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Managing Fraud Effectively in the Canadian Market Similar to the U.S. market, a multi-layered, full-process approach to fraud management is recommended as a best practice for the Canadian market. This approach advocates that you adopt an automated screening and validation stage, including:

  • 1.

    Multiple detectors and a rules engine to interpret the results;

  • 2.

    A case-management system that supports queuing cases based on product cate- gory, shipping method or other attribute and consolidates order and validation data for efficient review and validation by manual reviewers; and

  • 3.

    An adequate set of analytics that permits an understanding of critical metrics (e.g., fraud rate, rejected orders, rule results, etc.) throughout the process.

Figure 10.2

The area deserving the most attention when transitioning between the U.S. market and the Canadian market is Stage 1 – the application of detectors/validation tests and the interpretation of those results by your rules system. Before discussing the granular differences, it is important to understand that the best practice is to deploy a detection

strategy based on four dimensions of detection. Studies have shown that merchants who derive the best results from their fraud management processes (lowest fraud, lowest review rate, lowest rejection rates) are twice as likely to deploy a four- dimensional detection approach.

Figure 10.3

By using these four dimensions, merchants are better able to uncover the abnormality in the fraud-

ster’s identity—the fraudster may be able to mask one or more attributes of an identity, but likely not all. The following is a brief summary of detectors typically utilized within these categories.

Visa e-commerce cross-border handbook for U.S. retailers

Copyright 2010 Visa. All rights reserved.


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