ThreatMetrix Data Finds eCommerce Executives See Drop in Fraud Rates and Chargebacks Following Implementation of Comprehensive Fraud Prevention Solution
Posted October 23, 2014
According to a Recent ThreatMetrix Survey, 100 Percent of eCommerce Executives Have Seen a Measurable Decrease in Chargebacks While Using ThreatMetrix’s Solution
San Jose, CA – October 23, 2014 – ThreatMetrix®, the fastest-growing provider of context-based security and advanced fraud prevention solutions, today announced the results of a recent customer survey, which found that eCommerce executives have noted a significant decrease in fraud rates and chargebacks following the implementation of the ThreatMetrix Platform.
With the busiest eCommerce season fast approaching, putting secure fraud prevention tactics in place is a top priority for eCommerce executives. According to the National Retail Federation, the 2014 holiday shopping season is expected to bring in $616.9 billion, representing approximately 19.2 percent of the retail industry’s total annual sales. This high volume of sales condensed into a short period of time makes eCommerce sites a top cybercrime target.
“It’s critical that online merchants have a comprehensive solution to decrease fraud without impacting the customer experience, especially with so many customers flooding to eCommerce sites on Black Friday, Cyber Monday and throughout the holiday season,” said Ken Jochims, director of product marketing at ThreatMetrix. “By stopping suspicious account access and transactions businesses, can reduce the number of chargebacks and manual reviews resulting from fraudulent transactions.”
According to a recent ThreatMetrix survey conducted with TechValidate, 100 percent of eCommerce companies using the ThreatMetrix TrustDefender Cybercrime Protection Platform reported a decrease in chargebacks since implementing the platform with 50 percent of those respondents noting a 40 to 60 percent decrease in chargebacks. Additionally, three in four companies indicated their fraud rates decreased by more than 20 percent and a quarter of respondents saw a 60 to 80 percent decrease in fraud rates.
“eCommerce companies cannot afford to sit back and wait for their business to be hit with increased holiday fraud and then deal with it after the fact,” said Jochims. “The costs of paying for fraud – whether it’s card not present, account takeover or fraudulent account creation – far exceed the costs of preventative solutions that can stop cybercriminals at the front gates. However, solutions that add additional authentication steps for users lead to lost sales due to shopping cart abandonment are less than ideal. Online retailers need to implement a solution that effectively stops fraudulent activity and flags suspicious activity for additional screening all without changing the customer experience for trusted and returning users.”
The ThreatMetrix customer survey also found that, while the ThreatMetrix TrustDefender Cybercrime Protection Platform dramatically improved its eCommerce customers’ fraud detection, 100 percent of respondents experienced no additional friction to their customer experience with almost 60 percent of those having actually experienced revenue improvements of between five and 25 percent. Additionally, 35 percent of customers surveyed experienced more than a 40 percent reduction in manual reviews.
eCommerce sites cannot wait until November or December to implement new security strategies to better protect their business and customers during the holidays – the time to act is now. The use of advanced fraud prevention and context-based authentication helps online retailers combat fraud without creating additional authentication steps and friction for customers. The ThreatMetrix TrustDefender Cybercrime Protection Platform is powered by the ThreatMetrix® Global Trust Intelligence Network, which analyzes more than 850 million monthly transactions and combines device identification, threat assessments, identity and behavioral intelligence to accurately identify cybercriminals without creating friction for good users.
- Press Release: eCommerce Executives Value Stopping Fraud in Real Time as the Top Capability in an Advanced Fraud Prevention and Cybersecurity Solution
- Press Release: Mobile Attacks Listed as One of the Top Threats Facing E-Commerce Businesses
- Press Release: ThreatMetrix Outlines Strategies for E-Retailers to Avoid Adding Trusted Customers to Their Naughty Lists When Preventing Holiday Shopping Threats
- ThreatMetrix Cybercrime Prevention Summit 2014
ThreatMetrix builds trust on the Internet by offering market-leading advanced fraud prevention and frictionless context-based security solutions. These solutions authenticate consumer and workforce access to mission critical applications using real-time identity and access analytics that leverage the world’s largest trusted identity network.
ThreatMetrix secures enterprise applications against account takeover, payment fraud, fraudulent account registrations, malware, and data breaches. Underpinning the solution is the ThreatMetrix Digital Identity Network, which analyzes over 850 million monthly transactions and protects more than 210 million active user accounts across 3,000 customers and 15,000 websites.
The ThreatMetrix solution is deployed across a variety of industries, including financial services, enterprise, eCommerce, payments, social networks, government and insurance.
For more information, visit www.threatmetrix.com or call 1-408-200-5755.
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