The Cardfather, a new initiative by online retailer WantItAll.co.za, is putting fraud in its sights by giving online retailers a free database of flagged credit card holders which can be used to identify possible fraudulent activity on retail sites.
The initiative was started at Wantitall, which according to CEO, Justin Drennan, has seen an increase in the number of fraudulent transactions taking place through the site since its inception.
“We were concerned with the way in which certain financial institutions were dealing with fraudulent transactions,” Drennan said. “It was decided that in order to help improve the situation we’d need to take matters into our own hands and build a system to help prevent fraud.”
“The idea that collaborative work among like minded individuals, together with the wisdom of crowds, would lead to a reduction in fraud.”
“Essentially we’ve created a database where we store information around individuals who have perpetrated fraud online, and then shared that information amoungst a closed usergroup of online retailers, with the intent of reducing fraud,” said Drennan.
How it works
Cardfather.co.za is a free tool, which can be used by online retailers, Drennan explained.
“Once an individual has been identified as fraudulent, they are loaded into the Cardfather system by the retailer, along with any other pertinent information. Stores are then able to search the existing database of fraudulent users and, together with other criteria, try identify potentially fraudulent activity on the site.”
However, the Wantitall chief did emphasise that being listed on Cardfather was not an indicator of “certainty”, but rather that the system allows retailers to call other retailers to confirm fraudulent circumstances, and then make an educated decision regarding the orders in question.
There are currently over 50 sites using Cardfather, together with fraud investigators from the banks, and other institutions. Some of the associated companies include Bidorbuy.co.za, Takealot.com, Have2have, JunkMail and Look&Listen.