WhyLabs Lays Open the Ways of Credit Card Fraud and Offers Effective Solution of an Ever Increasing Problem

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WhyLabs focuses on online credit card fraud research revealing various types of fraud and developing effective ways of preventing it. Lion’s share of time is contributed to research of affiliate fraud which leads to chargebacks increase. WhyLabs announces ways of preventing affiliate fraud.

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We offer our clients Tailored Fraud Scoring System that will eliminate possibility to lose honest purchasers and at the same time decrease money waste for telephone verification which is at the average $1 per one transaction. I don’t include expenses for the working place, internet, taxes etc. We customize the system to the unique needs of every business.

WhyLabs carried out a profound research on all types of online credit card fraud and developed the ways of preventing them effectively.

Today many online ecommerce websites utilize the "affiliate" method of advertising. It results in Affiliate Fraud expansion. About 5% of e-business come across with this problem, 10% of merchant accounts out of this number were deactivated for the reason of exceeding chargeback’s limit.

Obtaining database of proxy servers and credit card numbers with the help of bot-net program fraudulent affiliate imitates fake traffic to the merchant’s website making purchases himself. Merchant’s loses are: 1) money (chargebacks, revenue share to affiliate,); 2) chargebacks increase (merchant account deactivation); 3) penalty charges by bank.

WhyLabs forged proprietary Affiliate Fraud Prevention System (AFPS) which points out unfair affiliates. AFPS groups the transactions initiated by every affiliate and compares them with a view to similarity of some essential transaction's

parameters alerting that all these transactions were made by one person. The system indicates suspicious adverts and gives a merchant the ability to shut their accounts off at the early stage.

Common online fraud has several models. It depends on the product provided online. To make fraudulent transaction while purchasing downloadable product carder needs only Proxy server and credit card data which are available at many online forums. Following detailed instructions published in online articles and forums every person can easily carry out a fraudulent transaction. It will cost him nothing. It can be done even by a cub.

To prevent this type of fraud WhyLabs applies constantly updated Black lists of Proxy servers identifying those being caught cheating; GEO Location Module determines cardholder’s location and match it with credit card data (BIN). In case the purchaser is located in Florida and the credit card was issued by a bank in California, WL system will increase the transaction fraud score but not to the peak as it can be valid cardholder who just went on holidays to Florida and decided to buy something online. With the purpose to avoid loss of honest clients the system verifies other transaction’s parameters to determine if it is low, medium or high-risky transaction.

To make fraudulent transaction while purchasing tangible product is much complicated as, apart from proxy server and credit card data, the carder needs valid Shipping address which is not far from Billing address; telephone number where somebody will answer and confirm the purchase; sometimes merchants even require copy of a pass or credit card to be sent via email or fax. To obtain “valid” Shipping address is difficult. Carders look for people called “droppers” who agree to receive the shipped product and pretend to be the purchaser. Dropper receives up to 50% of revenue.    

The best way to prevent such fraud seems to be telephone verification of every transaction. Telephone verification is expensive and not always effective. Experienced carders predict this step and buy fake phone number in the same state and region with billing address to confirm the purchase sending scan of a pass by email or fax. Chief Officer of WhyLabs, Denis Drausset states, “We offer our clients Tailored Fraud Scoring System that will eliminate possibility to lose honest purchasers and at the same time decrease money waste for telephone verification which is at the average $1 per one transaction. I don’t include expenses for the working place, internet, taxes etc. We customize the system to the unique needs of every business.”

Drausset concludes: “WhyLabs’ team appeals to all merchants to share problems you face selling online and fight against online fraud together. Comment on the press release describing main problems and desires on the fraud screening system you want to have. We are constantly updating our anti-fraud system developing new effective scrubbing tools. We are ready to take into consideration all your comments, criticism and wishes to make fraud screening system tuned to your needs.”

For further information on WhyLabs Corp. and the services they provide, please visit http://www.whylabs.com/

Contact:

Julia Willson

WhyLabs Corp.

1-800-687-4187

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