5 Things You Can do Today to Reduce Fraud

Here is a short list of five easy things that you can do to help significantly reduce fraud. None of the tactics suggested below are golden eggs but when used in combination together they can help build a very strong picture of risk.   1. Enable dynamic 3DS 2.0 requests on first time card transactions… Continue reading 5 Things You Can do Today to Reduce Fraud

Here is a short list of five easy things that you can do to help significantly reduce fraud. None of the tactics suggested below are golden eggs but when used in combination together they can help build a very strong picture of risk.

 

1. Enable dynamic 3DS 2.0 requests on first time card transactions

3DS 2.0 is a type of card verification that requires the card owner to input a one time password (OTP) into the payment flow. It is different to 3DS 1.0 as this older standard often requires information like a date of birth which can easily be found online rather than a password to the phone number or banking app of the holder.

 

The downside of this approach is that adoption in the market is not 100%. Many smaller banks, savings and loans etc in the US cannot perform a 3DS 2.0 challenge and it might be new to the customer. So in a low adoption market it should be used with some caution.

Unlike 3DS 1.0 which is triggered by the bank 3DS 2.0 allows the merchant, to request a 3DS check. So if you have a new customer buying a high risk product for the first time or using a new card for the first time it might be sensible to force a 3DS 2.0 request rather than hoping the bank will.

This will reduce your risk and if it’s just for the first transaction or first use of a new card it will reduce your risk significantly.

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