Littlewoods.com, QVC and Shop Direct have all pulled together to help prevent fraud through the use of consumer insight and the anti fraud specialist Transactis.
The new scheme is called TRADE. The system allows retailers/brands to share real time consumer data that enables them to flag up suspect transactions and customer claims such as false reports of lost deliveries and returns. The data shares are not used for any other purpose than to catch out potential fraudsters.
The aim of TRADE is to better equip retailers to identify, investigate and challenge potential threats and fraudsters. It will also make it easier for retailers to authenticate legitimate customers avoiding any embarrassing misunderstandings.
TRADE allows retailers to make quicker decisions over questionable customer claims and dubious activity based on the TRADE analysis of consumer behaviour patterns. TRADE officially stands for Transactis Risk Assessment Data Exchange.
John Pears, director of credit risk and operations at Shop Direct explains there reasons behind getting involved with the scheme: “TRADE has been put together with input from retail players that really understand the impact of fraud and the need for a loss prevention platform that addresses the challenges they face each day. The retail industry especially the companies involved in ecommerce and other forms of home shopping – needs a system that takes this type of loss prevention to the next level.”
He adds: “Previously, we‘ve had to rely on data developed for use by financial institutions, which does not fully address the very specific cyber threats that online retailers are facing today. TRADE will add a new, universal layer of fraud data that will enable retailers to identify these threats more effectively and reduce fraud losses as a result.”
Martin Spencer, Finance Manager of QVC UK, comments: “Best practice and doing things the right way – for both the business and the customer – depends on having the right tools to tackle retail fraud. TRADE provides a new and essential instrument for doing this, providing a ground-breaking means of cutting down losses arising from first-party fraud against retailers engaged in ecommerce. It is a solution that the whole sector could pick up on – to everyone in the industry‘s advantage.”
He concludes: “Companies in the retail industry have not really worked together before to deliver a collective anti-fraud service that covers both card and credit transactions, so TRADE is providing a real opportunity for a level of information-sharing that has not previously been possible. This will not only ensure quicker and more effective fraud screening, but it will mean that we and other TRADE members can do a better job of making sure genuine customers get the best possible service.”
The scheme already brings together consumer data from nine million UK households- 39% of the market place. The more companies that get involved the more effective the scheme will be in helping to spot potential fraudsters as well as customers that use multiple identities to try and trick brands and retailers into refunding money they do not owe.