Case Study


Trip.ru is one of the leading Russian online travel agencies. The main activity is issuing airtickets over the web, specialized in flights from and to Russia

Background

Doing online business in Russia and generally in all ex USSR countries, without losing money on online fraud transactions,  is most of the times a very challenging task. Cyber criminality is unfortuantely very popular. Trip.ru is effecting most of its annual transactions using online credit card payments.
This factor attracted fraudsters who try to purchase tickets with a stolen credit card.
The typical story goes like this: The cyber criminal uses a stolen credit card number to purchase a airticket online. After a month or so, the company receives a letter from the bank asking for documents proving the transaction.
Since on internet all credit card payments are considered as “Card No Present” transactions (CNP), Trip.ru is fully liable and has to refund the money back (charge-back).

The company's reaction trying to reduce its monthly losses is:
Manual monitor of each transaction - labor inefficient
Market exposure limitation - killing growth
Hard-coded rules - punishing good customers

The company's losses due to online fraud exceeds most of the months the succeeded gross profit. Imagine that the margin on airtickets is so small that if a high value transaction proves to be a fraud, then hundreds of healthy transactions are needed to compensate the loss.
Trip.ru searches desperately for a software solution, easy to adapt, with no starting costs and easy maintenance

Solution

Trip.ru people found Fraudpointer by searching on the Google Marketplace and immediately signed up in order to evaluate. The implementation was lightening fast, since no additional software or hardware was needed.
Since the people of Trip.ru did not have any experience on Rules Engine in the past, they asked from the Fraudpointer Support Team to provide consultancy services on building up and customizing the needed rules engine.
In this way any effort for customizing the platform to the particular business activity, was reduced. The cloud-based Fraudpointer platform was ready to fight fraud!

Result

After a few days of running with our rules engine, device identification and reputation database protection layers active, the results were at least impressive:
-CNP fraud reduced by more than 82%
-Cases for manual review reduced by 75%

The impact to the business was of key importance:
-No more distraction from the core business
-No more losses due to CNP fraud that could affect seriously the economic future of the company
-No more losses of revenuew due to unfairly punished good customers
-No more danger for business disruption*
-Open door for all the new developing markets without any hesitance

*as Credit Card Association trigger sometimes severe fines (or even block the account) to merchants with high fraud transaction rate


"The Russian market is a non-ordinary tough online market, with all modern fraud techniques on payment present...without Fraudpointer we would not be able to survive due to the daily attacks and losses...”

Penny Rizou, Financial Officer of Trip.ru, the number one online Travel agency in Russia


About Fraudpointer

Fraudpointer is a Software as a Service platform that enables businesses to prevent online fraud. The service combines a sophisticated but easy to use rules engine, a multi-million deep online reputation database and an advance device fingerprinting technology. Fraudpointer helps businesses to successfully prevent “card not present” transaction fraud, account take-overs, digital rights misuse and abusive behaviors. The platform is easy to integrate and fully customizable. If you run a business in the industries of banking, online travel, e-commerce, gaming and MMO, online gambling and casino, dating and social networks
Apply for your free account and start fighting fraud today!

For any supplementary information on the Fraudpointer solutions read the content of www.fraudpointer.com or contact our Sales Team on: sales@fraudpointer.com