Fraud detection & prevention in the e-commerce industry
1 October 2021 | Reading Time: < 1minute | Share:
The year 2020 has particularly affected the entire field of e-commerce. The pandemic caused a significant increase in the frequency of online purchases. Consequently, the number of virtual payments and related fraud and scam attempts also increased.
Today’s online stores must be on their guard like never before and reach for increasingly innovative fraud detection & prevention solutions.
Smart payment authorization
One of our clients, a company specializing in building fraud detection and prevention solutions that had already reviewed hundreds of millions of transactions and approved billions of dollars in revenue across all industries, approached us with a custom project.
It aimed to create a module that supports the authorization process of payment methods in Magento 2 (version 2.3.4). When authorizing payments through the Riskified API, the module performs actions depending on the authorization result.
There are three possible scenarios:
trusted – agreeing to make the payment without additional verification,
not trusted – blocking the payment,
fraud attempt – inclusion of a PSD2 widget (provided in selected payment methods).
Through the administration panel, you can enable or disable the module, as well as provide authorization keys.
As part of this cooperation, we created a solution that fully meets the needs of the client, ensuring secure payments and full compliance with all the requirements of the European Union’s PSD2 regulation.
By reducing the number of e-payment related fraud incidents, customers reduce the losses generated by this field and can focus on other important parts of their business. Using this type of solution is one of the best ways to start making a profit without losses.