1. Review and prepare systems
Deploy automated risk strategies, as this can help reduce manual review rates and lower call center operational expenses, reducing demand on internal resources. Also, utilize early warning indicators – access to early warning indicators, such as acquirer reported fraud, will help merchants to reduce exposure and mitigate losses as quickly as possible if under attack.
2. Identify weak points
Understand pitfalls from previous peak trading days and tailor strategies to ensure history does not repeat. For example, if delivery fraud was previously a problem, identify the postcodes which need higher review rates and re-focus reviews and resources from those areas which pose less risk. Also consider anything that’s changed since the last peak trading period. What changes have been made to product lines, sales channels, available payment methods and delivery options? Are these new initiatives protected with specific and tailored fraud rules and strategies?
3. Consider the customer experience and reduce friction for genuine customers
Customers shop across a variety of channels and touch points, so it is important to recognise and enable loyal customers, regardless of the device or sales channel they are using. Use customer profiling and time on file techniques to maintain the customer experience for valued customers and ensure good transactions are still accepted, while still being vigilant against popular methods of attack such at account takeover.
4. Understand trends and learn from manual reviews
Analyze and monitor fraudulent hot spots and trends. Understand which cards, IP and email addresses pose the biggest threat, and ensure they are factored them into rules and alert triggers. Good security requires that people, technology and processes work together in applying security, as fraudsters will exploit any weakness.
We recommend that merchants retain one individual to look holistically at data and trends including decisions, individual performances, rules, volumes and KPIs (Key Performance Indicators). Manual (authentication and verification of cardholders) reviews are still important and every review adds to the wealth of fraud intelligence that can be used to inform decision-making. It is also important to be aware of other parts of the payment process that can trigger declines – 3D Secure, AVS/CV2 responses and bank declines, which can trigger multiple attempts from customers.
5. Cross-functional communication business
Working closely with IT, finance, customer services and marketing can help build a picture of what happened previously, and inform decisions going forward. In particular, understand key campaigns and promotions. Is the marketing team planning anything that could inadvertently provide opportunities for fraudsters? Gather information and raise concerns and potential problems. Offer solutions informed by fraud monitoring processes, analytics and reporting.
6. Continue to monitor and update
Use business intelligence tools and real-time monitoring to help make up-to-the-minute decisions and provide faster responses. Use rapid access to fraud intelligence to inform rules changes in real-time.
By working with experienced risk analysts to review and refine fraud strategy, and discuss fraud rulesets, merchants will be in the best possible position to deliver a seamless, secure and satisfying shopping experience to customers during peak trading, with minimal business interruption.
ACI Fraud Management for Merchants 
