The growth of eCommerce has brought convenience and variety to online shoppers across the world. But it’s also brought something else, something darker: fraud. Online fraud consumes 1.8% of all online revenue and represents one of the most significant threats to eCommerce businesses today. Mitigating these risks has given rise to an entire industry dedicated to preventing online fraud. As fraud trends emerge and evolve, so does this industry.
There’s a critical element to preventing fraud that might be overlooked among trending solutions that utilize artificial intelligence: manual order reviews. However, many eCommerce giants on the cutting edge of fraud prevention rely on manual reviews, as it adds a critical layer to preventing fraud, retaining customers, and avoiding loss. In short, it would be a mistake to discount manual reviews in your efforts to reduce fraud. Here’s why manual order reviews continue to be an essential part of fraud prevention and how you can successfully bring it to your business.
Manual Reviews Mitigate the Dangers of False Positives
Right now, the trend in battling fraud is artificial intelligence and automated detection. These processes analyze data a merchant generates during an online transaction and assesses the likelihood of a fraud attack in real-time. The excitement of modern-day AI programs fighting online fraud is hard to beat. Or at least, it would be if all companies had enough data needed to successfully run their automated tools, and of course the issues with false positives.
Automated solutions carry a higher risk of false positives, which are legitimate orders that are flagged as fraud due to timing, location, or any number of factors. An order marked incorrectly for fraud causes shoppers more than temporary frustration. eCommerce merchants risk alienating customers from a specific location, losing repeat business, and wrecking their customer experience. Here’s where manual order reviews come in to save the day. It cuts down on false positives and generates data that can be used to improve a company’s existing AI fraud-detection tools.
What Does the Process Look Like?
When orders are flagged for manual review, fraud specialists take over. Modern manual order reviews involve these specialists reviewing large batches of orders based on specific criteria. Orders can be validated by more than one specialist to make precise decisions. When needed, false positives can be resolved quickly. It is a sophisticated process that saves customer relationships while training AI tools to identify fraud better.
Challenges of In-House Manual Order Review Teams
We have established that manual order review should play a critical role in your fraud management efforts. So, what should that look like for an eCommerce merchant? Manual order reviews will likely be one of many solutions your company uses – the average eCommerce company uses 7-8 fraud mitigation solutions. Some merchants rely on an external partner for manual reviews, while others opt for an in-house team. However, the latter does present some unique challenges.
Keep in mind that your order review queue will never stop piling up. You’re operating 24/7/365 despite peak seasons, weekends, and holidays. If you have a team with limited capacity, that means longer handling times and worse customer service. You could be losing repeat business by trying to reduce fraud! Combating this by expanding the team could end up being costly and time-consuming, as all those people would require a lot of management attention.
You need a manual review process to enhance your fraud prevention system but doing it in house can be costly and could result in poor customer experiences. The fix to this is looking outward.
Prevent Fraud Through Manual Reviews with an External Partner
Cooperating with external partners with fraud prevention expertise allows you to overcome these manual review pain points. There’s no need to worry about addressing high-volume peaks, as your partner will handle the workload. Your business is focused on eCommerce sales; theirs is on preventing fraud and mitigating loss.
With a solution like Arvato’s Manual Order Review, you can quickly and efficiently reduce fraud losses without worrying about the logistics of an in-house team. Or, simply ease the burden of your high-volume peaks and outsource your after-hours, weekend, and holiday orders.
This solution enriches your existing data by leveraging additional databases for accurate and efficient detection, further driving down false positives. Your company can rely on them to maintain that 24/7/365 operation with ease, which means you can confidently scale your business while offering high-quality accuracy standards.
Manual order review plays a vital role in fraud prevention. Make it part of your efforts to reduce fraud loss and retain customers.