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Re: One Year Ago: Credit Card Fraud Crippling Online Merchants
Posted by: ECT News 2001-03-20 18:32:54

While credit card companies have consistently maintained that
credit card fraud is no more prevalent online than in traditional
forms of commerce, a number of experts are disputing the notion.

According to Alvin Cameron, Credit/Loss Prevention Manager
for online fulfillment house Digital River (Nasdaq: DRIV),
an estimated 20 to 40 percent of online purchases are fraud
attempts. Accordingly, Cameron says, e-tailers are now facing
a do-or-die proposition.

Re: One Year Ago: Credit Card Fraud Crippling Online Merchants
Posted by: DR WAEL GHUNEIM 2001-03-20 20:23:02 In reply to: ECT News

I agree with you on all what you said about the inconvenience and the hastlesome of the existing protection systems.

As it is obvious to all credit card users (merchants as well) , whether on-line or real -life shopping, we are all potential vectims.

Anticipating the severity of this problem years ago; I worked more than five years in order to solve this problem. Finally I came up with a new approach. It took me one year more of critical-thinking, how to simplify the solution. Now,it is , yet efficient, It is a real break through.Simply it meets the requirements of an ideal solution.
Its effeciceincy relies on how it is understood, the harmony of its functioning elements, as well as the new concepts utilized.A prototype has been tested -on confedential basis - by professionals and a small sample of end users, and it was found to be capable of making credit card crimes" something of the past".

Now, the question is: who does really care about such a problem ! and who is serious about exploring the solution!!!

Re: One Year Ago: Credit Card Fraud Crippling Online Merchants
Posted by: Mike Highland 2001-03-21 15:54:01 In reply to: DR WAEL GHUNEIM

Nothing but strigent security on a server hosting creditcard numbers will prevent "hacker" pilfering of those records. I think the issue here is raised about the POS ( Point of Sale) transaction betowwen buyer and order tacker/fulfillment house. Zilch possibilities exist to intercept the actual transaction data being routed to or from a secure server and shopping cart program. Face no reported way the the bits and bytes can be deciphered along the zillions of routes from point A to B. If a merchant refuses within the shopping cart/ordering setup master file to accept orders not shipped to the BILLING address then he'll never suffer a loss. The thief would have to kidnap the cardholder or take over his house while away to be there to greet UPS or Fedex to get the perloined goods.

The real world face to face purchase and then shipping to a gift address doesn't pass on any greater risk to the the merchant getting defrauded. Case in point of the 240 e-commerce sites I have designed and launched ..only those that accepted foreign shipments were ever milked by a stolen credit card. Basically the European and Russian mobsters sell stolen card numbers to those who buy from merchants and their affiliated sites who ship overseas. Don't want to get took..get a realtime credit card merchant online account for 25.00/month and be done with it. Card holders never get burned ( maybe 50.00) but merchants take millions in losses by shipping to non-billing addresses.