Internet trust services company VeriSign
fraud screening service that allows online merchants to distinguish between
legitimate shoppers and fraudulent users in real-time.
The Payflow Fraud Screen Service, aimed at reducing merchant liability
for stolen goods and services, is based on the eFalcon intelligent fraud
scoring technology from HNC Software
arrangements between the companies were not disclosed.
The eFalcon fraud-scoring model is based on technologies developed over a
period by HNC and is currently used to protect the transactions of more than
300 million credit card holders, in both the physical and digital world.
Most e-businesses incur chargebacks for the full value of any fraudulent,
Web-based credit-card purchases. VeriSign said its Payflow Fraud Screen
Service brings “tremendous speed” to the processing of fraud scoring
transactions, enabling merchants to automate previously cumbersome,
time-consuming risk-management procedures.
The service is integrated with
VeriSign’s Payment Services application, enabling online
merchants to complete authorization and fraud evaluation of Internet credit
card purchases in a single transaction request.
eFalcon uses sophisticated neural networks and advanced data mining
techniques to uncover an individual cardholder’s buying patterns, raising
caution flags when patterns are abnormal.
When an online merchant transmits a credit card transaction to the Payflow
Fraud Screen Service for authorization and fraud evaluation, the service
assigns each prospective transaction a ‘score’ expressed as a number from 1
to 999, based on established variables that are valid in predicting
fraudulent purchasing behaviors.
The higher the score, the more likely the
transaction is fraudulent. Businesses decide in advance what level of risk is
acceptable while automating the order acceptance process.
Meanwhile, TeleCheck Services Inc., a
check acceptance company and a subsidiary of First Data Corp.
and Internet Billing Co. Ltd. (ibill), a
provider of e-cashflow business solutions, said that they will combine their
fraud control and billing expertise to provide products and services designed
to help retailers reduce the risks of online credit card fraud.
TeleCheck and ibill said they will jointly develop and market an online
credit card fraud control solution slated for release early next quarter. As
a seamless part of online transaction processing, the solution will evaluate
each transaction for evidence of fraud. Financial arrangements were not