Taking cues from ‘community watch’ groups, a new scoring service uses the power of community to protect online merchants against fraud. More than 16,000 internet retailers provide the information to power 3dcart’s new ‘Community Alert’ feature, a free service that calculates risk based on the experience of other

Taking cues from ‘community watch’ groups, a new scoring service uses the power of community to protect online merchants against fraud. More than 16,000 internet retailers provide the information to power 3dcart’s new ‘Community Alert’ feature, a free service that calculates risk based on the experience of other 3dcart merchants in the community.

3dcart just launched Community Alert—the first service of its kind in the ecommerce industry—in beta to current merchants. Existing online retailers using 3dcart can opt-in for free if they’re interested in trying it out. New retailers getting started with 3dcart gain access to fraud prevention data from some of the largest merchants on the web—a huge value addition for people breaking into ecommerce and still evaluating shopping cart options.

How it works: Each 3dcart merchant has the ability to contribute to the Community Alert by reporting fraudulent orders to a community database. Based on these reports, retailers taking part in the program receive a free Community Score that rates the risk of accepting the transaction. Scores are generated in real-time as orders enter the merchant’s system so retailers can make decisions on the fly.

“Community Alert strengthens the bonds of 3dcart’s merchant community while offering a free way to improve security and minimize risk,” said 3dcart CEO Gonzalo Gil. “We added the feature based on two major differentiators: proactive recognition of potential fraud and the power of experienced human intervention to help measure the actual risk.”

Scores are rated based on three color-coded levels of risk and a 10-point number scale, making them simple to read and react to quickly and efficiently. The score for each customer also lists the number of transactions associated with them across the community.

3dcart guarantees complete privacy for each merchant that takes part in the program. Even though fraud statuses and scores are shared with the community, no information from stores or shoppers is compromised, ensuring total anonymity and protection of other sensitive data.

To opt in for Community Alert beta, contact 3dcart staff. Visit http://www.3dcart.com for more information on how 3dcart helps combat fraud.

More info: http://paymentsmarket.com/news/internet-retailers-band-together-fight-fraud-community