The fine line on using Blacklists
Posted: Sun Dec 22, 2024 5:16 am
For example, the level of approval is essential for the profitability of the business – the more I reject authentic purchases indiscriminately, the lower the revenue and the greater the waste of investments in Marketing. Another factor is the analysis time: if a business had a month to analyze the risk of fraud in a purchase, the assertiveness would certainly be immense, but reality demands fast, if not immediate, deliveries.
From there, questions arise such as: What is better, responding to the customer faster or analyzing a possible attack by fraudsters in more depth? Creating automatic rejection rules or preventing a good consumer from having a bad experience with that company? There are many variables in the perception of companies when deciding to use the famous Blacklist to combat fraud. This tool can be a major villain when it comes to improving the quality of the investigation of possible attacks, if used in isolation.
A great comparison with Backlist is automatic rejection. There are several types of fraud in the market, which do not necessarily come from an unknown person or with bad intentions. For example, what we call “friendly fraud”. Your data may have been used by your mother, for example, to make a purchase without your authorization. In this way, the misalignment of some data may result in a non-approval and your name being placed on a Blacklist. On the other hand, analyses that uk consumer data list the sensitivity of human investigation, for example, would be able to detect the misunderstanding and proceed with the order, generating comfort and a good experience for the end consumer.
There is no guarantee that this or that Blacklist rule will be effective for a long time. Once the fraudster realizes that a purchasing profile is no longer being approved, he gives up or tries another strategy. This choice can have consequences such as losing more revenue than the fraud itself, since good buyers may be on this list and be penalized for misuse of their data.
But what about good buyers? You may wonder who they are and why they would be harmed by poorly analyzed rejections. It's easy to find out who they are! Always entering your true information when making purchases and using your own credit card or someone who authorized you to do so puts you in this category. But what if someone defrauded you? They used your information that was already on the market's radar as reliable. In this case, a blacklist would not give you the chance to prove that you are yourself, so to speak.
Anti-fraud services that use many variables to evaluate and analyze market behavior can find small details that can make a difference in the consumer experience and the profitability of the business. Having a product that is completely tailored and structured to solve your problem is another point of attention when hiring this type of service. This allows you to have a broader view of how your business can be attacked, shielding you from possible attacks from all sides and keeping the good consumer with you, who will certainly have a much more relevant and profitable shopping experience.
As they say, “when the alms are too much, the saint gets suspicious”. Walking down a road as tortuous as fraud requires attention and investment, thinking about the healthy and lasting growth of the business. Broader status classification, monitoring fraud behavior in the market, having more efficient analysis rules, having a fraud analysis table with careful human investigation, and on top of that, without causing friction in the process for the end consumer, can help a lot to keep the fraudster well away from your radar. Because, more than just keeping the fraudster away, these types of solutions prevent him from trying that path again, since the doors will never be easy to walk through again.
A little historical help to understand the emergence of the Blacklist
This term became public when it was used by the United States Senate Committee on Un-American Activities in the 1950s to refer to a group of people who were persecuted or prohibited from practicing their profession under the accusation of being communists. All this at the height of the Cold War. Adapted to the present day, it is nothing more than a list of people or entities who are denied some type of service or privilege.
From there, questions arise such as: What is better, responding to the customer faster or analyzing a possible attack by fraudsters in more depth? Creating automatic rejection rules or preventing a good consumer from having a bad experience with that company? There are many variables in the perception of companies when deciding to use the famous Blacklist to combat fraud. This tool can be a major villain when it comes to improving the quality of the investigation of possible attacks, if used in isolation.
A great comparison with Backlist is automatic rejection. There are several types of fraud in the market, which do not necessarily come from an unknown person or with bad intentions. For example, what we call “friendly fraud”. Your data may have been used by your mother, for example, to make a purchase without your authorization. In this way, the misalignment of some data may result in a non-approval and your name being placed on a Blacklist. On the other hand, analyses that uk consumer data list the sensitivity of human investigation, for example, would be able to detect the misunderstanding and proceed with the order, generating comfort and a good experience for the end consumer.
There is no guarantee that this or that Blacklist rule will be effective for a long time. Once the fraudster realizes that a purchasing profile is no longer being approved, he gives up or tries another strategy. This choice can have consequences such as losing more revenue than the fraud itself, since good buyers may be on this list and be penalized for misuse of their data.
But what about good buyers? You may wonder who they are and why they would be harmed by poorly analyzed rejections. It's easy to find out who they are! Always entering your true information when making purchases and using your own credit card or someone who authorized you to do so puts you in this category. But what if someone defrauded you? They used your information that was already on the market's radar as reliable. In this case, a blacklist would not give you the chance to prove that you are yourself, so to speak.
Anti-fraud services that use many variables to evaluate and analyze market behavior can find small details that can make a difference in the consumer experience and the profitability of the business. Having a product that is completely tailored and structured to solve your problem is another point of attention when hiring this type of service. This allows you to have a broader view of how your business can be attacked, shielding you from possible attacks from all sides and keeping the good consumer with you, who will certainly have a much more relevant and profitable shopping experience.
As they say, “when the alms are too much, the saint gets suspicious”. Walking down a road as tortuous as fraud requires attention and investment, thinking about the healthy and lasting growth of the business. Broader status classification, monitoring fraud behavior in the market, having more efficient analysis rules, having a fraud analysis table with careful human investigation, and on top of that, without causing friction in the process for the end consumer, can help a lot to keep the fraudster well away from your radar. Because, more than just keeping the fraudster away, these types of solutions prevent him from trying that path again, since the doors will never be easy to walk through again.
A little historical help to understand the emergence of the Blacklist
This term became public when it was used by the United States Senate Committee on Un-American Activities in the 1950s to refer to a group of people who were persecuted or prohibited from practicing their profession under the accusation of being communists. All this at the height of the Cold War. Adapted to the present day, it is nothing more than a list of people or entities who are denied some type of service or privilege.