Five reasons why adaptive fraud prevention should be at the heart of digital transformation
In the IDC 2020 PayPal Enterprise Payments Survey, "preventing fraud and managing risk" was cited as the top challenge facing online sellers.ii As merchants continue to digitally super-charge their business, they must do so in a way that manages fraud and supports regulatory compliance without impacting customer loyalty and friction or ramping up operational costs. For this, they need adaptive fraud prevention powered by machine learning.
Here are five reasons why:
- Legacy tooling can't keep pace with sophisticated fraudsters
- Machine learning offers a better way forward
- An adaptive approach can future-proof risk management
- It can save costs and maximize revenue
- Reduced friction and false declines mean a better customer experience
Our 2-Sided Network of over 360 million active consumers and more than 28 million merchants worldwide provides a rich source of data. This data is fed into our machine learning models for more accurate, adaptive, and real-time fraud detection.
PayPal has four risk offerings for merchants:
Chargeback Protection: PayPal will refund the disputed amount and any associated fees (up to a predetermined limit) for any automatically approved eligible transaction results in a chargeback.
Fraud Protection: Fraud Protection is an out-of-the-box toolkit built into the PayPal Commerce Platform and Braintree, designed to help provide merchants with more visibility and control over the transaction decisioning process.
Fraud Protection Advanced: Built into Braintree, Fraud Protection Advanced helps enable a merchant's fraud team(s) identify and investigate suspicious transactions, analyze patterns, and uncover key insights to mitigate fraud losses.
Risk APIs: Available to extra-large eCommerce merchants, merchants can easily integrate Risk APIs to help guard against several fraud use cases, such as signup, login, and payment fraud.
iiDC Technology Spotlight, sponsored by PayPal March 2021 A Guide to Driving Digital Transformation with Adaptive Risk Management
iiiPonemon Institute (February 2021) The State of Fraud, https://www.paypal.com/ca/brc/article/enterprise-solutions-state-of-fraud-report