ID Insight Introduces Analytic Solution to Combat Online Retail Fraud, Cut Losses

Safe2ship^SM lets retailers manage Bill-to/Ship-to Discrepancies

NORTHFIELD, MINN — August 12, 2008 — An estimated $3.6 billion. That’s the price online retailers paid in revenues lost due to fraud in 2007 — a whopping 20 percent more than the prior year’s losses. Along with the jump in fraud losses, the number of costly manual reviews is escalating, as well. Nearly one-third of online orders are held up because they are considered suspicious due to bill-to and ship-to address mismatches.

But the tide is turning — online retailers now have a tool to effectively and efficiently slash fraud losses. New from identity-fraud risk-assessment company ID Insight, Safe2Ship^SM allows online merchants to determine legitimate orders from fraudulent ones in a split second and with unparalleled precision. Using ID Insight’s proprietary Access-Point Intelligence^SM technology, Safe2Ship helps online retailers process more valid orders without delays, while substantially reducing expenses.

Access-Point Intelligence

Access-Point Intelligence from ID Insight provides an unprecedented risk assessment of the consumer transaction. By combining the most comprehensive set of data with ID Insight’s patent-pending Address Differential Analysis, Safe2Ship analyzes every available piece of information about a customer’s access points: physical address, phone number, IP address and email. Safe2Ship produces a risk score on 100 percent of transactions, returning a decisive, actionable assessment in about one second.

Here’s how it works: An online retailer sends in bill-to and ship-to addresses in real time or in batches. In about a second, the Safe2Ship engine examines hundreds of address-related data points looking for out-of-pattern shipping behavior. Then, ID Insight’s patent-pending predictive analytics are applied to determine the likelihood of fraud in a mismatch between the bill-to and ship-to address.

The engine generates a Safe2Ship risk score, which predicts the legitimacy of each address mismatch and the likelihood that a potential case of fraud is underway, effectively nipping fraud in the bud. Safe2Ship’s score-based system allows merchants to adjust their risk tolerance as business factors change, and may be added to a retailer’s existing system without disrupting business or the bottom line.

“With Safe2Ship’s cutting-edge technology, the truly fraudulent orders are flagged immediately for further review, and the legitimate orders are allowed to ship, helping to maintain and even improve customer satisfaction — all with one tool,” says ID Insight president Adam Elliott. “In this economy, merchants need tools designed to boost their top and bottom lines now more than ever. Safe2Ship gives merchants a proven method of significantly reducing fraud, ultimately improving processes and cutting costs.”

About ID Insight

ID Insight, the innovator in Access-Point Intelligence, knows more about people and their access points — physical addresses, phone numbers and other points where fraud occurs — than any other identity-fraud risk-assessment company. Based in Northfield, Minn., the company combines its massive collection of data on people and access points with patent-pending analytics to help companies prevent fraud, reduce costs and capture more business. ID Insight provides next-generation verification, authentication, and fraud solutions to financial services companies, credit issuers, retailers, online merchants and wireless providers nationwide. For more information, visit www.idinsight.com.

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