Introduction

For online retailers, CNP fraud is a serious problem that will only get larger as the eCommerce market continues to grow. According to a recent report about the US market, fraudulent eCommerce transactions are projected to increase by 55% over the next 3 years, reaching approximately $18.5 billion by 2018.

Despite this harsh reality, senior management isn’t giving this issue the attention that it deserves, as executives fail to recognize the correlation between fraud management and the company’s overall growth and success. It is common practice for fraud prevention to be assigned as a secondary task to the customer service or payments teams, and the resources allocated to handle fraud are insufficient. On top of that, fraud managers’ success is measured in very narrow terms. The wrong incentives and performance metrics are being put on the people managing fraud – more focused on lowering chargeback than on protecting revenue.

In this guide, we set-out the value of fraud management operations as a whole, and why it is imperative that senior management play a larger role and assume responsibility for this issue.

This guide covers:

  1. Why  eCommerce CEOs need to pay attention to risk management
  2. How optimizing risk management operations can drive overall growth
  3. What key steps executives should take to optimize fraud operations