Our CRO, Oleg Stefanets was recently interviewed by Electronic Payments International where he discussed the growing e-commerce market and the accompanying rise in fraud risks, particularly card-not-present (CNP) fraud, which is expected to increase significantly by 2026. The interview emphasized the critical role of payment providers in helping merchants mitigate these risks.
Rising Risks: CNP fraud is a significant challenge, especially for merchants dealing in high-value physical products like electronics or jewelry. Regulatory interventions such as Secure Customer Authentication (SCA) in Europe aim to address this, but chargeback fraud remains a key risk.
The Power of Data: Both merchants and payment providers gather valuable data with each transaction, which can be utilized to identify abnormalities and emerging trends in purchases. Collaboration between merchants and providers in sharing and analyzing this data can enhance fraud management capabilities.
Robust Compliance: Compliance with stringent regulatory frameworks is essential to combat fraud. Payment providers play a crucial role in guiding merchants through regulatory processes and adapting their services to ensure compliance.
Leveraging Technology: Advanced technologies like machine learning (ML) and artificial intelligence (AI) are key tools in fraud detection and prevention. These technologies enable payment providers to identify potential fraudulent behavior with precision and in real-time.
Collaborative Approach: Reducing fraud risk requires collaboration between merchants and payment providers. By sharing data, implementing compliance measures, and leveraging advanced technologies, they can create a safer e-commerce ecosystem.
Overall, the article emphasizes the importance of collaboration between merchants and payment providers in combating fraud and creating a safer environment for e-commerce transactions.
You can read the full article HERE.