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Canadian Market: Unique Factors and Conditions

  • Neural Net Risk Detection Model/Risk Score: Commercial models that utilize statis- tical modeling to assess purchase patterns and behaviors to deliver a risk score.

  • Global Purchase Velocity : Measures the frequency of purchase activity across multiple merchants.

4. Purchase Device Tracing

This category of detectors assesses whether the attributes of the purchasing device are consistent with that of a “good” or “fraudulent” purchaser, including the following:

  • Device Fingerprinting & Profiling: Derives a “digital fingerprint” of the device used for order placement. This fingerprint can then be used in conjunction with other order attributes to detect abnormalities (same device, different identities, etc.). Some technologies can also determine the nature of activity arising from that device, such as firewall scanning, SPAM distribution, etc., all of which would be consistent with botnet behavior and thus carry a higher suspicion of fraud.

  • IP Geolocation: Assesses the consistency between the geographic location of the IP address and address/billing information provided with the order. This includes the ability to detect anonymizers.

While many of these detectors can be applied similarly for the U.S. and Canadian markets, some must be interpreted differently, or applied with more or less weight. The following discusses notable differences in application.

Tuning your practices for the Canadian market

Up to now, we have been discussing best practices that more or less hold true in many places around the world – further proof that fraud knows no borders. Let us now look at some factors and conditions unique to Canada, that influence how you apply and tune these practices. First, two detectors that deserve your attention.

  • Delivery Address Verification: The Canadian postal code system offers even greater reliability when testing for address consistency (9-digit number/letter code). If postal code referencing is not among your current tests, you should apply this element as a part of your screening profile when assessing Canadian orders.

CyberSource’s “Online Fraud Report” indicates 78% of merchants in the U.S. and Canada employ a delivery address verification check for inbound orders to confirm the deliverability of the address provided. The check can also be used effectively in conjunction with IP Geolocation tests to validate purchaser device and address location consistency.

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

Copyright 2010 Visa. All rights reserved.


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