Kount Blog
Blog Against Fraud

2016 Recap: Do Record Online and Mobile Sales Equal Record Fraud?

Posted on Tuesday, February 28, 2017

According to comScore, U.S. online sales – both desktop eCommerce and mobile sales – grew by double digits in 2016:

Online holiday sales were the best in history:

  • $109.3 billion in Q4 online business
  • Mobile commerce was up 45% in Q4 2016 compared to 2015, comprising 21% of all Q4 online sales
  • 30 “billion dollar days” in online spending during 2016 holiday season, effectively doubling 2015’s 16 days of $1billion/day
  • 19% increase in online spending on Black Friday and 17% increase on Cyber Monday versus 2015
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Topics: 2016, online spending

PSPs: Is Portfolio-Level Fraud Prevention a Viable Option for You?

Posted on Thursday, February 23, 2017

A growing number of Payment Service Providers – including BlueSnap, Braintree, Chase Paymentech, GoECart, Magento, and X-Cart -- are offering portfolio-level fraud prevention as a baseline service to their merchant accounts.

As a result, they’ve seen some impressive results:

  • “Our business has doubled while the chargeback rate for our merchants has declined 500%,” says John Johansen, Fraud Manager at BlueSnap.
  • Portfolio-level fraud prevention helps Braintree deliver next-generation online and mobile purchasing experiences to innovators like Airbnb, Angry Birds, Fab, Hotel Tonight, TaskRabbit and Uber. "Braintree’s payment platform will help us manage fraud without dedicating resources or integrating with a third party,” reports Vlad Gurgov, CTO and co-founder of Virool. “We’re confident we have the right partner to help us recognize fraudulent activity and take action immediately, so we can focus on our business."
  • Manish Chowdhary, CEO of GoECart, points out another benefit: “GoECart clients will enjoy a seamless and rapid onboarding process as well as great pricing for the solution.”
  • Of course, merchants see big benefits too. Chase Paymentech merchants saw their chargebacks drop 30% to 50%. Other merchants saw increases in their top-line revenues. One top Internet retailer handling more than 25,000 orders per day was able to consolidate its fraud review program to a single full-time employee.
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Topics: portfolio level fraud prevention, payment service providers

A Clever Way to Improve Mobile Commerce Conversions for Electronics Retailers

Posted on Tuesday, February 21, 2017

Retail eCommerce spending via smartphones and tablets boomed in Q4 of 2016, up 45% over 2015. In fact, mobile accounted for 21 percent of total digital commerce dollars spent in the quarter, mobile’s highest recorded share of online sales ever.

And guess what? Mobile fraud is keeping pace. In 2015, the number of fraudulent transactions on mobile devices increased by 142% compared to 2014. And there’s no slowdown in sight, with CNP fraud losses projected to soar 80% by 2020.

For online Electronics retailers, this presents a dilemma. Customers and their money are obviously pouring in via the mobile channel, and you want to capture those orders. Yet with mobile fraud also soaring, you also risk higher fraud losses.

This is where the clever part comes in. There are fraud prevention solutions out there that actually help improve mobile conversion rates (while reducing fraud)! How is this possible?

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Topics: mobile commerce, mobile device, electronics retailers

The Bachelor: Kount Tells All - Round 2

Posted on Monday, February 20, 2017

By: Don Bush, VP of Marketing at Kount

While some may be hesitant to admit it, I am, in fact, a (semi-willing) member of Bachelor Nation. Last year, you may recall that I wrote a piece likening the bachelor to a fraudster.

Because we are equal opportunists here at Kount—it is the contestants’ turn to get the fraud treatment. While Nick Viall is no saint on this journey, the ladies’ actions are too similar to fraudsters attempting to trick online merchants for me to believe that happily ever after is in the cards for poor Nick.

As we head into hometown dates, here is our second Bachelor Fraudster Tell All—ladies edition!

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Topics: fraudster, merchant, the bachelor

PSPs: 5 Best Practices for Enterprise-Class Fraud Prevention

Posted on Thursday, February 16, 2017

Payment Service Providers (PSPs) like BlueSnap, Braintree, Chase Paymentech, GoECart, Magento, and X-Cart are offering portfolio-level fraud prevention as a baseline service to their merchants. This type of value-added offering is helping these issuers, acquirers, payment processors, payment gateways, eCommerce platforms, etc.:

  • Win new accounts and reduce churn
  • Minimize the financial and regulatory risks of onboarding and underwriting merchants

If you are a PSP exploring platform-wide fraud prevention as a strategy for overcoming the Top 7 Challenges Payment Service Providers Are Facing, it’s critical that you understand the best practices for enterprise-class fraud prevention in order to achieve maximum ROI:

  1. Sophisticated Screening and Analytics
  2. Real-Time Fraud and Risk Data
  3. Advanced AI and Machine Learning
  4. Expert Human Intelligence
  5. Portfolio Underwriting
Read More

Topics: fraud prevention, payment service providers

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