E-commerce solutions company, eStar, has launched a standalone SaaS-based tool to protect retailers from fraud by automating risk analysis of online orders.

Risk Management Profiler (RMProfiler) uses patterns and analysis gained from eStar’s 12 years of analysing e-commerce fraud data from a client base, including some of the largest retailers in New Zealand and Australia, to reduce fraud.

Retailers which rely solely on blacklisting credit cards which have been proven fraudulent fail to detect dishonest behaviour by customers using their own cards.

According to eStar, so called “friendly fraud” scenarios are responsible for over 60 per cent of all claims such as when a customer claims a refund from their credit card company by disputing they received the goods, claiming they never ordered them, or that there was a problem with the product.

“Online fraud is much closer to home than retailers might think, and it can be any purchase value made by any purchase method, and much of it originates from legitimate but dishonest buyers,” said Andrew Buxton, CEO of eStar.

“Combating online fraud requires retailers to do more than just use a reputable payment gateway and follow normal security practices with credit cards. RMProfiler makes accurate fraud prevention more cost effectively available to all NZ retailers, reducing the financial and risk to reputation burden of fraud.”

RMProfiler applies heuristic and algorithmic analysis to instantly compare orders against risk metrics such as fraudulent addresses, order velocity and value, customer behaviour and payment data validation, and comparison.

“eStar is the sort of tech-driven company that Callaghan Innovation exists to support and we’re pleased to have been able to play a part in its success to date,” says Tim Mulcock, customer manager at Callaghan Innovation.

“The Callaghan Innovation grant program contributes to research and development and now provides eStar clients a tool to combat online fraud and increase retailer sales.”