TAMPA BAY, Fla. (PRWEB) February 19, 2018
Fraud-related costs accounted for 8% of retailers’ revenue in 2017, averaging $15.5 million per merchant;(1) and with global card fraud projected to surpass $25 billion this year and $30 billion by 2020,(2) current trends suggest those costs will continue to grow. CFOs are beginning to recognize the limitations of their existing fraud-prevention efforts—while 56% currently rely primarily on internal resources, 56% of CFOs also said they anticipate changes to their company’s anti-fraud strategy within the next two years.(3) Chargebacks911, a leading dispute mitigation and loss prevention firm, examines the latest fraud statistics and explains why a growing number of CFOs see outsourcing as a better solution.
Following the U.S. transition to EMV chip cards in 2015, merchants have faced growing levels of card-not-present (CNP) fraud. In a recent survey of CFOs, 64% reported an increase in both the number and dollar amount of chargebacks linked to CNP transactions. Among eCommerce companies, that number is even higher—82% experienced a surge in CNP chargebacks. Faced with fraudsters’ evolving and increasingly sophisticated tactics, 3 in 4 CFOs say they are likely to outsource some or all of their company’s fraud detection and assessment activities, with 32% “somewhat likely” and 43% “very likely” to do so. Among eCommerce merchants, 69% of CFOs say they are “very likely” to outsource those efforts.(3)
“While retailers typically have a number of teams engaged in fighting fraud—from IT to order fulfillment—it’s ultimately the CFO’s responsibility to minimize losses and maximize revenue,” noted Monica Eaton-Cardone, co-founder and Chief Operating Officer (COO) of Chargebacks911. “Many CFOs are realizing their internal resources aren’t able to keep pace with today’s emerging fraud strategies. Hiring more in-house staff is an added expense that doesn’t always deliver a return on investment, which is why a growing number of CFOs have found it’s more effective and cost-efficient to outsource fraud prevention to the experts.”
As technology and fraud threats continue to change, companies that rely on internal fraud-prevention resources have to continuously reinvest in new systems, software and training. Eaton-Cardone says in-house teams may also struggle to play catch-up as fraudsters find new ways to exploit weaknesses—by the time they identify losses resulting from the latest fraud trick and implement appropriate countermeasures, criminals have already moved on to the next tactic. She also maintains that merchants must be prepared to fight friendly fraud just as aggressively as criminal fraud. From 2016 to 2017, chargebacks climbed 60% for digital-goods merchants and 75% for physical-goods merchants,(1) which is why Eaton-Cardone urges retailers to proactively respond to all disputes to prevent further losses.
“When merchants outsource their loss prevention and dispute mitigation activities to Chargebacks911, they can be confident they have access to the latest fraud-fighting tools and expert insights because that is our sole focus,” explained Eaton-Cardone. “We work with thousands of clients across 87 countries, which means we’re able to discover new fraud tactics and develop solutions far more quickly than any individual merchant. In addition, our Intelligent Source Detection technology allows us to pinpoint the true source of chargebacks and implement appropriate remedies. We also have an extremely successful track record in tactical chargeback representment, which is why we guarantee clients’ ROI and win rates.”
Chargebacks911 is dedicated to educating and supporting eCommerce merchants with services designed to optimize profits, reduce chargebacks and combat fraud. To that end, Monica Eaton-Cardone and her team will be participating in a number of upcoming industry events, including the 2018 Travel Fraud Symposium in London, Merchants Payment Ecosystem 2018 in Berlin and the 10X Growth Conference in Las Vegas. For details on Chargebacks911’s comprehensive risk management solutions, informative articles and other merchant resources, visit https://chargebacks911.com.
Chargebacks911, known as The Chargeback Company in Europe, safeguards over 2.4 billion online transactions every year, representing clients in 87 different countries. It is the first global company fully dedicated to mitigating chargeback risk and eliminating chargeback fraud, and the company has won the Customer Choice Award for Best Chargeback Management Solution at the CardNotPresent Awards for two years in succession. As industry-leading innovators, Chargebacks911 is credited with developing the most effective strategies for helping businesses maximize revenue and reduce loss in a variety of industries and sectors within the payments space.
Chargebacks911 provides comprehensive and highly scalable solutions for chargeback compliance, handling services and fraud strategy management. With unparalleled category experience and Intelligence Source Detection (ISD™) technology, Chargebacks911 identifies the true source of chargebacks, optimizes revenue recovery opportunities, mediates disputes, safeguards reputations, monitors transactions 24/7 and helps proactively prevent future fraud. To learn more about Chargebacks911, visit http://www.chargebacks911.com.
1. Javelin Strategy & Research. 2017 Financial Impact of Fraud Study: Exploring the Impact of Fraud in a Digital World; September 2017.
2. HSN Consultants, Inc. “Card Fraud Losses Reach $22.80 Billion”; The Nilson Report; issue 1118, October 2017.
3. CFO Research/Vesta Corporation. Managing the Risk of Fraud: The View From Corporate Finance; June 2017.