Lauren Hebert Research- Volusion Announces Credit Card Fraud Protection Service for Online Store Owners{Comments Off on Lauren Hebert Research- Volusion Announces Credit Card Fraud Protection Service for Online Store Owners}


by Lauren H
Lauren Hebert

Is 130

Research Paper

Volusion Announces Credit Card Fraud Protection Service for Online Store Owners

For my research paper, I decided to pick a company who is taking a stand on online credit card fraud, Volusion.  Now, some people may say that this type of card fraud is not a big deal, or that it is not as traumatic as ID theft, or bank account theft, however I think that this is a very pressing issue and is only growing with sophistication both for the preventers as well as those who commit the fraud.  Technology is becoming faster, smarter, and more available, as are the thieves who steal people’s credit card information while online and are completely oblivious as to the risk they are taking.

First, a few facts about online fraud: “In 2009, the number of personal records that hackers exposed – data like Social Security numbers, medical records and credit card information tied to an individual – exceeded 220 million records, compared with 35 million in 2008.” (Businesswire)  This huge increase in hacks should raise more than a few red flags.  There are also five categories that credit card fraud falls into: counterfeit cards, lost/stolen cards, no-card, non-receipt, and identity theft.  Between these categories, credit card fraud costs both the credit companies as well as the holders about $500 million per year.  Well, Volusion is leading the pack as just one of the companies trying to put a stop to this unfortunate reality, and their CEO Kevin Sproles believes in making a change to better the overall economy.  “Reducing fraud is critical to maintaining a healthy revenue stream, and Volusion has always made security a top priority with our industry-leading PCI/CISP certification status,” said Kevin Sproles, CEO of Volusion. “Fraud Score is designed to offer merchants even more protection and better revenue assurance.” (Businesswire)  With this belief they have developed a new credit card fraud protection called Fraud Score.

Fraud Score is a software platform designed to help companies detect fake or fraudulent orders before the payments are processed and it is too late.  It checks more than 15 fields such as addresses, email, bank numbers, and history in order to see trends or patterns of fraudulent behaviors to hopefully reduce the amount of chargeback’s for companies.  This means it is saving companies time and money they would have spent finding the fraud, reporting and trying to correct the damage in the first place.  Fraud Score is designed to let companies see a score given to orders by Volusion in the order details page, ranging from 0-300, identifying the amount of risk associated with the order to be processed.  Volusion also provides detailed information as to why they ranked the order as such and the score explanation, so the business can more easily make a decision as to process it or not.  The fields used in the score include AVS, history, geographical IP checking, proxy detection, email and login checking, and issuing BIN checks.  AVS or address verification system verifies the billing addresses to make sure it matches with on file.  History is checked to see if there is fraud committed in the past, as well as checking email records to make sure they are clean.  IP checking assures merchants that the location of a customer is not in a high risk area otherwise the score should match.  Proxy detection ensures the customer is using their own computer information and not someone else’s, and bank identification number checks ensure the cardholder’s back and card information match.  These all add to the benefits of Volusion services and keep them at the top of their competition for anti-fraud software.

At the end of the day, there will always be people who do not care, do not know but do not want to know, or people who just ignore the fact that online credit card fraud is an ever evolving immense problem in the world.  It can be the most devastating and invasive thing to happen to a person as well as cost businesses time and money, and it is unfortunate that some people just turn the other cheek.  Personally, I feel extra precautious when it comes to online shopping, bill paying or almost anything else online, and am relieved that there are companies like Volusion who help businesses make decisions that much easier by assessing risk for them.  In the future, if I open my own business and process orders online, I will be especially thankful like many companies are today.

References:

–          http://www.businesswire.com/news/home/20100211005796/en/Volusion-Announces-Credit-Card-Fraud-Protection-Service

–          http://www.creditcards.com/credit-card-news/credit-card-industry-facts-personal-debt-statistics-1276.php#Identity-theft-fraud

–          http://www.consumeraction.org/english/articles/recognizing_credit_card_fraud_english

–          http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre07.shtm

–          http://www.scambusters.org/reports/walker.html

–          http://www.spamlaws.com/credit-fraud-stats.html

–          http://www.volusion.com/ecommerce/add-ons/