Reducing Fraudulent Transactions

Fraudulent transactions are an increasing problem for many companies in financial services, particularly with increasing volumes of Internet and card not present transactions, as well as global travel. The cost of fraud can be substantial and managing the process adds even more cost to a business. But, the opportunity cost of labelling a genuine transaction as potentially fraudulent is even higher. Oxygen8 Business Solutions are designed to reduce fraud, reduce the cost of managing the process and help you identify genuine transactions.

Business Benefits

  • Reduce the time to identify and solve a fraudulent transaction – reduce time from hours to minutes by automation
  • Decrease fraud costs – identify fraudulent transactions quickly to reduce further risk of fraudulent transactions
  • Increase revenue – increase the number of genuine transactions with positive consumer response
  • Improve management information – You cannot tell if a customer has read a letter, Oxygen8 offers delivery receipts
  • Improve Call Centre Efficiency – automate simple customer care functions and reduce call centre overhead

Features

  • SMS, email and voice broadcast communication options
  • Easy integration to Business Systems – build services in minutes
  • Call Connect to connect a user directly to your call centre
  • Act on Delivery Receipts
  • Use unique PINs or CVV to authenticate CNP transactions
  • Add location based look ups to further authenticate

Which Companies can Benefit?

  • Banks
  • Card Issuers
  • Online Retailers

Australian card fraud is increasing as part of a global trend:

There were an estimated 38 million debit card accounts and 15.5 million credit card accounts on issue in Australia in 2013.
With 87% of the adult population estimated to own at least one debit / credit card, averaging approx. 3 per person.
In 2013 Australians spent a total of $624 billion on credit and debit cards
Card fraud rates grew from 43.6 cents to 48.7 cents for every $1,000 spent., that’s an increase of 4% to the total amount spent .
Most of this increase (72%) is due to a rise in card-not-present fraud, which has increased from $183.1 million to $219.7 million.
The majority of this fraud (59%) occurred overseas.
The biggest factor has been the expansion in online shopping– estimated to have grown annually by 35% over the last 4 years.
10% of Aussies say that they have been a victim of credit card fraud at least once between 2009 and 2014.

Customer User Case

Look Up services can be used to assist with fraud prevention in the retail finance industry.

Using a Look Up service to determine whether a user’s mobile phone is roaming can help with understanding whether an overseas credit card transaction might be fraudulent or not.

An Oxygen8 banking customer was able achieve the following results by combining Look Up Services with SMS messaging:

  • Fraud significantly reduced – 43 frauds identified out of 1000 test messages
  • Each SMS sent saves £6.11 on fraud
  • Reduced time to resolve a fraud from 1.5 hrs to 1.5 minutes
Oxygen8 Australia