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Posted February 4, 2010
Trend Speaks to Growth in Credit Card Fraud and Need for New Fraud Prevention Tools
LOS ALTOS, CA–January 26, 2010–ThreatMetrix™, the fastest growing provider of device identification solutions for preventing online fraud, today announced the results of at new research report in online banking, “Trends in Online Banking: Fraud Prevention and Customer Authentication.”
The survey was conducted in Q4 2009 and was performed by Gatepoint Research in conjunction with ThreatMetrix. Over 2,079 senior level executives, with 66% of the respondents employed by companies having annual revenues of $5 billion or more, were invited to participate.
“With the online banking community under assault every day from highly sophisticated, well organized, and motivated, professional fraudsters, it’s really not surprising that executives would cite new online credit card account registrations as their number one major source of risk resulting in financial loss,” said Tom Grubb, vice president of marketing, ThreatMetrix. “But the surprise finding in the report was that 61% of respondents felt that preventing fraud was more important to their online business than customer convenience. The reality is that customer satisfaction can’t take a back seat to reducing online fraud. Companies need to combat online fraud and focus on customer success and satisfaction.”
According to Grubb, banks and merchants spend large sums of money to identify and block suspicious credit card purchases and applications, but many of these technologies were designed to prevent fraud by means other than the Internet. The result is that in their eagerness to reduce online fraud, many banks and merchants have also unwittingly blocked legitimate orders thereby leading to lost valid orders, long-term damage to their brands, and a negative customer experience.
Other key findings from the report include:
For a free copy of “Trends in Online Banking: Fraud Prevention and Customer Authentication,” go to http://tinyurl.com/tmxgpq1.
ThreatMetrix (www.threatmetrix.com) helps companies control online fraud and abuse in real time so they can significantly reduce on-line fraud, acquire more customers faster, reduce costs, and increase customer satisfaction. ThreatMetrix profiles the device used in an online transaction so companies can determine whether the users are fraudsters or customers. ThreatMetrix’ simple and cost-effective SaaS approach to implementation enables companies to get results in hours or days, rather than weeks or months. ThreatMetrix serves a rapidly growing customer base in the U.S. and around the world across a variety of industries including online retail, financial, social networks, and alternative payments.