Sebbe Jones, 2Checkout’s Fraud Czar, has spent a majority of his professional career fighting online fraud. He is one of 2Checkout’s most valued employees and is regularly called upon by the industry to speak on the subject. The following two-part blog, which will conclude tomorrow, is Sebbe’s narrative on 2Checkout’s fraud fighting history, the lessons learned along the way and a brief look at his department’s methodology… that is, the part he is allowed to share with you. This rare glimpse into “Sebbe’s World” will provide you the reasons why 2CO’s fraud scrubbing service is so highly valued by its customers who receive the service as a value-add, and why no e-commerce business should attempt to stand alone in the war against online fraud.

Allow me a moment to introduce myself and talk about my history at 2Checkout. My name is Sebbe Jones. I am the manager of Fraud Detection and Prevention at 2Checkout and manage a staff of analysts and investigators.

We are very good at what we do, but don’t take my word for it. Let our record and departmental process speak for itself.

Today and tomorrow, I will post a two-part blog describing 2Checkout’s daily fraud mitigation efforts - what goes into our daily work, a little history behind the development and rejuvenation of our department, and ultimately explain why you shouldn’t try tackling fraud on your own.

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Do you have big celebratory plans for International Fraud Awareness Week? What do you mean — NO? Don’t worry, we’ve got you covered!

As you know, 2Checkout takes e-commerce fraud management very seriously and accurate and timely protection of your orders has always been a guarantee. But this week, to celebrate Fraud Week, we made our net even stronger.

2Checkout joined a global fraud-fighting community, powered by Ethoca – a leader in collaborative fraud management - to extend our fraud management services beyond our current system. Now, we have access to shared fraud data from a pool of online retailers designed to help augment our efforts in spotting and stopping fraudulent online behavior more efficiently, and guaranteeing less chargebacks related to fraud.

In partnership with our existing fraud detection technology, Ethoca will be an added layer of protection. The beauty of the system is that it not only red flags and records fraudulent findings from other retail sources but also helps identify honest customers as well, so they can receive a virtual “speed pass” through the clearance process and valuable departmental resources can remain focused on stopping criminal activity.

According to Sebbe Jones, Manager of Fraud Protection for 2Checkout, “Fraud protection isn’t just about stopping the bad guys. Providing a seamless and safe shopping experience for the legitimate consumer is equally, if not more important. Ethoca is yet another layer of security for us to ensure a safe shopping experience.”

We are proud to be an integral part of Ethoca’s network and are confident the model will help stamp out fraudulent transactions within the retail industry, resulting in substantial savings for customers and retailers selling online.

When legitimate e-commerce prospers everyday, there is still the growing threat of illegitimate business. Unfortunately, there is no way we can stop these people from attaining and using others information. However, we can prevent our vendors from associating with illegitimate buyers. A business that sells tangible goods will experience less fraud than a business that sells intangible goods. It is quite easy to generate great loss by sending a service to a free and untraceable email address opposed to sending a service to a physical address. Fraud will occur in every type of business, some more than others. We find that the most sought after services that accumulate the most losses are hosting, e-books, and templates.

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In the Card Not Present, e-commerce environment that 2Checkout and its suppliers actively sell in, a decision had to be made between real time or time delayed fraud protection. With the 60,000+ suppliers currently selling hundreds of thousands of different products and services, this is a topic debated regularly.

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• Be sure that customers are completely familiar with your delivery process. If you are shipping expensive items, use a package service that provides proof of delivery. There will always be some customers out there who falsely claim that a package was not received (and occasionally there will be packages that truly are lost or stolen). Since you bear the responsibility for those losses, you should take care not to put large amounts of money at risk.
• Respond to 2Checkout.com’s requests for information promptly.
• Make customers aware that 2Checkout.com is your authorized reseller. A link to our ticket system or a list of the phone number for our customer care center can be posted on your website.
• Thoroughly describe your offering, show photos, and disclose any important limitations. Ensuring the customer’s expectations match what arrives in the mail will save you and the customer time, money and aggravation.
• Respond to customer requests for assistance promptly. If an issue can not be resolved to the customer’s satisfaction offer them a partial or full refund.
• Manually review all incoming orders for fraud. If you have any suspicions about an order, please contact our Fraud Department at fraud@2co.com for assistance.
• To ensure that they wanted to place multiple orders, contact all customers placing more than one order within a short amount of time.
• If you are selling a product/service that entails multiple billings, make sure that the customer is fully aware of the future billings and your cancellation policy.