Lumen by XOR helps Shopify merchants protect consumers
Austin-based data and analytics company XOR Data Exchange has released a new application of its popular Compromised Identity Exchange platform to help Shopify store owners protect customers from identity theft and fraud. The free application called Lumen by XOR allows Shopify merchants to automatically begin identifying attempts at account takeover simply by installing the app on their storefronts.
Lumen provides risk insights for each customer in order to help deter fraudulent purchases using stolen login credentials. When an order is received, Lumen provides information to the merchant indicating the risk that the customer’s login credentials may have been compromised by one or more data breaches so the merchant can take measures to confirm the identity of the customer before processing an order.
Online card not present (CNP) fraud has grown rapidly following the implementation of EMV card chips in the U.S., and more than 2 billion consumer records were made available for sale on the Dark Web in 2016 alone. Although many fraud and chargeback service providers are effective in catching spending anomalies or suspicious behavior associated with an individual consumer or a single payment source, it is very difficult to detect fraudulent activity before the damage is done. Evaluating account takeover risk before a purchase is fulfilled allows retailers to identify fraud earlier, before losses are incurred by the customer or merchant.
“Recent studies show that 75 percent of consumers are using the same or similar username and password combinations across multiple websites,” said Mike Cook, founder and CEO of XOR. “If one company has a data breach and those credentials are compromised, fraudsters can easily gain access to bank accounts or digital storefronts where credit card or payment information has been saved.
“Shopify’s software represents 400,000 online stores and $34 billion in sales. Just by installing Lumen, shop owners could begin preventing millions of attempts at fraud each year and help customers break the bad habit of recycling passwords across the Web.”
In a 2016 interview regarding the platform, Eva Velasquez, CEO of the Identity Theft Resource Center, commented, “Passwords are often the first protective measure from identity theft, and it’s important to make sure the doors to each account cannot be opened by the same key. When every stakeholder is working to ensure the privacy and security of personal information, one can hope to see a measurable impact on reducing identity theft and fraud losses. The ITRC recognizes companies like XOR for helping these stakeholders fulfill their end of the bargain.”
Shopify store owners interested in adding Lumen’s insights into their workflow can do so by installing the application at https://apps.shopify.com/lumen-by-xor or by visiting the Shopify App store and searching for “Lumen by XOR.” Installation is simple and allows shop owners to immediately begin evaluating customer transactions to spot identity theft. Online retailers not using Shopify can also take advantage of the same insights by requesting a free API Key for the Compromised Identity Exchange Basic platform.