You might recall I blogged about a bill being introduced to the GA legislature over a year ago to allow direct wine shipments into the State.
Earlier this week, Governor Sunny Perdue signed House Bill 1061 which allows wineries to ship wine directly to Georgians provided they have a “special order” shipping license from the State ($50 per year). With this license, wineries will be allowed to ship up to 12 standard cases of wine brand labels submitted to the State to an individual consumer over the course of a year.
In addition, the holder of a special order shipping license must require proper age verification for the consumer placing the order. Age may be verified by physical examination of government issued ID or by using an Internet based age and identification service.
The law takes effect July 1, 2008.
Customers and non-customers of a credit union recently received fraudulent emails as part of an elaborate phishing scam. It appears that the fraudster included IDology’s brand as part of their attempt to capture consumers banking information by setting up a fake website that looks similar to our corporate website.
First, I would like to emphatically say that IDology is dedicated to consumer privacy and protecting sensitive data. It’s important to understand that while our services might involve consumer interaction, we do not directly target consumers. Our “customers” are businesses. This means we would never capture personal information like a SSN or bank account information from anyone on our website.
Ironically, if the hosting provider had been using our services then we would have spotted the fraud before they could have set up the website. I am wondering how much less phishing scams would occur for financial institutions if the hosting provider required identity verification before they hosted a website.
Here are some great sites to visit to learn more about phishing scams and fake emails and how to recognize them:
I got the early edition of Cybersource’s 9th annual fraud report today. I haven’t had time to fully absorb/read all of the information but there were some facts that jumped out at me:
- 82% of merchants are manually checking orders today with 1 out of 3 orders being manually reviewed. Merchants also indicated that over three-fourths of the orders manually reviewed were accepted.
- Online merchants increased their spending on manual review staff in 2007 by as much as $100 million.
What does this mean? Online merchants still need to embrace automated fraud detection tools including identity verification to keep pace with the growing ecommerce trends. Of course, the report did cover fraud detection tools as well.
- More than three-fourth’s of the merchants said they use 3 or more fraud detection tools with the average being 5.
- The two that top the list are Address Verification (80%) and Card Verification Number (74%). The 3rd tool choice, which is Company Specific Fraud Screens, shows a significant usage drop to 39%.
- 6% are using out-of-wallet or in-wallet challenge questions
What does this mean? More education is needed about identity verification including KBA solutions. Merchants need to understand the limitations Address and Card Verification Solutions have when it comes to fighting fraud and how using both basic id verification combined with KBA in scenarios where higher verification is needed reduces the need for manual review. We developed a whitepaper specifically for retail merchants last quarter that addresses these issues. I think it is probably time I talk with the marketing department about promoting that paper a bit more…