Mobile Phone Tech and Merchant Tech Team Up to Fight Fraud

Apr 09, 2015

Online fraud has become an epidemic in the United States. But now, merchants have a new ally in combating this menace. Smart phones have evolved to the point where they can be formidable allies to exhausted e-commerce merchants. Mobile technology can be used to verify the identity and location of online shoppers.

Oftentimes, online fraud occurs when criminals manipulate their location data to make it appear they are a particular victim and live in the victim’s location. Now services offered by companies like Zumigo Corp., can trump criminal efforts by finding the real consumer’s information and verifying their identity and credit card credentials. Zumigo Corp. uses data from the consumer’s mobile carrier along with information from a credit-reporting agency to help verify consumer identities. This enables an address check to see if the card user’s details match mobile phone ownership details. Geo-location pinpoints the smart phone’s location relative to the computer the person is using to shop. Naturally, if the smart phone and computer are miles apart, the system will flag the transaction as suspicious.

Vendor Whitepages provides a similar service called “Speed to Clear.” This company’s partners include several mobile carriers and the U.S. Postal Service. The service uses data records to make a linked record used to verify the identity of consumers. Once the service goes international, it will mostly rely on email addresses, mobile-phone data, and social media for verification checks.

Mobile and merchant professionals believe that teamwork can solve the current fraud crisis in America. Chief Operating Officer of Chargebacks911, Monica Eaton-Cardone, believes that collaboration gives merchants the opportunity to look at the entire equation from the time of purchase to purchase disputes. A look at the bigger picture will give anti-fraud professionals access to more information and help them develop better ways to prevent fraud, and reduce profit draining chargebacks.

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