ADVANCED FRAUD SCORING

Benefit Summary With our latest advancements in fraud scoring, you now have the ability to score each order as it comes in from both credit cards and PayPal. This functionality gives you added protection from fraudulent activity. You can effectively identify and review orders to make sure both you and your customers are protected. Functionality Activation With no setup fee; you can take advantage of Advanced Fraud Scoring for a usage fee of only $0.10/transaction. For more information and to get started, please contact: Doug Norwood | Director, Client Development | dougn@shopvisible.com | 404-496-6926 (direct)

Fraud Techniques Becoming More Advanced Card-not-present fraud is becoming increasingly more prevalent. Traditional fraud screening tools only determine if a card is legitimate or if the user-entered account detail matches the information on record. In fact, fraudsters can obtain personal credit card information, pose as the legitimate cardholder, and bypass standard fraud checks. By enabling fraud scoring, we examine an online transaction from all the necessary view-points. Our tools are geared not only towards verifying the authenticity of the credit card details used for the purchase, but rather, identifying if the purchaser is the legitimate card holder. Through analysis, Advanced Fraud Scoring has been able to identify traits and patterns that are associated with fraudulent orders. By asking the right questions, Advanced Fraud Scoring can pass on the necessary information to detect fraudulent orders before the payment is processed. INTERNET FRAUD BY THE NUMBERS Over 38% of online fraud is commerce related. The average cost of fraud management is around 0.5% of revenues. The size of the average fraudulent order is 1.5 times that of a legitimate order. The average order flag rate for suspicion of fraud is 6%.
About 3/4th of these turned out to be legitimate.

THE VALUE OF ADVANCED FRAUD SCORING Currently FraudLogic provides solid scoring on a number of fronts including activity on the individual credit card, IP address and address matchups. With Advanced Fraud Scoring, youll activate a more robust measure of protection with: Scoring based on 50+ criteria Access to a database of hundreds of millions transactions and scores Monitoring of over 3.5 billion IP address

Key Features Include

IP Country Match IP Country Value IP in High Risk Country Distance b/t IP & billing location IP Region Value IP City Value IP Latitude/Longitude IP ISP/Organization Value

Anonymous Proxy Open Proxy Transparent Proxy Free Email High Risk Email High Risk user Name High Risk Password BIN Country Match

BIN Name Match BIN Phone Match Phone prefix location check High-risk shipping address City, state and zip code verification Fraud Score Explanation of Fraud Score Risk Score

Outputs from Scoring Include Field Format Description Geographical IP address location checking countryMatch Yes or No Whether country of IP address matches billing address country (mismatch = higher risk) countryCode two-letter ISOCountry Code of the IP address 3166 code highRiskCountry Yes or No Whether IP address or billing address country is in Egypt, Ghana, Indonesia, Lebanon, Macedonia, Morocco, Nigeria, Pakistan, Romania, Serbia and Montenegro, Ukraine, or Vietnam. distance rounded integer Distance from IP address to Billing Location in kilometers (large distance = higher risk) Proxy Detection anonymous Proxy Yes or No Whether IP address is anonymous (anonymous proxy = very high risk) proxy score decimal from 0Likelihood of IP Address being an open proxy 10 Email and Login Checks free email Yes or No Whether email is from free email provider (free email = higher risk) High Risk Email Yes or No Whether email is in database of high risk emails Issuing Bank BIN Number Checks binMatch Whether country of issuing bank based on BIN number matches billing Yes, No, address country* NotFound, or NA binCountry Country Code of the bank which issued the credit card based on BIN two-letter ISOnumber* 3166 code binName string Name of the bank which issued the credit card based on BIN number*. Available for approximately 96% of BIN numbers. binPhone string Customer service phone number listed on back of credit card*. Available for approximately 75% of BIN numbers. In some cases phone number returned may be outdated.

Advanced Fraud Logic Presentation ShopVisible Strategic Services | ShopVisible LLC. Copyright 2011.

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Field Format Description Address and Phone Number Checks Phone in Billing Yes, No, or Whether the customer phone number is in the billing zip code. A return Location NotFound value of Yes provides a positive indication that the phone number listed belongs to the cardholder. A return value of No indicates that the phone number may be in a different area, or may not be listed in our database. NotFound is returned when the phone number prefix cannot be found in our database at all. Currently we only support US Phone numbers. Known Mail Drop Yes, No, or NA Whether shipping address is in database of known mail drops City/Postal Match Yes or No Whether billing city and state match zipcode. Currently available for US addresses only, returns empty string outside the US. Shipping Yes or No Whether shipping city and state match zipcode. Currently available for US City/Postal Match addresses only, returns empty string outside the US. Risk Score explanation string A brief explanation of the score, detailing what factors contributed to it. riskScore decimal from 0 Representing the estimated probability that the order is fraud, based off of to 100 analysis of past transactions. Other Error Returns string Returns an error string with a warning message or a reason why the request failed. To enable Advanced Fraud Scoring, contact your Client Manager. To use it, go to the Commerce Tab > Orders > Fraud Logic > Set the minimum threshold (1) and save. Keep in mind, the threshold number is expressed as a percent of the overall probability of fraud. A fraud score of 20 represents a 20% likelihood the order is fraudulent. You can set, and adjust, your threshold to any level from 1 - 100. There are two additional flags to help merchants manage fraud when it matters most. Setting a minimum order value threshold (2) will provide scoring only on order of and over a value chosen by the merchant. Finally, weve included the ability to flag only international orders (3), where fraud is clearly higher than on domestic orders.

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Advanced Fraud Logic Presentation ShopVisible Strategic Services | ShopVisible LLC. Copyright 2011.

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To view results on a per-order basis, go to Orders > View and look at the order notes. All orders regardless of threshold will store the fraud scoring results within the order notes, which will help you to find the actual threshold you are interested in using.

Advanced Fraud Logic Presentation ShopVisible Strategic Services | ShopVisible LLC. Copyright 2011.

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