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Merchant Fraud Journal recently released its “2020 Fraud Trends Report“. The report contains interviews with experts from 13 leading eCommerce fraud prevention solutions. We asked them about the strategies and tactics they expect fraudsters to use in the coming year. In addition, they gave insight and advice about how merchants can protect themselves.

Below is an excerpt from our interview with Rafael Lourenco EVP, ClearSale.


When asked about the fraud trends merchants need to look out for in the coming year, Rafael stresses the need to properly use sophisticated statistical modeling to analyze fraudster patterns, and shares his advice for what fraud analytics modeling should looking:

“The fact of the matter is that until just a few years ago, rules-based systems were used by most fraud protection teams, even though machine learning was available. Rules-based systems are clean and simple and provide a scoring that feels black and white. Businesses love this kind of scoring, but unfortunately reality is not as clean and simple as rules-based would have you believe,” he said in the report.

On the topic of the new European Union Payment Services Directive 2 “PSD2”, Rafael expressed worry that a significant number of merchants remain unprepared to implement the requirements:

“First off, it’s important to note that I’m very concerned about the lack of knowledge about PSD2 and how it will affect this industry. Even businesses in Europe overwhelmingly either do not know about the regulations or have no plans in place to meet the deadline. I see that this will be an ongoing issue in the year to come, and I’m worried about the potential risk that merchants are facing if the regulation is ignored,” he said in the report.

To read the entire interview with Rafael, as well as insights from twelve other fraud prevention experts, click here.

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