Fraud is an ever-growing problem, continuing to threaten businesses as the attacks develop and become more sophisticated. A recent study found that the total cost of ecommerce fraud to merchants will exceed $48 billion USD globally in 2023* and Visa has recently seen an increase in fraudulent activity in the form of enumeration (BIN) attacks. In response to this, Visa has recommended adopting a layered approach to tackle fraud, using as many fraud protection methods as you can.
Along with passing on Visa’s advice, Checkout.com would also like to remind you of best practices to help prevent these attacks and other types of fraud across all card schemes.
An enumeration attack, also known as a BIN attack or brute force attack, is when a fraudster systematically submits Card Not Present (CNP) purchases through an ecommerce website targeting a specific account range or issuer Bank Identification Number (BIN). Software is used to run a script of BIN numbers, usually at high velocity and often with a low value. These transactions are often in large bursts within a short period of time, gathering information on which accounts are real.
The fraudster uses the authentication response to identify legitimate and active account numbers, leading to other higher value fraudulent purchase attempts using the payment account information they have gathered.
3D Secure Authentication
Checkout.com provides your customers with the ability to verify that they are the card owner using our flexible 3D Secure Authentication product, helping you to reduce fraud and chargebacks.
Our Authentication product works across all platforms and acquirers and gives you the option to ask your customers to complete an authenticated purchase flow.
Since launch, Checkout.com has shown best-in-class 3DS performance in benchmarking by Arcot, a market leading ACS1, and we continue to outperform our competitors in this space.
We are also continuing to enhance this tool with support for the latest protocol - 3D Secure 2.3 (where supported by issuers), new 3RI, decoupled authentication flows, and improved automation to further increase approval rates will all be coming soon.
Fraud Detection
Our Fraud Detection tool lets you control the type of payments you accept and reduce the risk of fraud. This includes pre-configured setup and block list, pre-set fraud rules, and Machine Learning (ML) with fixed thresholds to decline, approve, or send transactions for 3D Secure authentication.
The tool lets you make minor edits to some pre-set rules and add further rules from a pre-set list. You can test these changes before implementation using our shadow-mode testing feature and access a full suite of analytics and reports within the tool.
We are regularly releasing new Fraud Detection features and making improvements to suit the developing fraud landscape. Most recently we have added Device ID velocities, a data quality widget, decline rules performance and back testing.
Speak to your Checkout.com support team if you’re interested in learning more about our Pro solution – designed for fraud teams that want more control over their risk setup. Pro unlocks additional functionality to give you more advanced risk tools and the ability to fully customize your strategy:
If you would like any further information about either of these products or have any other questions, please contact your Checkout.com support team who will be happy to help.