Business: Leading provider of banking and financial services with a significant global footprint. The organization offers a range of banking products and services to personal, commercial and corporate and institutional customers.
Challenge: The need to balance ecommerce payment transaction security and a smooth customer checkout experience across a range of payment card portfolios, some that were particularly fraud prone. The bank wanted a seamless checkout experience for legitimate customers so they would not abandon shopping carts or use a different form of payment while at the same time stopping fraudulent transactions. Additionally, implementation of the solution needed to be quick and inexpensive without requiring internal bank IT resources.
Solution: CA Technologies “zero-touch” 3D Secure authentication solution provides the bank a first line of defense to reduce card-not-present fraud. The solution uses advanced neural network behavioral models to identify legitimate cardholder transactions transparently without interrupting the checkout process. Adaptable, dynamic rules can apply business risk policies to suspicious transactions and produce alerts, require stronger authentication, or deny transactions altogether. The combined solution creates a frictionless checkout experience for legitimate cardholders.
Benefit: The bank detected a significantly higher number of fraud cases while impacting a much smaller portion of the transactions with significantly fewer abandoned transactions and significantly reduced operational cost. The strong protection of 3D Secure was delivered through a streamlined cardholder checkout for legitimate online transactions resulting in a dramatic decrease in abandonment rates—abandonment fell below one percent. Failure rates for transactions processed were reduced by a factor of 60 percent. These factors translated into the equivalent of another full-day's worth of successful transactions processed successfully each month—with no increase in fraud losses.