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Using AVS and CVV2 To Prevent Internet
Fraud
By: Ewebsecure
AVS stands for "Address Verification System" while CVV2 stands
for "Card Verification System" or "Cardmember ID".
AVS is used to verify if the shipping address and the billing address
match in the order. This helps merchants confirm that they are indeed
shipping to the address of the actual card holder.
If the address does not match, the selling merchant should then be cautious
about whether they should ship the goods ordered. Many retailers will
not ship to an order that is not going to the billing address for fear
of a fraud. In our experience, and having looked at over one hundred thousand
orders, these businesses give up many legitimate customers because they
screen too tightly.
Don't Lose Real Customers To Online Fraud
Screening too tightly will usually cost you more business then you save
in fraud. Implementing a balanced risk approach with proper fraud prevention
techniques will allow your business to grow sales, keep customers happy,
while screening problems out. This is especially critical on the internet,
much business is generated through word of mouth, and each customer must
be hard earned and serviced to keep the business healthy.
Merchant provider below are the larger suppliers, however, you may find
many others that may suit your needs:
Merchant providers will supply the business with proper screening tools.
Both the AVS and CVV2 tools are essential in screening for fraud orders
and should be implemented in any e-commerce system. It is important to
note, not all cards will be able to be screened for AVS or CVV2 as they
are not connected to the verification system. Although more and more companies
are being networked into the process, business will many times find themselves
in the dark, and will have to rely on their own internal process.
Why Is It Important To Screen For Fraud?
Screening helps stop losses to the bottom line. Any cost of good lost
to a fraud, is a straight loss while each loss requires the sale of many
real goods to compensate.
Fraudsters also learn that if they can succeed once, they will succeed
again and continue to attack your business. Any business hoping for a
future with e-commerce must implement the proper systems and acquire the
proper tools as fraudsters will eventually come.
Over time, with successful screening, fraud attempts will reduce, as
the criminal element learns a business is savvy at detecting and stopping
fraud. This will free up employee time to attend to more beneficial tasks.
How To Develop Your System - Protect From Fraud
AVS can work to screen at different levels. It can be used to confirm
the actual address line, city, state or zip. When an order is submitted
it can generate a "score" of what matches and what didn't. Systems
can be set up to reject orders if they do not match one or a combination
of all, or allow information to pass for screening after order submission.
CVV2 numbers help filter fraud attempts, as they were designed to have
the real customer hold the card physically in their hand when placing
an order. CVV2 numbers are the last three digits printed on the back of
your Visa or MasterCard. On an American Express, it is the four digit
number on the front. However, CVV2 information is readily available to
fraudsters and has lost it's effect as a screening tool.
Although the AVS system is of great assistance in screening, most fraudsters
have developed tactics beyond this. They know that many businesses don't
want to lose customers that may choose to ship to an alternate address.
Many customers, for various reasons do. They could represent their company
and use a personal card to make a purchase, they could have recently moved,
they want to send items ad a gift etc. Fraudsters know this and keep attempting
orders continuously, hoping they will find a hole in your system as you
try to meet your daily customer orders.
Detect, Deter and Report
Our company helps businesses develop a system for detecting, deterring
and reporting fraud. Based on law enforcement expertise combined with
e-commerce experience, our system was developed to help businesses fight
back and save time and money for both new and or seasoned businesses.
When a business becomes a customer, we provide them with the skills and
tools to screen for fraud. Just as critically, we provide a one stop,
simple reporting mechanism. As part of the security we provide, we report
fraud attempts to local law enforcement, directing them to attend locations
of ship to addresses, sometimes within hours of an offence.
Police attendance at the addresses will help identify suspects and perhaps
locate other stolen goods, identify other victims and stop online credit
card fraud networks from continuing to function. If a suspect is charged,
we represent the business victim in court, will testify and prosecute
on their behalf, providing ultimate proof to fraudsters that your company
is serious about convicting fraudsters and provide real teeth to your
fraud prevention programs.
With our connection with the carriers, we streamline reporting of fraud
addresses for flagging, stopping any and all packages that may be shipped
to the fraud address. The carriers then can work backwards to identify
any other victims with packages heading toward the fraudulent destination.
Finally criminals know that when they see our certification symbol, the
business has been trained, it will detect and report a fraud attempt which
will result in police enforcement action against them in the reduction
of stolen goods and wasted efforts on their behalf. Benefits are immediate,
and from less then $1 a day, we can provide a service that you will yield
returns many times greater. Even experienced companies that know how to
defend against fraud can benefit tremendously.
Having a fraud detection system in place is critical to any business
wanting to succeed on the internet. Contact us today to learn how we can
help you.
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