4 Things We Can Learn About Fraud from the Euro Cup
If you caught this year’s Euro Cup final on television or live (lucky you!), you saw a real nail biter. With star forward Cristiano Ronaldo stuck in the dugout tending to a sore knee, Portugal nonetheless took home the 2016 Euro Cup championship from host nation France. The final match’s conclusion was a dramatic, unexpected turn of events in a month that was full of them.
We can learn a lot from this year’s tournament about perseverance in the face of adversity, but there were also some key lessons about preventing fraud both on and off the field. Here are a few important pointers you can draw from the events of the past weeks:
1. Defending against fraud without scoring an own goal
Credit card fraud and the limitations of the detection systems used by many major companies were serious concerns leading up to the tournament. UEFA was hot on the trail of websites selling fake tickets. The UK’s national fraud and cybercrime reporting center, ActionFraud, even went so far as to issue a warning about purchasing Euro Cup tickets on secondary markets.
Meanwhile, some sources have reported that many fans who successfully purchased tickets through UEFA’s lottery system then had the charges denied by their credit card companies. If you’ve ever jaunted off to another country for the weekend or an extended holiday, you probably know that just a few international purchases with your card can raise red flags.
So how can retailers make sure they don’t reject good orders and get a red card from their genuine customers?
To be effective, today’s fraud detection needs to be sophisticated and proactive instead of being hamstrung by generic, inflexible rules. This is where risk scoring powered by machine learning systems and big data can make a tremendous difference. With computational power, machine learning algorithms can process large amounts of data more effectively and define customer segments with greater granularity, giving retailers a better understanding of what their customers will and will not do. Fraud prevention measures should be in place to protect consumers’ dreams, like traveling to the Euro Cup finals, not to bring them disappointment like England’s national team does for its fans.
2. No threat is too small
If you love underdogs, then this year’s tournament was for you. Portugal’s win in the finals was just the latest in a series of upsets that we watched while perched at the edge of our seats. Italy scored an early victory against heavily favored Spain, and Iceland defeated England, making it to the quarterfinals. Even Wales, which had not fielded a team since 1950, got all the way to the semifinals.
As these events demonstrate, it’s never a good idea to underestimate your opponent. That’s especially true when you’re striving to keep fraud rates under control and avoid chargebacks. Fraudsters today have easy access to technology and are making more sophisticated attacks on vulnerable systems. Technology that can adapt to newer fraud patterns in real time is essential for rooting out those threats before they do serious damage.
3. Watch your back (of the net) when taking a risk
Betting is all about the thrill of taking a chance, but that doesn’t mean you want to expose your gambling business to higher risk. Today, people use multiple devices, including mobile devices, to track odds and place bets. While this is a convenient way to gamble on a pivotal match in the Euro Cup, it can also result in a financial loss if you don’t distinguish good customers from fraudulent ones. Whether its online or offline, gambling and gaming companies need an omnichannel solution that can isolate fraudulent behavior, so they can maintain a seamless experience for high-value customers.
4. Know who is selling on your marketplace
Anytime you’re in the neighborhood of a big match or concert, you are offered great deals on what looks like officially licensed merchandise. Of course, if you pick up a couple of those items, chances are the team logo on a shirt will fade away after a few washes and the shoddily made shoes will fall apart the first time you go on a run. Problems with bootleg merchandise go hand-in-hand with popular events like the Euro Cup, and online retail and marketplaces have only opened up new avenues for illegitimate sellers.
No one wants to be the dunce wearing the off-brand scarf, and fans want all the help they can get to avoid becoming victims. As a retailer, securing online marketplaces can go a long way to protect consumers from unscrupulous sellers. Smart, ever-evolving models catch users who don’t play by the rules and keep legitimate buyers confident that they’ll get what they pay for.
With sophisticated machine learning and artificial intelligence, Feedzai delivers the power of cognitive intelligence to help businesses secure accounts, personal information and online marketplaces. Whether customers are buying tickets for a match, reserving a hotel, placing a bet or buying their favorite team’s official jersey, Feedzai enables merchants, platforms and payment providers worldwide to deliver a seamless experience – rather than treating valued customers like fraudsters. With the right protection, fans can focus on cheering their team and catching every unbelievable play as it happens.
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