Clearsale Blog Posts
When it comes to choosing an anti-fraud solution, should your business use an internal team or a third-party solution? It is a great decision because it can dramatically impact various workflows of your company, in addition to the increased tendency to fraudulent order entries, if it is not an extremely well-thought-out decision. Here are some reasons why an e-commerce wishes to consider keeping an internal team against fraud and whether this decision makes sense.
You must have full control over the entire process of anti-fraud managementIf you have a concern that no one knows your business as well as your employees, a reliable internal team specially selected by you and, under your control can be the best solution. When the internal hiring is well-made, you can build a talented team committed to combating fraud.
The risks: the continuous training is essential to keep your team up-to-date on the evolution trends of fraud, otherwise, you can pass up fraudulent events. You also need to ensure that your team has enough manpower to cover sudden increases in the number of sales (without maintaining effective people in excess during slow times). To keep a team in service requires dedicated resources and solid work, while an outsourced solution allows specialists to have fast, convenient access when problems arise or attacks are detected.
Budget and resources are not main concerns
If you have access to the right talent and correct systems, keeping an experienced internal anti-fraud team can allow you to weaken efficiently the exposed frauds. In addition, an internal team will allow you to control all the costs.
The risks: the money to hire, train and retain a team of experts in fraud detection internally can be significant. You should consider other costs, such as investments in IT hardware and software that will be needed for the establishment of a system of monitoring and analysis for your team. There may also be indirect expenses associated with the false rejections, which can happen if your anti-fraud team gets too excited and accidentally rejects valid orders that appear to be fraudulent. These false rejections do not mean just to fail to sell, but can also lead to unsatisfied buyers, hurting the user experience that can start a negative word-of-mouth marketing.
Being concerned about protecting important data.Companies which care too much about privacy, confidentiality and data loss can be more comfortable when using their own internal anti-fraud team. For example, traders in the medical industry may have access to federally protected sensitive data to maintain the privacy of that individual. Share this information with employees can seem less dangerous than sharing it with a third-party vendor, even if your risk of fraud is the same.
The risks: service providers are specialists in data administration, so they will usually have data resources and protection policies with more refinement that the trader himself.
Balancing the Costs of Internal Anti-fraud Protection
The decision whether to outsource or not your anti-fraud management can be tricky. The circumstances of your company will help guide you in this choice. To internalize, you must be prepared to handle 100% of the anti-fraud management tasks and to keep up with the frequent changes in fraudulent tendencies while maximizing your approval and conversion rates, as well as anti-fraud protection. It is a great investment that requires high financial resources, intellectual and experienced labor, so think about it, talk to experts and always look for what is best for your business.