Ecommerce Fraud Prevention | XTN Cognitive Security


We spot fraudulent activity monitoring your customers’ digital profiles.

Market Overview

E-Commerce fraud is a pervasive issue on online platforms, driven by the increasing volume of daily online purchases, which fraudsters exploit at an equal pace. The impact of fraud on an E-Commerce store can be devastating, causing significant financial losses and damaging its reputation. In light of this, adopting a robust fraud protection solution becomes essential to safeguard the business and its customers.

What is it?

E-commerce fraud encompasses a wide range of malicious activities deliberately targeting online stores. The prevalent attacks often revolve around fraudulent transactions executed using stolen credit card information.

How does it work?

E-Commerce fraud happens when a fraudster succeeds in stealing a genuine user’s credit card information and then using them to perform a transaction. There are countless schemes of E-Commerce fraud such as account takeover, card testing fraud, chargeback fraud, refund fraud, and interception fraud.

The challenge

Detecting E-Commerce fraud presents several challenges due to its constantly evolving nature and the diverse tactics employed by fraudsters. The increasing volume of online transactions makes it challenging to distinguish between legitimate and fraudulent activities accurately. Moreover, fraudsters continuously adapt their methods, making it difficult for traditional rule-based systems to keep up with new fraud patterns and behaviors. As a result, businesses need advanced solutions that leverage sophisticated algorithms and behavioral analytics to detect fraudulent transactions effectively and protect their customers’ financial well-being.

How we can help

XTN’s Cognitive Security Platform® offers a comprehensive and unique solution to combat E-Commerce fraud effectively. Our E-Commerce module provides continuous monitoring of payments generated by both physical and virtual POS systems, catering to both acquiring and issuing needs. Leveraging real-time fraud protection and user behavior risk analysis, our platform identifies patterns of fraudulent activity based on user and merchant profiles.

The XTN E-Commerce Fraud Protection solution covers the following main areas of analysis:

  • Card Behavior Analysis: Profiling card activity for early detection of suspicious transactions (Business Hour and Geolocation Controls). We have the capability to integrate, within a card issuing scenario, the user’s behavior in card usage with their habits in accessing other channels offered by the bank (online, P2P, TPP).
  • Merchant Behavior Analysis: Identifying suspicious activities at the point of sale through comprehensive merchant behavior analysis.
  • Analysis of Payment Volume: Utilizing baseline data to detect anomalies in transaction volume and amounts.
  • Payment Details Anomalies: Flagging transactions outside of regular business hours and cross-checking geolocation, card issuer country, and shipping address.
  • White/Black Lists: Incorporating checks on MCC, card brand, IP source geolocation, Compromised PoS (Point of Sale), reputational information and more for enhanced fraud protection.
Business Risks

Consequences of eCommerce Fraud can impact a digital business by:

  • Financial loss
  • Revenue and bottom-line impact
  • Operational costs
  • Customer churn
  • Impact on growth


Have any question? We’d love to hear from you. 

Related Contents

Stop fraud, not customers!

Contact us today