When most people think about fraud prevention, only one thing comes to mind –
stopping fraudulent transactions. Just like walking and chewing gum at the same time is entirely possible, a strong fraud prevention program can stop fraud and maximize sales to boost revenue simultaneously. The goal of a comprehensive fraud strategy should be to allow as many possible legitimate transactions to go through, and to stop only the bad ones. Many "set it and forget it" services apply too strict of rules – so while they are stopping fraudulent cases, they are also limiting the amount of total sales that go through.
The goal of most online businesses is to grow revenue, increase market share and maintain an expanding base of happy customers. Expanding into new markets, adding new products, or reducing manual reviews can help or hinder growth, depending on what fraud strategy is behind each goal. Some businesses think that blocking transactions from one particular region, or stopping sales via one specific channel that has higher fraud rates than the rest, will allow them to sidestep fraud. But think of how many legitimate sales they are missing out on by doing so. It’s the equivalent of jailing 10,000 people to catch 1,000 criminals. The 1,000 criminals might be behind bars, but so are 9,000 innocent people.
Kount’s fraud management solution gives online merchants the confidence to sell more products to more people in more places, expanding revenue opportunities – mitigating fraud, but boosting overall sales. Every business is different, and rules should be continuously monitored and tweaked until you reach the sweet spot – maximum fraud prevention without blocking legitimate transactions.
For more information about Kount’s services, watch this two minute video, Beat Fraud, Boost Sales™. Or check us out live – online at one of our webinars or in person at our award-winning Fraud360 events. You can learn about stopping fraud and boosting sales at the same time.