Zumigo Launches Industry's First Location-Based Merchant Payments Validation Service to Prevent Credit Card Fraud During Online Purchases

LAS VEGAS, NV--(Marketwired - Mar 24, 2015) - (MRC Vegas 2015, Booth Number 624) - Zumigo Corporation, a leader in mobile device location and identity verification, today introduced the industry's first merchant payments validation service based on the real-time location of a customer's mobile phone, as well as a service to verify consumers' identity and credit card credentials during online purchases to prevent e-Commerce fraud. This new functionality of the Zumigo Assure Payments™ mobile solution is being launched at the MRC (Mobile Risk Council) Vegas 2015 conference this week in Las Vegas, in Zumigo's booth number 624.

While merchant processors confirm if a payment is authorized, they don't protect merchants from later charge-backs if the credit card credentials are determined to be stolen. If fraud occurs, merchants have already shipped the merchandise and incur the full brunt of the loss. Now with Zumigo, merchants can have an additional layer of protection from thieves using stolen credit card credentials. By verifying the transaction information supplied by a consumer, such as name, address and mobile number, merchants can prevent fraudulent purchases before they happen.

According to the 2014 LexisNexis® True Cost of Fraud(SM) Study, "Large e-Commerce merchants tend to over-rely on CVV in online card transactions, and this segment uses fewer fraud- prevention solutions in 2014 compared to 2013...No one solution is perfectly effective against online fraud, so e-Commerce merchants should take advantage of compensating controls to verify the customer identity, device, and payment method being used to make remote purchases."¹

Zumigo's new solution verifies the purchaser's identity against mobile billing records delivered through Zumigo's partnership with mobile operators and Equifax. This verification includes matching the credit card ownership details against the owner of the mobile device identified to the shopping cart. In addition, Zumigo can identify the real-time location of the mobile phone to be compared against the IP address, as well as the shipping and billing address of the purchaser. When all of these relevant data points match, merchants can be assured of a lower-risk transaction while identifying higher-risk ones for additional scrutiny or denial.