Kount solutions from Equifax are designed to detect and prevent fraud for ecommerce, m-commerce, and card-not-present transactions. Through this partnership, Kount technology will be made available to NMI’s customer base on top of the company’s proprietary solution, NMI Advanced Fraud Prevention, which sets extensive filters to detect suspicious transactions before they are approved.
Layering Kount technology on top of the NMI Fraud Prevention platform is designed to provide independent software vendors (ISVs), independent sales organisations (ISOs), and merchants with a greater ability to detect and mitigate fraud through the Kount real-time risk analysis and fraud assessment capabilities. This will also be the first third-party solution available in NMI’s App Marketplace and further expands the company’s ability to support full commerce enablement.
Kount’s AI-driven platform detects and prevents fraud in common online targets such as gift cards, cross-border selling, online charity donations, and account takeover within industries such as travel, jewelry, luxury goods, apparel, electronics, health, and wellness. By leveraging artificial intelligence (AI) and two types of machine learning, Kount solutions work to provide a real-time risk and safety score so that merchants can automatically approve, decline, or challenge transactions.
Payment fraud is on the rise, considering merchant losses to online payment fraud are expected to exceed USD 206 billion between 2021 and 2025.
Online payment fraud includes losses across the sales of digital goods, physical goods, money transfer transactions and banking, as well as purchases like airline ticketing. Fraudster attacks can include phishing, business email compromises, and socially engineered fraud.
The same study has found that the total cost of ecommerce fraud to merchants will exceed USD 48 billion globally in 2023, from just over USD 41 billion in 2022. It predicted that this growth will be accelerated by the increasing use of alternative payment methods, such as digital wallets and Buy Now, Pay Later (BNPL), which are creating new fraud risks.
Ecommerce fraud will continue to evolve. However, the technology that prevents it advances as well. Ecommerce businesses need to know the red flags that indicate fraud so that they can reduce fraudulent activity.
As online channels continue their growth, there’s a parallel growth in fraud. A 2022 payments fraud study found that merchants spend an average of 10% of ecommerce revenue managing fraud. Payment fraud management is critical to prevent losses, protect the organisation, and ensure operations are smooth, secure, and scalable.
One of the most challenging aspects of fighting payment fraud is the complexity of interconnected networks and all the moving parts that need consideration and coordination. Every step of the transaction chain is a potential attack vector or a friction point for a seamless customer journey. All require effective integration from front-end interfaces, such as websites and apps, to back-end services, such as ecommerce servers and payment systems. Adding in services such as identity verification, authentication, loyalty programs, and transaction monitoring makes the technology stack considerations immense.
However, understanding your customers, payment flows, and security will provide fundamental tools and insight to create a robust risk-mitigation program.
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