While traditional brick-and-mortar stores experience their fair share of fraudulent activity, e-commerce is more susceptible because of the global pool of criminals looking to take advantage of this technology. With an estimated $1.5 trillion in e-commerce revenues in 2013, the sector presents itself as a very attractive target. Signifyd, provider of fraud detection and prevention solutions, has launched an enterprise class e-commerce fraud platform with the technology capable of analyzing the footprint of fraudulent customers.
Signifyd was founded by former veteran risk and fraud experts from PayPal (News - Alert), Rajesh Ramanand and Mike Liberty, in 2011. Their solutions aim to help organizations simplify fraud detection so they can minimize losses to their business. Because merchants are estimated to lose one percent of revenue to fraud and an additional three percent to improperly declined transactions annually, it is essential to implement a security protocol to minimize the billions of dollars in losses.
This new solution by Signifyd analyzes data footprints to make the connection between online and offline consumer identities. The algorithm uses customer intelligence to determine if there is a risk of an incoming order in real-time. It analyzes 120 risk indicators, examining online and offline data sources, such as the Social Graph, device fingerprints, IP geo-location, proxy detection, customer history, issuing bank data, cross-merchant blacklists, transaction velocity, search engines and public records. Based on the results, it assigns a score to let merchants know the probability of fraud.
The company is so sure of this technology, it guarantees to pay any chargebacks resulting from approved transactions. It is the only top fraud vendor to stand behind its products with such a guarantee, the company says.
"E-commerce fraud detection has been one of the most critical and time consuming processes for online retailers, but most fraud detection tools aren’t suited for today’s cybercriminal who is becoming increasingly adept and advanced. We’re bringing much needed innovation to the fraud solution market. By using Signifyd, retailers can now make decisions in real time about the validity of a customer without worrying about a fraudulent transaction costing them money or a valid transaction being declined," said Rajesh Ramanand, co-founder and CEO of Signifyd.