What Fraud Detection Can Learn From Marketing
In our last installment, we walked through the reasons why retailers have so far focused almost exclusively on the point of sale when it come to fraud detection. Instead of making a snap-decision based on which transactions fit into a broad category based on simplistic location-based rules, we need to shift our focus to when the account is created in the first place. And it all comes down to intelligence gathering. Not Just For Retailers Typically, before a user makes …
Target’s Black Friday season security mishap put a harsh spotlight on consequences of less that stone-clad data security. It also demonstrated the comparative ease with which hackers can gain access to consumer data. The attack was made possible due to a malicious software which infected Target’s point-of-sale systems, resulting in the theft of customers’ names, phone numbers, email addresses, and mailing addresses in addition to their credit and debit card numbers. The Method of Attack With data security a hot 
In the e-commerce world, there are three common types of fraud: First Party Fraud Third Party Fraud Seller Fraud First Party Fraud This is when the customer is legitimately trying to scam you. In e-commerce this might be: Claiming a product wasn’t delivered Reading a book and requesting a refund Claiming they didn’t make the charge on the credit card What makes this difficult to combat is that it may be seasonal; recession time sees an increase in first party 
Most websites use the combination of usernames and passwords. Both are items that a user knows. Asking “what street did I grow up on”, is just asking more things that a user knows, firms that do this are just implementing more KBA’s. Economics of Authentication To use some basic economics, the addition of the password as opposed to not requiring validation has a huge marginal benefit to the company. Implementing a second, and third and forth has an ever decreasing