41st Parameter Inc., the provider of fraud detection and prevention technology, announced a three-year extension of services from 2Checkout.com (2CO), provider of turnkey e-commerce solutions and payment processing for about 40,000 businesses around the world.
2Checkout will continue using FraudNet, the fraud prevention software for the e-commerce industry, through 2012 to help its investigative team identify legitimate versus fraudulent transactions.
Since partnering with 41st Parameter in 2005, 2CO attributes savings of about $1 million per year in reduced chargebacks alone, while overall chargeback rates have fallen by two-thirds. Utilising more than 400 rules with the device identification technology, FraudNet provides 2CO’s investigators with a dashboard of transactions scored for risk, limiting manual review to orders most likely fraudulent.
"E-commerce retailers and payment processors need innovative, flexible and adaptable solutions to fight back against current and emerging fraud threats," said founder and chief innovation officer Ori Eisen of 41st Parameter. "We’re able to provide scalable solutions that limit fraudulent activity for 2CO merchants while improving the overall experience for both merchant and customer. 41st Parameter is looking forward to continuing to help 2CO in the fight against fraud and enabling further growth of the company."
"FraudNet has allowed our company to transact globally without increasing our exposure to risk; servicing many countries deemed too risky by other processors for high instances of card-not-present fraud," said Kristin Dach, CFO and COO of 2CO. "This extension allows us to continue providing fraud prevention services and cost savings to a diversified variety of small and mid-sized merchants, without expanding our fraud investigation team."
2CO recently upgraded to 41st Parameter’s FraudNet 3.0; features include:
Device ID – Integrated device intelligence technology for covert, tagless recognition of any internet connected device transacting with 41st Parameter protected sites.
Dynamic Queue – Prioritised review for orders requiring immediate investigator attention, highlighting potentially fraudulent transactions executing in the short-term, such as suspect overnight shipments.
Automated Analysis – Consolidated dashboard for displaying and analysing multiple fraud detection components (Device ID, risk score, AVS, CVV2, IP geolocation, system data, language setting, risk audit trail, order transaction details and more) for quicker investigator review and decision making.
Enhanced Custom Link Analysis – Patented analytical tools especially effective for fraud ring detection – DataSpider™ links seemingly unrelated orders with common data elements to identify fraud. SketchMatch™ link analysis identifies transactions placed by the same fraudulent device, without relying on user-entered data.
Bulk Action – Empowered case management for rapid identification and processing of group activities, such as mass approval or rejection of resolved transactions.