Evaluate the fraud risk associated with an email address and confirm identity with LexisNexis® Risk Solutions

Emailage enables you to assess email addresses and understand the likelihood of them having been used in fraud. LexisNexis® Risk Solutions provides this capability in LexisNexis® IDU®, which can be accessed directly through a web-based app or integrated into existing systems via API.

This case study illustrates how Emailage provided their capabilities to a global e-commerce merchant and the benefits they enjoyed. IDU delivers Emailage fraud risk assessment alongside expansive identity verification and authentication, providing the added ability to conduct robust identity checks throughout the customer journey.

Emailage identifies the majority of fraud for global eCommerce merchant

Projections from digital marketplace researcher eMarketer, show that global eCommerce sales are expected to top $27 trillion by 2020. Does your organisation have the resources to scale the fraud prevention department every year to match increased needs?

This case study is an in-depth look at how a global eCommerce merchant used Emailage Risk Assessment to identify a majority of their fraud in over 100 countries, both online and in retail stores. The merchant desired a solution that easily integrated, required a minimal amount of data, achieved results immediately, and could be scaled for increased eCommerce sales.

The global merchant selected Emailage Risk Assessment based on the following criteria:

•  Fraud prevention results using non-sensitive data

•  Global coverage

•  Customisable transaction segmentation

•  Multiple methods of integration

Need & background

Before selecting Emailage Risk Assessment, this global eCommerce merchant handled all fraud prevention internally. For implementation, the merchant required a solution that allowed internal teams to leverage outside data.

Key objectives included: expedited approval of legitimate transactions, lower manual review rates and overall reduction of fraud losses. Because the merchant operates globally, finding a solution that worked across channels was imperative.

Solution

To immediately implement Emailage Risk Assessment, the global eCommerce merchant utilised batch file uploads to assess transactions.

For the first two months, the fraud department manually downloaded a report containing email and IP addresses associated with transactions from the past 24 hours. The fraud department’s initial implementation of Emailage was:

•  Analyse the file with the Emailage Risk Assessment solution

•  Assign High Risk Band transactions for manual review

•  Approve Low Risk Band transactions for processing

While this process was manual, it acted as a stopgap solution until automated API integration was complete. Batch file uploads allowed the global eCommerce merchant to see results in their fraud prevention process starting on day one.

During the third month, API integration was completed. API integration meant that the email and IP addresses of all transactions were analysed and scored by Emailage Risk Assessment.

Outcome

By manually leveraging Emailage Risk Assessment for two months, the global eCommerce merchant identified 30% of their fraud, with a hit rate of over 50%. The ability to segment transactions also helped the department optimise processes through prioritisation of the fraud review workflow.

After this initial success, automated API integration and the cross-validation of email and IP address were implemented. These changes led to a lift of 50% more fraud detected and an increased hit rate of over 72%.

As a result of these improvements, the company was able to achieve a twelve month return on investment of over $19 million in prevented fraud.