One of the major worries of online businesses is how to detect credit card fraud. The thieves and fraudsters have proven to be some really smart people who keep inventing new and innovative methods to get around existing security measures. In such a scenario the only option left with online businesses and ecommerce merchants is to stay updated and employ the most advanced credit card fraud detection system which is up to date, has efficient security measures and employs most effective techniques to fight fraud.
There are many such systems available in the markets which claim to detect credit card fraud in a fool proof manner. These systems are based on different techniques and methodologies which are designed to identify the indicators pointing towards a credit card fraud alert. Ecommerce business has been growing exponentially and credit cards are the most convenient and hence the most popular mode of payment used for online transactions. It is vital that any business while selecting a system to defend them against credit card fraud check the suitability of the system to their particular business and customer base.
One of the ways of detecting credit card fraud is to obtain a fraud score from a service provider. In this technique the security service provider captures the customer details and some additional technical data via a secure connection, evaluates the information based on the parameters designed by it to detect fraud and reverts to the merchant’s ecommerce system with a fraud score. Based on the fraud score, the customer may allow or deny the transaction or initiate a manual review to authenticate the order.
Another option to detect or suspect credit card fraud is by using a XML based solution that delivers real time data of the customer over the internet. Such methods employ web service screens and IP addresses to pinpoint the exact geographical location of the customer and their distance from the delivery city. This information can then be analyzed and used for detecting credit card fraud. Device finger printing is one more commonly employed technique which can be used on its own or coupled with other methods of fraud detection in the risk evaluation. In this process the service provider collects and maintains the comprehensive data of fixed and mobile devices which is then analyzed in real time to identify customer behavior associated with the device. This information is helpful in identifying a transaction coming from an anonymous, proxy or a high risk IP address.
However, the problem of how to track credit card fraud is best solved by using an up-to-date BIN database of a reputed company. One such company is which stores a large amount of data taken from banks, e-businesses and many other contributors. This data is regularly updated and provides an online merchant with the most comprehensive feedback on the customer history as well as past transaction pattern of the card. The BIN system works for everybody and is arguably the best credit card fraud detection system.