August 12, 2021

    The Benefits to a Multi-Layered Fraud Solution


    With fraud attacks becoming more complex and organized in recent years, having a multi-layered approach to fraud prevention is essential for any merchant selling their products online.

    What's the best line of defense when it comes to preventing fraud for an eCommerce store?

    This seems to be a question that's on the mind of every online store owner, and it's a valid one. With card-not-present (CNP) fraud losses at an all-time high, it's essential for merchants to have a viable fraud prevention system in place that will protect against organized fraud attacks. 

    There's no doubt that the best line of defense against fraud is a multi-layered fraud prevention solution.

    In this article, we'll explore what a multi-layered fraud solution is, and how merchants can utilize them for optimal protection against fraudsters.

    What Are Multi-Layered Fraud Solutions?

    Cybercriminals are always developing new ways to defraud online businesses. Now, more than ever, merchants must use sophisticated tools to fight back. Multi-layered fraud solutions address the problem from a variety of different angles in order to provide the most effective fraud protection. 

    The goal of a multi-layered fraud prevention solution is to eliminate fraud risk without compromising the user experience of a website. This approach works by combining a variety of different solutions to offer a comprehensive barrier against fraud. 

    Multi-layered fraud solutions will offer flexible analytics, process controls, screening engines, and experiences. This hones the platform’s ability to correctly distinguish valid and fraudulent transactions. The intention is to optimize authentic customer sales and reduce false chargebacks.

    With fraud losses projected to reach $20 billion in 2021, it’s key to utilize fraud solutions designed to function at this level. Multi-layered solutions that watch activity worldwide have more consortium data that can be used for fraud analysis. This enables merchants to identify fraud patterns quicker and install new countermeasures to block similar fraud attacks in the future.

    How Can You Create a Multi-Layered Fraud Strategy?

    To start, you should identify which fraud detection technologies you'd like to implement as part of your strategy. Here are several options that we recommend including in your line of defense:

    1. 3D-Secure v2: Version 2 of 3D-Secure introduced significant enhancements to strong customer authentication (SCA) and addressed the customer experience issues that were associated with the previous version. 3DS requires customers to complete an additional verification step when completing a transaction. Most often, customers are directed to an authentication page that requires them to enter a code sent to their phone or email address.
    2. Biometric Authentication: Biometric authentication uses the shopper's biometric information (fingerprint, facial recognition, voice, etc) and compares it to the cardholder's to verify their identity. 
    3. Two-Factor Authentication: This type of authentication requires multiple forms of personal information in order to log in. With 2FA, users won't be able to log into a specific account until they input a code that was sent to their email address or phone. They also may be required to provide some form of biometric information (fingerprint, face ID, etc) to gain access to their account.
    4. Address Verification Service: Address verification service (AVS) is often provided by major payment processors and card providers to enable merchants to authenticate the legitimacy of a transaction. Customers will usually be prompted at checkout to enter their address, after which the address is compared to what the issuing bank has on file. AVS only applies to customers in the US, Canada, and United Kingdom.
    5. Geolocation: The geographic location that the order is being placed in will be checked against the location of the cardholder. 

    Vesta’s Approach to Fraud Prevention

    Vesta’s Fraud solutions provide multi-layered fraud protection. This gives merchants complete protection from online fraud threats. Here are a few of the benefits that come with using our multi-layered fraud solution:

    1. Reduce False Declines

    False declines or false positives create a tight rope that companies must walk. This describes legitimate credit card charges that are falsely tagged as risks. The system declines the sale and customers can’t get the product or service they want.

    Customers get angry and businesses lose revenue. Vesta’s platform prevents false declines and optimizes approval rates.

    2. Tailored Fraud Prevention by Industry

    Every business is unique. It’s vital to choose a fraud protection solution that meets your individual needs. Vesta’s multi-layered solutions train for varied physical and digital products and services. This gives your business the benefit of high-level industry experience.

    3. Scalable Fraud Prevention

    If your company is growing quickly and your fraud prevention system is fallen behind, a multi-layered solution may be the best option. Vesta's fraud prevention platform uses a variety of different customer authentication methods to ensure that only legitimate transactions are approved. Our proprietary fraud detection technology is designed to adapt to changing situations, so as your business grows, our solution will adapt to the changes in customer purchasing behavior. 

    It's Time to Implement a Multi-Layered Fraud Strategy

    Today eCommerce businesses must protect themselves from lost revenue due to fraud. Investing in a multi-layered fraud solution gives you the protection you need. This streamlines transactions, lowers risk, and increases revenue.

    Vesta secures over 1.1 billion digital transactions worldwide. Our portfolio includes companies in fintech, telecom, eCommerce, gift card, and payment service providers. Our solution will give you access to 25+ years of expertise and our zero fraud liability guarantee. Vesta’s ready to help you grow your business. Request a free demo today to learn about our powerful transaction guarantee platform.


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