XOR launches free resource to help online retailers prevent identity theft, fraud
As data breaches become common in the connected world, XOR Data Exchange is stepping up to the plate to fight back against fraudulent activity, offering a way for online retailers to free way to assess risk and identify fraudulent transactions.
XOR’s new Compromised Identity Exchange Basic platform is an offshoot of the company’s full exchange, which debuted in May 2016. The new, basic version offers retailers full insight in real time regarding the potential that a specific transaction could be fraudulent.
The system determines this likelihood based on a history of data breaches associated with that individual user. The basic version provides retailers with a risk tier ranked either high, medium or low, along with the amount of time since the the most recent breach and format of any compromised password.
Eva Casey Velasquez, president and CEO of the Identity Theft Resource Center, said solutions such as XOR’s are an effort by banks and retailers to curb losses associated with identity theft. She said that the responsibility to prevent fraud falls on everyone’s shoulders — companies must protect their customers, banks must securely authorized transactions, and consumers must adhere to strong security standards.
“When every stakeholder is working to ensure the privacy and security of personal information, one can hope to see a measurable impact on reducing identity theft and fraud losses,” Velasquez said. “The ITRC recognizes companies like XOR for helping these stakeholders fulfill their end of the bargain.”
XOR’s Compromised Identity Exchange Basic will allow online retailers to implement additional verification of a user’s identity or payment and shipping details prior to approving a transaction or fulfilling an order.
The system will be available via an API key that can be requested direct from XOR.
The number of fraud victims in the U.S. increased 16 percent last year, despite the introduction of EMV chip-and-signature cards. Notably, card-not-present fraud increased by 40 percent.
“By taking advantage of this free insight into data breaches,” XOR founder and CEO Mike Cook said, “online retailers will be able to easily prevent attempts at identity theft and better protect themselves and consumers from massive financial losses.”