Today's risk situation
Noncompliant Merchants
As e-commerce grows, so do the number of e-commerce merchants around the world. More and more products or services not previously thought of are now being sold on the Internet. The downside is an alarmingly increasing number of ethically questionable web sites, selling either illegal goods or other services that a respectable acquirer or iPSP does not want to get associated with. Processing transactions from such a website can seriously damage the acquirer’s reputation and also give fines from card associations if illegal content appears on the merchants web sites.
Globally increase in online fraud
The fraud trend among e-commerce sites continues to steadily increase. Electronic payment transactions have surged during the last few years, and so has the incidence of debit and credit card fraud. Criminals devise ingenious and often innovative means to identify and capitalise upon weaknesses in the system.
Faced with enormous increases in counterfeit and card-not-present fraud, as well as an increased number in stolen cards, 3D secure is no longer a good enough protection and CVV codes don't meet the security demands of today's market - companies recognize the need to employ more effective fraud detection solutions. In Europe from 2004 till 2006, the dollar amount lost to fraud has doubled to a staggering $35 million per quarter.
