Risk operation analysts use several instruments when conducting payment verifications, such as:

  • performing lookups;
  • consulting risk statistics;
  • e-mailing; and
  • telephoning clients.
Approach Description
Lookup Based on the characteristics of the payment, e.g., the IP address, the email address, the delivery address, etc., reviewers may retrieve all the transactions matching these characteristics.

If that information is not in their IT system, they can also connect to the system from their payment service provider or acquiring service.

In addition, lookups on social media networks, public databases, and mapping websites are also commonly performed.

With look up, risk operation analysts can verify the buying and payment fraud history for each payment characteristics. In turn, a characteristic’s track record may help the analyst make an objective decision.
Risk statistics Internally, risk operation analysts may have access to histories of payment fraud and to risk statistics.

By extracting such statistics from the database, analysts may improve the objectivity of their manual verifications.
Email client Emails are an additional instrument for risk operation analysts when conducting payment verifications. They use emails to reach out to clients when there are doubts about payments.

Reviewers usually ask the client for a digital copy of official proof of address, e.g., a utility bill, phone contract, or rental contract.

However, one issue with these types of documents is that they can be counterfeited. Hence, without proper training in online forensics, the reviewer may not identify forged documents, and the fraud may remain unnoticed.
Phone client Finally, the reviewer may call the client. Usually, this is a last-resort option because clients do not like calls made to verify payments, especially if:
  • the purchase is private and the call is made during office hours; or
  • the questions asked lead the client to believe that he or she is suspected of fraud.

In turn, those calls will affect the client’s satisfaction and, potentially, his or her lifetime value.

References