US online security specialist 41st Parameter has taken its
expertise south of the border, teaming up with Mexican airline and
travel industry payments processor Mercadotecnia Ideas y Tecnología
(MITec) to fight card not present (CNP) fraud. Results have been
impressive.
To tackle the CNP fraud scourge, MITec established its Payment
Solutions Division using 41st Parameter’s fraud detection and
transaction monitoring system, FraudNet. With seven investigators
the division’s services include a full fraud prevention management
offering.
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“Our team of investigators was pleased as they worked with
clients affected by serious fraud problems, and noticed that within
the very first days of utilising FraudNet, we were able to identify
a great amount of high-risk orders which are now rapidly
decreasing,” said Gabriel Gomez, MITec’s director of fraud
prevention.
Backing his enthusiasm, airline and travel services clients
using MITec’s service reported notable results, including a 46
percent reduction in chargebacks within the first six months of
implementation at one airline. Another airline reported a 60
percent fall in attempted fraudulent activity in its first month
using the service.
“For us, this confirms that fraudsters migrate from sites that
they perceive as protected, to others in which their fraud attempts
prosper,” added Gomez. “As soon as FraudNet began detecting
fraudulent orders and they were not processed, we found a drastic
reduction in fraudulent activity as the fraudsters seemingly moved
away from our customer sites.”
In addition, both airlines cited by MITec have lowered their CNP
review rates to well below industry standards. According to 41st
Parameter, airlines using FraudNet report an average CNP review
rate 80 percent below airline industry norms.
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By GlobalDataPrior to implementation of FraudNet, MITec relied on address
verification to analyse several hundred thousand CNP transactions
annually for potent fraud. MiTec processes some 1.4 million
transactions each month.
41st Parameter was founded just over four years ago by former
American Express worldwide fraud director Ori Eisen. Other airlines
using FraudNet include the world’s fifth largest airline,
Continental Airlines.
