By 2003, according to International Data Corporation, almost half of all online commerce will take place outwith the US. Alongside, online payment card fraud continues to rise, with a cost to e-merchants last year estimated at $1 billion, predicted to rise to $60 billion by 2005.
A growing portion of this fraud will occur outside the US, due in part to the lack of international risk management standards and technology. To fight this growing threat from overseas, EFS International, is to implement eFalcon fraud detection into its EFS2000 Enterprise online software solution.
“Our research indicated that we could expect greater reliability, faster response time, and improved fraud detection abilities from eFalcon compared to our previous fraud detection system,” said Eugene Nizker, chief technical officer of Inphinity Interactive, sister company of EFS International. “Combined with the higher level of product support and improved customer service provided by HNC, the decision to switch to eFalcon was an easy one.”
“Fraud control attempts by payment card associations have focused mainly on fraud perpetrated within the US. eFalcon is able to detect fraudulent online transactions no matter where they’re committed. By making eFalcon available to its global customers, EFS is offering the world’s leading Internet fraud detection solution – one that sets the standard for international e-commerce risk management,” said Michael Chiappetta, group vice president of Risk Management Solutions, HNC.
eFalcon uses sophisticated neural networks, scores, and rules to distinguish between legitimate shoppers and fraudulent purchasers. It provides strategy management and customer service tools to help merchants save legitimate transactions that appear risky, as well as set policies for accepting and rejecting transactions. eFalcon is based on HNC’s Falcon payment card fraud detection technology, developed over a ten-year period and currently used to protect more than 300 million payment card accounts worldwide.
Established in 1995, Electronic Financial Services (EFS) International utilizes encoding and processing technologies that allow for complete security for financial transactions via the internet.
Inphinity Interactive is based in Vancouver, Canada, and is known for developing products and services which incorporate secure and scaleable software.
HNC’s suite of real-time decision platforms and predictive business solutions allows firms to automate new account decisioning, optimize marketing efforts, detect fraud, predict profitability, and manage the customer life cycle. Headquartered in San Diego, California, HNC Software provides predictive software solutions for the services industry, including financial, telecommunications, insurance and e-commerce.