Robust, End-To-End Solutions Deflect Fraud
Online fraud is best avoided with "a well-balanced risk management approach composed of front-end physical security against hacking", says Wes Wilhelm, of HNC, "combined with fraud detection systems". While "the final key to balanced fraud prevention is the cost of customer inconvenience"Advanced statistical network models and neural network models provide a solution" to fraud, Wilhelm argues, but Gartner analyst, Avivah Litan, warns that 5 to 8 per cent of sales are lost to software that screens transactions for fraud. Fraud implies "a good news-bad news story" to the industry, according to Wilhelm, in that fraudsters' technological advances are matched by merchants' anti-fraud mechanisms. However, online fraud expert, Dan Clements, of CardCops.com, says US federal investigators are losing the battle against cybercrime, while Gartner says 5.2 per cent of online consumers have been victimized.
"Internet fraud does not have to be a significant cost of doing business if merchants stop using obsolete tools", Wilhelm asserts, but the reality is that online card 'bazaars' where hackers trade credit card data on a daily basis, often provide authentication data for an Related Links
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