Product Documentation
Product Documentation
Transaction and payment fraud continues to rise and distributors are not immune to it. Most Kodaris customers see fraud as a significant issue since transaction sizes in the distribution space are typically much larger than retail. Kodaris recognizes these risks and developed a solution to help reduce the likelihood of users becoming victims of payment fraud.
To help customers reduce the risk of falling victim to fraud, the Kodaris platform leverages MaxMind’s minFraud service to identify possible instances of fraud. This optional Kodaris service provides notifications for potential fraud, transaction risk based scoring, and the ability to block transactions and payments based on pre-defined risk score acceptance criteria.
The Kodaris fraud detection service provides extra layers of security for the following platform payment flows and actions:
Once enabled on the Kodaris platform, each transaction flow outlined above receives a Risk Score. The risk score is given as a percentage ranging from 0.01 to 99 and represents the chance that the transaction is fraudulent. For example, a risk score of 20.00 means that the transaction has a 20% chance of being fraudulent, while a risk score of 0.10 means that the transaction has a 0.1% chance of being fraudulent.
The Risk Score returns an actionable output based on the company’s accepted level of risk. Some of the features that go into the risk score include:
Determining the thresholds you set for different actions requires fine tuning over time. We recommend first considering the cost of fraud and potentially lost goods or services, the cost of manual review, and the cost of rejecting good transactions. The risk strategy relevant to your business may mean more or less tolerance for risk as you begin using the risk score.
After monitoring the risk scores received for the manually reviewed transactions, you can adjust the thresholds appropriately to reduce the amount of manual review required. For example, you might wish to automatically accept transactions with a relatively low risk score (e.g., 5.00 or lower), automatically reject transactions with a relatively high risk score (e.g., 50.00 and higher), and manually review all other transactions. After monitoring the risk scores received for the manually reviewed transactions, you can adjust the thresholds appropriately to reduce the amount of manual review required.
Once the fraud scoring service is enabled on the Kodaris platform, the company’s users can opt in to receive notices when a customer's fraud score exceeds the company’s selected risk score value. This allows employees to receive real-time notifications of potential fraud when transaction scores exceed the risk threshold set by the company.
Payment transaction scoring can be monitored in the platform’s Fraud section, where the data can be viewed and sorted based on payment date and risk score. The risk factors influencing the score are reported within the details of each transaction and it’s easy to see and understand so the company can make an informed decision.
Transaction scoring is also reported within each order, so it's easy to see the risk rating and the factors influencing the rating within each order.
Within the Fraud menu, it’s easy to enable and configure fraud protection and also set or change the tolerable risk scores.
