Jennifer: He says fraud management in places like this has changed quite a bit since he started this job. For example, they used to set up filters based on some simple questions.
David Cost: Was it a customer that we had ever seen before, right? We had certain flags that we would look for and somebody would manually go look at those orders and kind of have to just make a guess on whether they thought that order was good or not. We ship it out and if it turns out it’s not good, then we, the retailer, you know, take that loss. So it’s as if somebody stole those goods. It’s the same thing as shoplifting. You know, and it can, it can have a real impact on your business and you want to be careful. If you’re too cautious, you turn good business away. I mean, there’s nothing worse than taking a customer who’s got a good valid form of payment and telling them, nope. Sorry. Doesn’t look quite right, so we’re not gonna ship it.
Jennifer: One place Rainbow came up against this… was in doing business with buyers in other countries.
David Cost: So they’re placing the order from one of the islands in the Caribbean. So their billing address is a Caribbean address, they’re shipping the goods mainly to a Florida or a Texas re-shipper’s address where a bunch of orders are combined to go to the island, right? And then they’re taken into those islands. These are good customers but for traditional fraud, to be able to see that foreign credit card, foreign address, but a US delivery…
