Electronic payment processor's implementation of FraudNet:
Scottsdale, Ariz. – November 17, 2008 – 41st Parameter® Inc., the leading provider of Internet fraud intervention and detection services and technology, today announced Mercadotecnia Ideas y Tecnología (MITec), Mexico's premier airline and travel industry payment processor, has expanded its business to offer dedicated fraud prevention screening services to its clients. Through the deployment of 41st Parameter's comprehensive fraud detection and transaction monitoring application, FraudNet, MITec has built a Payment Solutions Division which includes a complete Fraud Prevention Management offering.
As a leading transactional gateway in Mexico, MITec sought to enhance its current specialised transactional services, particularly within airline and travel industry clientele. With the rapid increase of consumers seeking to purchase airline reservations and associated travel services online, MITec recognised fraud detection and prevention would be an important growth area. No other provider in the country offers a comprehensive solution to battle the ongoing problems associated with fraudulent reservation purchasing activities.
Prior to FraudNet, MITec relied exclusively on Address Verification to analyse several hundred thousand card not present transactions per year for potentially fraudulent reservations. Since implementing FraudNet, MITec has established a new, fully-functioning fraud prevention management group requiring a staff of only seven full-time fraud investigators. By substantially reducing the number of reservations requiring scrutiny, FraudNet enables the team to cut existing customer's fraud while expanding capacity to accommodate their growing customer base.
"Our team of investigators was pleased as they worked with clients affected by serious fraud problems, and noticed that within the very first days of utilising FraudNet, we were able to identify a great amount of high risk orders which are now rapidly decreasing," said Gabriel Gomez, director of fraud prevention for MITec. "For us, this confirms that fraudsters migrate from sites that they perceive as protected, to others in which their fraud attempts prosper. As soon as FraudNet began detecting fraudulent orders and they were not processed, we found a drastic reduction in fraudulent activity as the fraudsters seemingly moved away from our customer sites."
MITec's airline and travel industry clients have reported notable results including a 46 per cent reduction in chargebacks within the first six months of implementation at one airline. Another airline client confirmed attempted fraudulent activities dropped by 60 per cent in its first month utilising MITec’s FraudNet powered service. Both airlines have lowered their fraudulent transaction attempts and review rates to well below industry standards. With FraudNet, MITec additionally pinpointed a major fraud ring comprised of organised criminals most wanted in Mexico for online fraud.
"With the global consumer's rapid migration to the online channel for purchasing airline reservations and other travel related services, 41st Parameter technology enables organisations like MITec to provide their clients with the highest level of confidence in the legitimacy of reservations they are accepting online," said Ori Eisen, founder and chief innovation officer at 41st Parameter. "We are extremely pleased MITec has benefited so greatly utilising our technology, expanding their business while reducing fraud for their airline and travel industry clients."
About Mercadotecnia Ideas y Tecnología
As an innovator in the electronic payments and processing space, MITec offers capable and interactive solutions for both the physical and virtual sales channels. Based in Mexico City, MITec is a privately owned company that processes close to 1,400,000 transactions per month, serving clients in the cable, insurance, retail and airline industries.
MITec is a leading transactional gateway in Mexico. The company provides specialised transactional services, from banks to retailers and inter-institutions, making a smooth technological connection between them allowing better payment solutions, customer services, information exchange and value added services based on marketing focus, client oriented philosophy and the best available technology.
About 41st Parameter
41st Parameter is the leader in fraud intervention, providing proven solutions to protect company brands and customers, reduce fraud losses and make the Internet a safer place to conduct business. Through a combination of risk management and loss prevention experience, and leading technology coupled with human interaction and best practices, 41st Parameter's solutions provide an unprecedented level of detection capability, decreasing the anonymity of the Internet and providing valuable insight to every online transaction and customer interaction. 41st Parameter makes the process of detecting and preventing fraud easier and more effective, reducing both expenses and potential losses. For more information, visit www.the41st.com.