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Fraud or Foe?

Fraud or Foe?


Abdullah Abdelkafi


05 Aug 2019

Read time

3 Minutes



Internet shopping in the UK is more popular than in any other EU country. As retail sales rose over the last decade; 3% of those can be attributed to e-commerce sales. As 82% of UK residents purchased at least one item from an online shopfront in 2017, cybersecurity is striving to adapt.
With friendly fraud growing at a rate of 41% every 2 years, businesses are expected to lose an estimated £2.40 for every £1 in revenue due to fraud. Merchant services like ours act as the middleman, streamlining the process that you most definitely do not want to cut out.

**What is Fraud Scrubbing?**

Though the UK finance industry has lost £1.2 billion via fraudulent means.
Processes like fraud scrubbing have helped protect and prevent £1.6 billion in fraudulent transactions over 2018.
Total Processing’s payment solutions implement advanced and proprietary software throughout your relationship with consumers. In order to maintain absolute control over the commerce process on an efficient timeline; our software is practically autonomous.

**Fraud or Foe?**

Whilst fraud is ultimately suspicious, the increase in friendly fraud is partially recurring due to customer misunderstanding.
49% of friendly fraud chargebacks result from a customer filing a chargeback without realising it. Subsequently, 28% of the 32% of successful fraud attempts in 2016 were accounted for as friendly fraud cases. This leaves something to be said about the management and resolution of chargeback maintenance.

**How to Prevent Fraud:**

To prevent chargebacks where possible in all cases, the utilization of Total Processing’s hotlists is key.
As 8 out of 11 banks allow consumers to dispute transactions with relative ease, the blowback on businesses can significantly alter total revenue by providing false positives.

Of course, unauthorized fraud is still prevalent, as con artists have begun to target mobile commerce in recent years.
In fact, 33% of businesses reported more loss in the past year due to fraud.

True and non-authorized fraud begins with the assumed identity of the cardholder. In order to protect your business, our hotlist parameters offer you the ability to blacklist transactions from consumers based on their emails, BIN countries, IP addresses and Device IDs.

**The Details:**

Fraud scrubbing plays an integral part in keeping your business protected, and that’s why it forms a key part of Total Processing’s ethos in providing for and protecting its clients.

In verifying your business’s transaction data, our scrubbing services operate with specific criteria to be met – yours.

Our Merchant services streamline your business – determining whether transactions affecting your business are genuine or authentic.

Total Processing’s Global Risk database and Fraud Protection Suite filters out any suspicious or malicious activity almost autonomously.
With our variety of hotlists, you’ll have ease of access and management over any suspicious activity.

Our fraud scrubbing parameters also involve other data measures such as physical address verification and email address assessment.
These parameters also consider the assessment of real-time transaction authorization, as well as the review of previous fraud attempts.

In determining the typical nature of a consumer within your business, Total Processing will also implement transaction velocity checking within its fraud scrubbing model.
These checks follow on from fraud scrubbing and are carried out within a short and specific period in order to assess recurring patterns and relationships between transactions and the consumer.

As 75% of consumers prefer a security service that does not impact their customer experience, and 27% of consumers currently abandon a transaction due to lack of visible security; the revision of the European Union’s Payment Services Directive (PSD2 SCA) is set to help Merchants.

PSD2 SCA is poised to further reduce fraudulent activity in its increased requirements for customer authentication online. With multiple factor authorization required for transactions, less are likely to be flagged as suspicious.


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