COST-EFFECTIVE SOLUTIONS TO THE FRAUD PROBLEM

Fraud, and fraud-related chargebacks, can undermine the profitability of any business.  Left untreated, fraud can be a devastating problem. Before your business is affected by serious fraud problems, it’s critical that you identify all fraud-prevention options and find a cost-effective solution that is relevant to your needs.

As you analyze your options and build a solution, you need to be sure that you evaluate the true costs associated with fraud. These include:

• Cost of fraud-related chargebacks
• Cost of fraud-prevention activities, including all personnel- and service-related costs
• Cost of lost revenue due to valid orders that are flagged as fraudulent

At Litle & Co., we’ll help you evaluate all of your options to make sure that you use all of the free and inexpensive options to their fullest advantage before you consider expensive third-party solutions.

THREE KEYS TO SUCCESS

A good ROI-based fraud solution is based on:

1. Constantly monitoring and measuring.

Before you begin a fraud prevention program, you have to commit to measuring and monitoring. You have to test individual fraud indicators and determine their impact on fraud.

2. Using effective and inexpensive tools first.

The list of free and nearly-free tools is long. You need to fully evaluate the value of these tools before analyzing more expensive alternatives. From card association tools such as AVS and CVC, to negative and positive lists of consumers, to screening by product type, order size, shipping address or e-mail address—the options are numerous.

3. Evaluating all third-party options.

Third-party fraud prevention services range in cost and complexity. Visa and MasterCard have their own solutions, and there are dozens of other options. Before selecting a vendor, Litle & Co. will help you determine the exact product features and benefits that you need and help you determine which third-party solution is right for you.