection system.
Credit Card Fraud Detection And Prevention
Well, credit card fraud detection includes certain activities. Financial institutions implement this to prevent credit card fraudulent transactions. Well, the fraudsters can use different methods to make credit card frauds. Therefore, there are certain things that are considered in the process of credit card fraud detection. These are geolocation, IP address, historic transaction patterns, original transaction information, global longitude and latitude, BIN data, and man more. The merchants as well as the card issuers set analytical algorithms that will work as credit card fraud detection. In the end, the merchants will face no complexities while accepting online payment. The customers on the other side will not hesitate to make credit card transactions or mobile wallets such as Apple Pay or Google Pay transactions.
Well, over the course of technology, financial institutions have upgraded their security system. Nowadays, these institutions have been using Machine Learning. The Data Science team utilizes this method in order to develop a model that will prevent credit card fraudulent transactions. Well, in the case of Machine Learning, several things get involved such as user zone, amount, product category, data, and the behavioral patterns of the clients. With the help of this information, the Machine Learning technology determines whether the transaction is fraud or not.
Different Types Of Credit Card Fraud
Well, if you want to know more about credit card fraud detection, you must know different types of credit card fraud. These are clone transactions, account theft as well as suspicious transactions, credit card skimming, false application fraud, Card Not Present fraud transaction, account takeover, and phishing.
Not A Rapidcents Merchant?
Rapidcents is one of the best online credit card processor. If you want to accept credit card payments from online cardholders, you must need a merchant account. So, Rapidcents will add a lot of value to your business. The fraud prevention service from Rapidcents will make your online business risk-free and less complicated. So, be a user of Rapidcents as early as possible.