Kount Blog
Blog Against Fraud

Horses Not Zebras: The Implications of Prior Probability

Posted on Friday, March 10, 2017

By: Josh Johnston, Data Scientist at Kount

You just tested positive for a rare disease. The test is 99% accurate, so you are almost certainly sick, right? Actually, you are almost certainly healthy. Read on to journey through some numbers to see why, and in the process learn how fraud is costing you money, even if your chargeback rate is under control. 

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Topics: chargeback, machine learning, prior probability

Infographic: The Fraud Landscape for Online Electronics Retailers

Posted on Thursday, March 9, 2017

It is hard to overstate the global influence of the consumer electronics industry today. For example, there are more mobile devices on Earth than people and that’s just one top-selling electronic category. And if you’re a successful electronics retailer in this competitive market, then you’ve likely been bold, innovative and push boundaries of sales & marketing efforts. You’ve certainly encountered fraud along the way. The following infographic highlights five interesting facts that might just change the way you approach selling electronics online.

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Topics: electronics retailers, electronics, infographic

5 Strategies to Fight Chargebacks

Posted on Tuesday, March 7, 2017

According to comScore, U.S. online sales – both desktop and mobile eCommerce – grew by double digits in 2016. Unfortunately, card-not-present fraud grew just as fast. In fact, 2016 saw the highest overall amount of eCommerce fraud ever. And 2017 is expected to see even higher eCommerce fraud as EMV and other forces shift fraud to the online realm.

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Topics: chargebacks, machine learning

Safely Approve Consumer Electronics Orders with Different Bill-To and Ship-To Addresses

Posted on Thursday, March 2, 2017

Fraud is a never-ending danger that constantly threatens online Electronics retailers. With electronics and computers a top 3 target for online fraudsters and criminal gangs, it makes sense to be especially vigilant when it comes to identifying common warning signs of fraud. Although the presence of fraud is not guaranteed, different bill-to and ship-to addresses are a favored tactic of fraudsters.

For this reason, most payment processors recommend extra screening and often suggest additional manual review steps, such as phone or email confirmation. But for online Electronics retailers, these additional processes can lead to:

  • Customer friction
  • Higher operating costs
  • Lost revenue from abandoned orders
  • Business lost to competitors
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Topics: ship to addresses, online electronics retailers

This is Not The Wall – Merchants Can’t Take a Chance on Fraud

Posted on Wednesday, March 1, 2017

Wild, unpredictable and fast moving – sounds like the makings for good TV, right? It’s also generally the way fraud happens. It’s unpredictable and non-linear… much like the new game show, The Wall. If you’ve not caught this new updated version of everyone’s old-school favorite, Plinko, this popular game show is actually a lot like
fraud. Merchants are vulnerable to fraud, but unlike the game show, merchants can’t afford to play this game without severe losses. And, there is no contract to sign that guarantees you winnings – the stakes are much higher than that. According to the U.S. Justice Department, credit fraud now costs businesses $5.5 billion a year, with the bulk of that coming from online transactions.

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Topics: mobile device, fraud, the wall

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Calculating the 9 Deadly Costs of Fraud
What You Don’t Know About Chargebacks