Commerce Glossary

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What is Fraud Management?

fraud man - age - ment
Is the process of identifying and preventing any potential fraudulent actions toward a business or its customers. This consists of reviewing transaction activities, users, accounts, and entities in order to avoid fraudulent behavior.

eCommerce businesses are exposed to payment fraud that occurs when online transactions are made illegally, with stolen credit cards or false requests for a refund. Providers that offer fraud protection – either payments providers or specialized fraud prevention software companies – avoid fraudulent behavior by staying up to date with the latest fraud trends, using address verification service (AVS), setting up anti-fraud tools, and analyzing every transaction either automatically or with a combination of auto and manual order screening. Detecting fraud early, minimizes revenue loss and improves customer satisfaction and retention.

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