Digital Goods Merchants Struggling to Keep Control of Their Fraud Problem, says Global Risk Technologies™
The CIO of Global Risk Technologies™, Monica Eaton-Cardone, was featured in Retail Times this week, discussing the new findings released by Javelin Strategy & Research.
The new report focuses on the financial burden merchants face with in-house fraud management. As the CIO of a risk mitigation firm that specialises in chargeback prevention, Eaton-Cardone is well versed on this topic.
Eaton-Cardone emphasizes how important it is to invest in fraud prevention, but stresses that it does not need to be so costly to the merchant.
“The need for investment in fraud prevention and fraud management is undisputed, but the statistics outlined in the report clearly show that in-house management of fraud is placing more of a financial burden on fraud management teams than it needs to.”
The report uncovered the shocking statistic that 30% of fraud and chargeback management costs are directly related to hiring and training the staff. This is a large expense that could be saved if a third party specialist was employed to do what they do best. It will save the merchant time and money, and with the increasing threat of fraud in the card-not-present environment it is essential that all merchants realise the actual threat to their business and protect themselves accordingly.
“The Javelin report underscores the fact that this issue is not going away, illustrating the financial cost of going it alone.”
The threat of fraud is becoming larger and more sophisticated; it is important merchants have the right system in place to ensure they do not lose even more revenue to fraud because they are implementing the incorrect systems.
Read the article in full here
