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Kounting the cost of fraud

Keynetics (opens in new tab)has taken the wraps off Kount (opens in new tab), an online fraud detection and control technology for online retailers.

The system, which is being shown at the National Retail Federation 2008 Expo currently taking place in New York, uses advanced geo-location technology to pin-point an Internet users’ location when s/he makes their purchase, as well as taking a dynamic approach to the scoring of the fraud potential of the transaction.

According to Brad Wiskirchen (opens in new tab), the firm’s CEO, legacy technologies such as neural networks, Bayesian inference, and machine fingerprinting are no longer enough to guard against the problem of online fraud.

These are legacy systems? -Ed

“Today’s criminals are very sophisticated and highly aggressive. What’s more, they’re strategically organising against online retailers and money transfer agents,” he said.

Keynetics reckons that, as it also owns ClickBank, an online retailer of ebooks and software, it is able to assess how much dosh is really being lost to online fraud.

And since putting the Kount technology to work, ClickBank is said to have reduced fraud losses by more than 30 per cent.

Have a peek here (opens in new tab) for more info on Kount…