No one-size-fits-all solution for fraud management, especially post-EMV
PORTLAND, OR — January 11, 2017 — Vesta Corporation, a global leader in integrated risk and payments solutions, has released a new white paper, “The CFO’s Challenge: Fighting Fraud in the Digital Age.” The paper explores risks that CFOs must assess as fraud management and cybersecurity challenges reach new heights.
With today’s CEOs more readily seeking their CFOs’ strategic counsel, CFOs face new pressures in their efforts to preserve and expand revenue streams. Cybersecurity and other fraudulent threats—especially via online channels and card-not-present transactions—have spiked in the past 15 months since the EMV liability shift and are aggressively eating away revenue streams.
“While organizations race to expand their ecommerce and digital goods offerings to stay competitive, fraudsters are finding new ways to circumvent security measures,” explained Vesta Chief Operating Officer Tracy Metzger. “CFOs need to be mindful of the ways in which fraudsters’ tactics can undermine organizations’ financial stability and plans for growth.”
Online sales already represent more than 8.1 percent of all retail sales, yet organizations as a whole are losing 7.6 percent of their annual revenue, across all channels, to fraud. Ecommerce merchants dealing exclusively in digital goods are suffering the most, losing 8.6 percent of revenue on average to fraud and related costs. And these figures fail to quantify the impact of false-positive transactions, whereby fraud controls calibrated too tightly—in efforts to eliminate fraudulent transactions—block legitimate shopping activities. Customers who endure the inconvenience and embarrassment of having their purchases denied at check-out report diminished loyalty to the business they had been trying to patronize.
The white paper explores the following topics in detail:
- The true operational cost of fraud for merchants of all product mixes;
- The hidden impact of false positives on a company’s reputation and bottom line;
- Analysis of current investments in fraud prevention;
- Finding the right balance between different forms of fraud controls.
“CFOs interested in sustainable growth need to understand modern fraud threats and how to combat them,” added Metzger. “This white paper identifies common challenges and helps merchants identify a path to safety and scalability.”
About Vesta Corporation
Vesta Corporation is the global leader of revenue-generating payment solutions for enterprise partners in the telecommunications, digital goods, media, and financial sectors. The company’s patented fraud protection technology is proven to increase conversion and acceptance while eliminating fraudulent transactions and merchant liability. Vesta has been recognized as a leading innovator in payments technologies, holds multiple patents, and has won numerous awards as one of America’s fastest growing companies. Founded in 1995 and headquartered in Portland, OR, Vesta’s operations span the Americas, Europe and Asia.
Communications Strategy Group, on behalf of Vesta Corporation