In a new era of marketplace risk, being proactive can really pay off. EverC marketplace risk expert Anna Pogreb explained why at a recent webinar with Marketplace Risk, “From Reactive to Proactive: Redefining Risk Management for Marketplaces.” During the webinar, Pogreb discusses the key parts of a robust framework, including how to prepare for risks, such as seller risk, that are unique to marketplaces.
“Being proactive in terms of risk and fraud actually enables the business to grow safely, to grow in a safe space, and to grow sustainably, says Pogreb. “It allows marketplaces to be ahead of their competition at the time when the new regulation hits, because instead of scrambling around trying to reactively think, ‘How are we going to cover this new thing?’ the proactive team has already thought about it up front and built this system of checks and balances.”
The first step is to review their platforms through “the eye of a bad guy,” who is always looking for vulnerabilities. Pogreb said, “When we think this way, we start thinking about which checks and balances to install into that product offering, into that new market expansion, into the new promotions that the company is doing.”
Next, compliance teams must consider different scenarios, ask questions, and find a balance. The goal is to have a framework that will allow good customers to use it without problems, but at the same time make it as difficult as possible for the fraudsters.
When compliance makes it too difficult for fraudsters, they will often move on, says Pogreb. “When you build your risk strategies, you can make performing fraud on your particular platform so difficult that they will just go someplace else where it’s much easier for them and they don’t have to work that hard.” Want to know more?
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