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Sub: Refund Protection Solution addresses/explains new types of ticketing and travel fraud.
Berlin, August 2, 2022 /PRNewswire/ – Fraugster, an AI payment intelligence company, has partnered with Worldline, a global leader in secure payments and trusted transactions, to confidently enable travel merchants to weather the storm of the Covid-19 pandemic with a Chargeback Protection Solution. The solution eliminates chargebacks for merchants by taking full liability for fraudulent transactions. At the same time, advanced AI trained on global payment data makes more accurate decisions to increase approval rates. Machine learning and artificial intelligence (AI) innovations allow traders to leverage new deep learning models without historical data.
International travel has been suspended due to the Covid-19 pandemic. This has led to mass cancellations and refunds, but has also created new opportunities for fraudsters to target overburdened travel operators (hotels, airlines and OTAs) and exploit weak points in the system. In addition, there has been a significant increase in so-called “angry returns” where customers say they have refused a transaction, usually due to frustration over a cancellation or booking change. The patterns of covid-19 fraud and consumer payment behavior were very different from before the pandemic. Likewise, data inconsistencies limit the ability to detect and prevent certain fraudulent attacks, such as last-minute short-term cancellations. Return rates rose to more than 3%, normally below a baseline of 0.5%.
“Iberostar experienced a significant increase in fraud pressure during the outbreak. We were pleased that our partners Fraugster and Worldline acted quickly to design a new AI model specifically for us. Within a few months, we reduced the chargeback from 2.76% to 0.07%, which was a remarkable achievement,” he said. Ferran LlompartDirector of Corporate Treasury, Iberostar
Additional factors make return protection more important than ever. The first Frigister analysis showed that the total cost of managing payments was almost 3x higher than the original transaction cost. Average order prices are excessive for constants such as travel 750 dollarsThis refers to the total cost 2000 dollars Fraudulent transactions.
Secondly, 80% of online merchants They are reporting an increase in first-party fraud (also known as “friend fraud”), where credit card credentials are used intentionally or mistakenly. This trend is particularly acute in online gaming environments. These charges are very difficult to prevent or mitigate and are costing companies’ margins, limiting their ability to recover losses from chargebacks.
Together, these trends are increasing merchants’ exposure to chargeback liability and increasing the overall costs associated with chargebacks. With Fraugster’s Chargeback Protection solution, merchants can significantly reduce costs associated with managing chargebacks and chargeback losses without any integration effort.
“Fraugster’s account recovery uses a combination of machine learning and behavioral science to build a better picture of the transaction in question. This means merchants can provide a more seamless shopping experience for legitimate customers and prevent fraudulent transactions that could later turn into chargeback fraud.” Includes possible transactions Christian MangoldCEO of Fraugster. “After adopting Fraugster’s Chargeback Protection solution, we are pleased to see global brands increase their revenue by 5-16% and report stable and more predictable financial coverage for ongoing and bottom-line impacts.”
About Fraugster
Froster A Berlin based payment information company. Fraugster enables global payment companies like Worldline and Ratepay to intelligently manage the impact of fraud to reduce fraud costs, increase revenue and improve customer experience. Fraugster has developed one of the most accurate AI compliance, risk and fraud management and revenue optimization platforms in the market and is backed by Diplotec investors including Early Bird, Speed Invest and CommerceVentures. More information can be found at https://www.fraugster.com/
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