by:Nicole Reyes
Tokenizationwill make a significant dentin the country’s rising card-not-present (CNP) fraud problem. Nearly everyone is in agreement on that. Yet, the solution will take some time as all parties come online with their tokenization services. In the meantime, there are several things card issuers can do to limit CNP fraud losses.
Queue 3D Secure Transactions
The most important change an issuer can make is to hone its fraud-detection strategies to identify and prioritize accounts where a transaction has been declined by a 3D Secure module.
That’s because merchants participating in these programs have chargeback rights. These accounts should be queued for review by a human fraud analyst.
Layer Protections
Card issuers may want to take their fraud-prevention measures a bit further by writing strategies that analyze other risky attributes, such as dollar amount, region or risk scores. In the event the 3D Secure validation for a fraudulent transaction is authenticated, allowing a fraudster or account takeover artist to move forward with the transaction, those strategies would fill in behind 3D Secure, acting as a second layer of protection.
