Enhancing the Future of D2C with Advanced Fraud Prevention Solutions

Strengthening D2C with Advanced Fraud Detection

In a significant move to bolster the D2C (Direct-to-Consumer) landscape, Ure-net Advertising Group (Ticker Symbol: 9235), based in Fukuoka, has announced an enhanced collaboration with Kakko Inc. (Ticker Symbol: 4166), a Tokyo-based company specializing in fraud detection solutions. The partnership focuses on integrating Kakko's state-of-the-art fraud detection service, O-PLUX, into Ure-net's cloud service platform, "Ure-net D2C Tsuku-ru," specifically tailored for online retailers.

The Challenge of Fraud in D2C

As the popularity of D2C continues to rise, so does the prevalence of fraudulent activities. Reports indicate that Japan's D2C sector is grappling with a relentless increase in fraud, impacting approximately 42% of D2C businesses. The financial ramifications are staggering, with credit card fraud in Japan projected to hit a historic high of 55.5 billion yen by 2024. This alarming trend underscores the urgent need for D2C companies to adopt effective fraud prevention measures.

Fraudulent practices include identity theft, where individuals use someone else’s personal data to place orders, and malicious reselling, which involves purchasing goods to sell them at inflated prices, undermining the original market.

New Functionalities in Ure-net D2C Tsuku-ru

In response to these challenges, Ure-net has rolled out an upgraded version of its fraud detection capabilities within the Ure-net D2C Tsuku-ru service. This new version leverages "communication information of phone numbers" through its collaboration with O-PLUX, significantly enhancing the detection of fraudulent orders. The integration offers real-time verification of existing phone numbers, allowing the platform to identify non-existent or unreachable numbers, which greatly improves pre-blocking rates for suspicious or fraudulent activities.

Key Features of the D2C Fraud Prevention Package

1. Integration with O-PLUX: Implementing the latest fraud detection algorithms to block fraudulent credit card usage and reselling orders in real-time.
2. Address Verification: Partnering with Geotechnologies Inc. for a service that verifies addresses to mitigate risks associated with false orders.
3. Customizable Error Messages: Tailoring error messages for detected fraudulent orders to suit individual business needs.
4. Customized Detection Rules: Allowing businesses to set unique detection rules based on their specific fraud trends.
5. 3D Secure and Security Code Policy: Enabling all connected payment processing providers to enhance security through 3D Secure verification and mandatory security code input.

Additional Support and Consulting

For those continue to experience challenges despite adopting these measures, Ure-net is providing fraud prevention consulting services. These services include assistance with AI-integrated WAF solutions and specialized tools designed to prevent unauthorized access.

Future Perspectives

Looking ahead, Ure-net is committed to accelerating the development of AI-driven fraud detection features within its D2C platform. Plans are underway to implement automated learning fraud prevention functionalities linked to purchase histories and behavior patterns.

Additionally, Ure-net aspires to establish a proprietary D2C security standard through its strengthened collaboration with O-PLUX, expanding its scalability beyond Japan to markets across Asia and North America.

With the mission of safeguarding the D2C ecosystem, Ure-net Advertising Group aims to lead the standardization of D2C infrastructure, fostering sustainable growth and maximizing corporate value in the long run. The short-term impact on overall business performance is anticipated to be minimal, yet crucial for long-term SaaS revenue and stock-based sales.

About Ure-net Advertising Group

Founded in January 2010, Ure-net Advertising Group has a vision of creating numerous success stories through its "Strong Selling Know-how" across the globe. The group continues to develop services that directly contribute to improving operational efficiency and revenue for D2C businesses.

For inquiries regarding this release, please contact:

- Ure-net Advertising Group, CFO Musai Uekihara
- Email: [email protected]
- Phone: +81 92-834-5520