Theme: Fraud Prevention
Issue 11, June 15, 1998    ISSN 1094-9001
You Bear All the Responsibility
Dr. Ralph F. Wilson, Editor Fraud and Chargebacks Challenge Online Merchants
by Dr. Ralph F. Wilson
E-Commerce Consultant
When online selling began, the press was concerned with credit card fraud, but they were worried about the shopper. The real online fraud today is against the seller. Some software merchants have experienced as much lost in fraud as they received revenue from sales.

This article explains what that "Authorization Code" really means -- and what it doesn't -- for the MOTO (Mail Order/Telephone Order) merchant. And the kind of fraud to watch out for. We think you'll agree this kind of information is well worth an annual subscription to Web Commerce Today. READ THE ARTICLE

What You Can Do About It
Low Cost Fraud Protection Methods
There are several simple things smaller merchants can do to reduce dramatically the occurence of credit card fraud against them. In this article we describe the simple programming you can do, as well as developing a check-before-you-ship strategy. If this article saves you from just one or two fraudulant sales, you'll have paid for your subscription to Web Commerce Today!    Read the Article.

Arm Yourself with Additional Resources
Research Fraud Prevention
Fraud Prevention section of the Electronic Commerce Research Room We've developed a new section in our Research Room which deals with Fraud Prevention. You can browse the articles, find programs and scripts, and learn the technical details about the 10-mod validation algothrim.

Sophisticated Screening
Evaluating Fraud With Artificial Intelligence
To reduce risk substantially, merchants can now subscribe to services which check, in about five seconds, various parts of their order against risk criteria and produce a risk score. The merchant can choose to accept all orders above a given risk score. Here are details from the experts at CyberSource, one of these services. Read the Article

E-COMMERCE BOOK

Designing Systems for Internet Commerce

Designing Systems for Internet Commerce
by G. Winfield Treese and Lawrence C. Stewart (Addison Wesley, May 1998)
This volume provides the most comprehensive overview of Internet commerce I've seen to date. It will be especially helpful to larger companies preparing to enter the Internet marketplace, along with consultants and development firms. Read the full review. Click here to purchase the book at a discount.
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