Ravi’s Blog

So much for the much touted “amazon customer service”. Chuck’s experience here is a good example of what happens when credit card fraud detection tools foul up.

Internet made a lot of things easier to accomplish by eliminating friction. Here’s one area which has received a great boost because of internet. Credit Card FRAUD. Unfortunately, when presented with a credit card number, name/address, and CVV - all of which match up - there’s limited tools available for a business to ensure that there is no fraud.

First you’d have to wonder how these fraudsters get such extensive information. Something has to be said for all businesses following the right processes to make things secure.

But the root of these problems is different. What i would say is that the credit verification systems put in place need to be better. In their haste to participate in the internet boom, and opening credit card verification via the internet, VISA/Mastercard and other bigwigs seemed to have skipped some important steps. These decisions are now coming back to haunt internet transactions and cause businesses to spend huge amounts of dollars being defrauded or avoiding fraud.

That’s a big “charge” against these companies, however, here’s what i would point to. In the 5-6 years since basic credit card verification on the internet has been implemented what advances were made? There’s all this talk bout smart chips, card readers built into computers etc. However, they did not put enough muscle behind any initiative to make it successful.

In the end, this is something that’s going to come back to haunt the big networks.. Gave up security for ease of adoption.

This entry was posted on Sunday, December 28th, 2003 at 5:44 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.