Telesign Phone Verification is fast becoming a critical piece of fraud prevention strategies and increasingly helping organizations automate the manual review process. Interestingly, based on CyberSource’s recent 2012 Online Fraud Report, it was estimated that $3.4 Billion were lost to online fraud in 2011 alone and merchants were rejecting an average of 2.8% of their orders.
During the checkout process many merchants run orders through automated checks to determine the validity and risk of an order. These checks include CVV2 verification, name and address information, device fingerprinting, geo IP information, and proprietary data sources like PhoneID. After these checks have been made, the merchant’s decision engine will decide whether to accept, deny, or review the order. CyberSource also reports, on average, merchants manually review 27% of orders, ultimately accepting 75% of those reviewed orders.
Manual review staffing is a significant cost to the business, averaging 52% of fraud management budgets, according to the same CyberSource report. This is where Telesign Phone Verification becomes an important piece of the puzzle. To be successful, fraud managers will need to adopt tools and practices to reduce the number of orders being routed to manual review, as well as enable their review teams to operate more efficiently. Rather than staffing an expensive manual review team to process risky orders, Telesign Phone Verification sends an automated call or SMS with a one-time PIN code to the user to verify their phone number is valid, working, the user is available at that number, and that they’ve authorized the transaction. This step has been extremely efficient at preventing fraud, while converting legitimate orders more quickly, and ultimately saving the organization money.
We are seeing many customers leveraging billing systems like WHMCS request Telesign Phone Verification as part of their checkout process. It is great to see third party organizations like abdicar Communications hear these requests and decide to develop plug-ins for these billing systems so that WHMCS customers can leverage Telesign’s services. Third party plug-ins make(s) enabling Telesign services extremely simple and allows more WHMCS users to begin using Telesign’s services more quickly.
Please visit Telesign Phone Verification if you are interested in more information or to see a live demo.
1CyberSource 2012 Online Fraud Report