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	October 3, 2006 Are Your Online Customers For Real? Online Credit Card Fraud Detection Services by Laura Koetzle with Jennifer Albornoz Mulligan, Sarah Bernhardt

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Executive Summary

The risk of fraud in online transactions increases because you can see neither your customer nor his credit card. Products using either filters or neural networks can help you detect fraudulent transactions. For small to midsize businesses, filters are the best bet, while big firms should invest in neural network solutions because they can achieve greater accuracy when deployed against large numbers of transactions. And don't stop there — make additional automated fraud detection mechanisms, including address verification systems, out-of-band customer follow-up, credit card verification code validation, and real-time authorization part of your risk management arsenal, too.

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