Enterprise Business Guide to Ecommerce Fraud Prevention Solutions

Chapter 7:
Build a Sustainable Fraud Solution

Your business has invested time and resources in developing your ecommerce department and fraud prevention team. But as adept as they are, they can’t be everything to everyone. There are simply too many new challenges in today’s ecommerce fraud landscape that pull on your resources and require fraud analysts to be always up-to-date experts.

That’s just not realistic.

The typical enterprise ecommerce fraud prevention team has anywhere from a handful to a few dozen employees. And that is when your team is fully staffed. If your fraud team experiences attrition during a busy season, there’s virtually no way to keep up with the number of transactions that require review and approvals. Even worse, you might be pulling an inexperienced team member from another department such as customer service to lighten the load. This is a sure-fire way to lose revenue.

But that doesn’t mean you should pack up your fraud prevention practices and hand them over to a third party. It would make no sense – especially given the institutional knowledge your team brings to the table.

What does make sense for an increasing number of enterprise ecommerce retailers is a strategy that includes augmenting your team to round out and improve your fraud prevention game.

“Some clients are reluctant to consider external fraud prevention because they think it equates to replacing their staff. At ClearSale, we assist their staff by bolstering their capacity, available data and skillsets, freeing them up to more effectively focus on the other responsibilities that help drive their business.”

Rick Sunzeri, ClearSale Director of Enterprise Clients

Rick Sunzeri, ClearSale Client Solutions Director 

In addition to ensuring your fraud team — both internal and external — are armed with as much knowledge as possible, it’s important to make sure they have expert-quality tools to hand.

Choose the Right Tools for Your In-House Fraud Team

Your fraud analysts can easily become overwhelmed with manually reviewing thousands of transactions. This may have them pulling resources from other departments – usually, customer service and warehouse staff – none of whom have fraud detection training or expertise.

So, let’s say you decide you need a tool to improve their efficiency.

Sure, your company has a staff, technical resources and budget to build a full-scale fraud prevention system in-house. But why would you, especially given how much of a loss your company will incur during development? A hybrid fraud solution partner can augment your capabilities with external tools — so you can maintain and sustain the same level of fraud prevention accuracy, no matter the situation.

Machine Learning/AI

In a hybrid solution like ClearSale’s, all transactions are screened using artificial intelligence and machine learning to process transactions and fine tune fraud models based on customer behavior. Transactions that pass with flying colors are automatically approved, and questionable or suspicious transactions are flagged for further review.

Machine learning/AI can also be used post-processing to validate decisions and help find patterns to be aware of moving forward. 

Fraud Managed Services

When it comes to chargebacks, in-house fraud teams often don’t have the time to chase down the necessary documentation required during the chargeback process, let alone dispute those chargebacks.

ClearSale’s team of fraud analysts and customer success managers can handle the entire chargeback process, freeing your team up for the important task of following up on suspicious orders.

Secondary Fraud Review with a Human Touch

Speaking of following up on suspicious orders, even that task can be time-consuming, which presents another opportunity for ClearSale to assist internal fraud teams.

Our data scientists and fraud analysts can help with secondary reviews of potentially fraudulent orders.

They use their expertise and understanding of fraud trends – while sharing that information with your team – to determine if a transaction is valid or not. And, if a company so chooses, our analysts can pleasantly and very diplomatically reach out directly to customers to confirm they made the purchase — all the while, training your team to do the same.

ClearSale helps in other ways. We’ll take a look in the next section.





To have access to all of the chapters of this report, please fill out the form below.