Why Compliance Matters
Many companies are so focused on developing products and running their business that they ignore the growing need for a compliance management strategy.
According to the Verizon 2012 Data Breach Investigation Report, 92% of data breaches were discovered by third parties. This statistic tells me that most businesses only focus on compliance management when customers or partners tell them about a breach that has already occurred, or even worse, they see themselves on the news. By that time, however, it is already too late.
According to the same report, 97% of those attacks were easily avoidable. But if you’ve ever had to prepare for a compliance inspection, you know how easily it turns into a frantic scramble. So let me repeat: 97% of those attacks were easily avoidable. It’s not rocket science, it’s just sound business. Compliance directives encourage companies to act responsibly towards their customers, employees and business partners; to consider their environment and shareholders. Read the rest of this entry »
Filed under compliance management, data breach, Verizon 2012 Data Breach Investigation Report
Fraud prevention has always been an important part of the strategy of any e-business, but simply preventing as much fraud as possibly may be detrimental to your bottom line and your customers’ satisfaction.
We all know the obvious cost of fraud: A payment is processed, the product is delivered and the charge is disputed. However, maximizing accepted orders is just as important as minimizing fraud. If you only have your eye on minimizing fraud you may be leaving a lot of money on the table.
There are also other hidden costs to anti-fraud such as the cost of anti-fraud employees, the cost of decreased customer satisfaction by delaying orders in manual review (especially if they expect instant electronic delivery), the cost of rejecting a valid customer who seems suspicious but is in fact valid, and the direct and indirect costs of lost chargebacks.
This can be particularly insidious, because rates over 1% can result in large fines from Visa or Mastercard in the short term, and lost merchant accounts in the long term.
Different Anti-Fraud Strategies for Different Delivery Methods
Fraudulent orders for physically delivered products incur additional costs associated with the loss of the product and the price of shipping, along with the somewhat higher tendency towards “friendly fraud” (customers claiming the product never arrived in the mail).
This leads to the next important point: creating an anti-fraud strategy to minimize cost and maximize revenue depends on the type of product you sell. Products delivered electronically tend to have different fraud than products delivered physically. Read the rest of this entry »
Filed under Anti-Fraud Tactics, e-commerce Fraud, False Positives, Fraud Prevention
