The Fraud Practice Releases White Paper on Behavioral Monitoring and CNP Fraud Detection

Sarasota, FL, February 13, 2014 / By: The Fraud Practice LLC


Identifying who sits behind the keyboard is a daunting challenge for e-commerce merchants. Behavioral monitoring analyzes user habits and can help organizations balance fraud protection with the risk of offending good customers.


David Montague, founder and president of The Fraud Practice says, “Any system is only as strong as its weakest link, and in many cases, that is the consumer.” Fraudsters breaking into databases pose a problem, but customers also put themselves at risk by using easy-to-guess passwords, reusing usernames and passwords across multiple logins, as well as falling victims to malware and phishing attacks. Monitoring user behavior in your online and mobile channels can help companies prevent account takeover, identify high-risk users while minimizing the probability of insulting, or turning away a good customer due to fraud concerns. To help companies better understand the methods for behavior monitoring The Fraud Practice has released a free white paper entitled “Differentiating Methods for Making use of Behavioral Monitoring in CNP Fraud Detection”.


Mr. Montague also points out, “There can be a fine line between the behavior a fraudster displays and that of an organization’s best customers. Traditional velocity checks might stop these transactions, but behavioral monitoring can identify when these are high value customers versus fraud attempts.” Behavioral monitoring involves sophisticated analysis, working behind the scenes without disrupting or changing the user experience, and it is a good tool that can help convert good orders while still catching fraud.


There isn’t just one technique for analyzing customers’ behavior online, there are actually three discrete techniques companies need to consider, which include analyzing single session activity, cross-session activity, and activity relative to cross-site standard behavior. Mr. Montague emphasizes that each method has different strengths and weaknesses, and a system that helps one organization track purchase behavior might not be the best for another business that needs to protect itself against automated attacks. The problems with e-commerce fraud are not going away, and whether information is stolen from an organization’s computer system or given away by consumers answering an official-looking survey, businesses are responsible for keeping unauthorized users out. While no single fraud-protection tool can provide complete protection, a combination of techniques go a long way towards keeping information safe and secure, and behavioral monitoring is definitely a technique worth investigating.


In order to better understand the potential efficiency and protection behavioral monitoring offers, The Fraud Practice prepared a white paper that discusses and differentiates between the three different methods for performing behavioral analytics. The white paper, "Differentiating Methods for Making use of Behavioral Monitoring in CNP Fraud Detection” can be requested from our website or by calling us directly.

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