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Education

summer back-to-school season. safer experience. The safer customers feel the more likely they will increase
Interestingly, however, fraud rates do their activity, both mobile and e-commerce. Reaching out directly to the
not rise notably on heavy shopping customer via SMS or phone call will also give users a good feeling about
days like Black Friday, but do rise your service.
on Christmas when many people
aren't shopping. Stripe also noted Nicholas Cucci is the co-founder and chief operating officer of Fluid Pay LLC and former director
that fraud rates are much lower on of marketing for NMI. Cucci is also a graduate of Benedictine University and a member of the
recurring transactions that involve
a subscription service or extended Advisory Board and Anti-Fraud Technology Committee for the Association of Certified Fraud
relationship. Examiners. Fluid Pay is a true cloud-based Level 1 PCI payment gateway processing transactions
worldwide. Contact him at nick@fluidpay.com or 630-526-8670.
Another noteworthy fraud trend is
that fraud rates are increasing during
"quiet times." Traffic peaks during
workday hours and plummets during
nocturnal hours, while fraud peaks
during the lull periods of web traffic.
This was not the case five years ago.
Fraud-prevention tips

Fraudsters typically try to hit
businesses that do not need to
deliver a product or service linked
to the buyer. Typically, on-demand
services are the ones most targeted.
These behaviors will only continue
to evolve as we combat fraud, the
type of fraud will constantly pivot
to adapt to changes. If you're a
merchant or ISO battling fraud here's
my advice:

1. Distinguish between ecom-
merce traffic and mobile traffic.
Even when this is split 50/50, it's
better to monitor this to see what's
normal for your area, and when a
spike occurs, you can catch it be-
fore a problem develops. This will
also help you figure out the origin
of fraud should it occur.

2. Follow the Payment Card In-
dustry Data Security Standard,
particularly Level 1. Level 1 is the
highest protection. Certification
may not be necessary, depending
on volume, but as long as you fol-
low the standard, this will be a
major deterrence to any fraud at-
tempt to your system.

3. Track behaviors and set velocity
controls. Variances in traffic need
to be monitored and
understood. A significant number
of current mobile retailers imple-
ment seamless secure checkout
solutions to their customers for a

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