eTailer Alliance Aims to Fight Online Credit Card Fraud

RC Knox & Company, the insurance agency subsidiary of People’s Bank, announced the formation of the eFraud Alliance and the eTailer Fraud Solution Insurance Policy (eFSIP) to protect online businesses from the risk of catastrophic credit card fraud losses.

The eFraud Alliance is a collaboration between RC Knox & Company, a Hartford-based insurance agency; Retail Decisions Inc. (ReD), a card-based transactions services business that provides fraud prevention to the finance, telecommunications, retail and e-commerce sectors; and Creative Risk Management Solutions (CRMS), a specialist in credit card fraud insurance.

“Online credit card fraud is a significant risk to etailers and a barrier to online retail growth,” said W. Bruce Murray Jr., vice president of RC Knox & Company, which will be marketing the new product. “Currently, many etailers suffer the loss of revenue from Internet credit card fraud and must pay additional chargeback fees assessed by their credit card processors. The eTailer Fraud Solution Policy integrates fraud detection technology with an insurance and risk management product, a combination no other insurer or agency offers.”

The eFSIP requires the use of Retail Decisions’ fraud prevention and detection solutions to provide online merchants the ability to monitor online transactions, spot fraudulent transactions in real time, and take steps to minimize fraud losses.

The eFSIP also includes catastrophic fraud insurance coverage – which has flexible deductibles and limits – that protects the capital of online merchants while allowing them to sell products in a more secure environment.

“The combination of this insurance policy with the ReD’s comprehensive fraud detection solution will provide protection from losses sustained from the use of credit card account numbers with the intent to deceive. It features flexible deductibles and limits to protect our customers’ capital while allowing them to sell products in a more secure environment,” said Thomas P. Mulligan, president, Creative Risk Management Solutions LLC.

RC Knox & Company, the insurance subsidiary of People’s Bank, specializes in commercial and personal property and casualty insurance; life, health and employee benefits; and bonding, risk management and pension services. Beardsley Brown & Bassett, a division of RC Knox located in Bridgeport, provides a range of commercial and employee benefits insurance products. An insurance subsidiary of People’s Bank, Knox was founded in 1893 and is one of the nation’s 100 largest insurance agencies. Beardsley, Brown & Bassett was established in 1884.

People’s is a diversified financial services company providing commercial, consumer, insurance and investment services. Founded in 1842, it is the largest state-chartered bank in Connecticut with managed assets of $14 billion and 143 branches. Services include consumer and commercial banking, residential lending, insurance sales and supermarket banking. People’s subsidiaries offer brokerage services, asset management, equipment financing and leasing, and insurance services.

Creative Risk Management Solutions is an insurance agency with over 50 years credit card experience and specializes in marketing fraud insurance to the credit card industry. Its goal is to provide options of creative risk management that will result in safety for customers’ credit card operations.

Retail Decisions is a card-based transactions services business that provides fraud prevention to the finance, telecommunications, retail and e-commerce sectors. Using risk management and analysis tools, ReD is able to predict and prevent payment card fraud. ReD PRISM, a new division of Retail Decision plc, is a leading provider of intelligent decision-support solutions for the financial services and e-commerce industries. ReD PRISM’s client/server products incorporate innovative pattern-recognition technologies suited for data-intensive, real-time decision applications.

Topics Fraud Risk Management