February 4, 2014
This is a guest post from Lily Varon, a researcher serving eBusiness & Channel Strategy professionals
Data breaches. Customer payment and identity information hacked. Executive apology emails. Frustrated customers. The many steps to regain customer trust. It’s an all too familiar story these days (check out this cool data graphic on the topic).
So what does it mean for eBusiness professionals? Well, eBusiness professionals are responsible for the profitability of the online channel, and secure and efficient transactions are absolutely essential to eCommerce profitability. When it comes to battling fraud, eBusiness professionals often face a conundrum: The tightest fraud controls can be a usability disaster leading to abandoned shopping carts, while the most friction-free checkout processes can pose a payment fraud risk if not executed carefully.
Essentially, eCommerce fraud management is a balancing act that keeps changing, with the following trends marking the industry:
- eCommerce is becoming more global, and fraud patterns/considerations vary by geography.
- Fraudsters are following consumers as they begin to transact on digital devices beyond the PC (especially on mobile devices).
- Fraud is expanding beyond payments and into account takeover (the fraudster hijacks a legitimate registered customer account for unlawful purposes).
- There is significantly more volume and variety of data for eBusiness professionals to manage (big data problems, as it were).
So what are we to do? Seek help. eBusiness professionals are often looking to partner with eCommerce fraud management solution providers to help manage and streamline these complex processes. But the vendor landscape is diverse, with various approaches and offerings, leaving eBusiness professionals unclear of which eCommerce fraud management solution will best serve their needs.
Together with security and risk analyst Andras Cser and commerce technology analyst Peter Sheldon, we just published a report to help eBusiness professionals navigate the maze of solutions and vendors at hand to help them meet the global fraud management challenge. In ourreport, we offer an overview of nine established fraud management solution providers with offerings in the eCommerce space. The vendors we looked at were:
Accertify, CA Technologies, CyberSource, DataCash, Easy Solutions, iovation, Kount, ReD (Retail Decisions), and ThreatMetrix
Forrester clients who are keen to learn more about the solutions and factors they should consider when choosing a payment service provider should schedule an inquiry with us to discuss further. I look forward to your comments.