Risk scoring system


Effective risk management in e-commerce is not a one-size-fits-all solution. Each business faces unique challenges and risks, necessitating a tailored approach. TOOLBX understands this complexity and offers a comprehensive risk management solution for our dealers. Our system, which combines static rules with advanced machine learning, is designed to combat fraud effectively while also maximizing transaction conversions.

How our risk scoring works

At the heart of our risk management solution is a sophisticated scoring system. This system evaluates each transaction against various risk parameters, assigning it a total risk score. Transactions scoring above 65 are flagged for manual review in our case management system, while those exceeding a score of 100 are automatically rejected.

Types of risk rules implemented by TOOLBX

Velocity rules

These rules assess the risk based on the frequency of transactions attempted by a shopper within a specific timeframe. High transaction velocity can indicate potential fraud.

Consistency rules

These rules involve scrutinizing transaction data for discrepancies. They play a crucial role in fraud detection by comparing various data points, such as:

  • Billing address mismatch with the cardholder’s address.

  • Inconsistencies in Card Verification Code (CVC2/CVV2/CID).

  • Liability shift status, especially in cases where 3DS is not applied.

ShopperDNA rules

ShopperDNA is a dynamic tool that links related transactions to identify a shopper’s profile, even as they change devices, networks, or identities. This system:

  • Identifies transactions sharing common identifiers like email, credit card number, or IP address.

  • Analyzes the strength and uniqueness of these identifiers.

  • Connects transactions that meet a certain confidence threshold to the same shopper entity.

Block and trust lists

TOOLBX enables dealers to specify customers for block or trust lists based on specific information such as email, address, and name. This feature allows for personalized risk management.

Automated risk (machine learning)

Our advanced machine learning algorithms play a significant role in risk assessment. They continuously adapt to evolving fraud patterns, ensuring that our risk rules remain effective and up-to-date.

TOOLBX is committed to maintaining the highest standard of risk management for our dealers. We constantly monitor and update our risk rules to align with current trends and conditions, ensuring that the risk to our dealers is minimized effectively.