GUESS? Overcomes Online Fraud By Heidi Larson

GUESS, Inc. Started as a jeans company Now makes all types of apparel Brick-and-click company Guess.com launched in 1999

Financials 2003 Sales - $636.6 million Increase from Net Income - $7.3 million Increase from ,800 employees in 2003

Major Competitors Levi Strauss & Co Sales- $4.09 billion 2003 Net Income- ($349.3) million Gap 2003 Sales- $14.45 billion 2003 Net Income- $477.5 million Diesel 2003 Sales- $760 million

Problem People started using stolen credit cards to order products from Guess.com Company is responsible for cost Company experienced huge losses

Solution CyberSource Internet Fraud Screen (IFS) When credit card is used, information is transferred from Guess.com to CyberSource Routed to card’s payment processor and is either accepted or declined CyberSource determines fraud risk Transaction obtains risk factor GUESS makes decision to accept or reject card

Questions 1. This system is used for online credit card payments. Can it be used for other e-payment methods? Explain. This system could be used if people use electronic checks. They can make sure there is money in the account.

Questions 2. What are the advantages of such a system for GUESS? GUESS reduces cost with fraudulent purchases. As a result, they can keep their prices to a minimum. Also, not only do they catch thieves, but they also prevent thieves.

Questions 3. Review the benefits for international export. With this new software, GUESS is able to convert currencies. This makes it a lot easier to sell products to foreign countries.

Questions 4. Relate this case to the opening case of this chapter. Do you think that this solution could be applied to LensDoc’s problem? Why or Why not? Yes. LensDoc’s current system is slow and outdated. By using this solution, the process would be quicker.

Conclusion Online fraud is a major problem All online companies need a plan GUESS’s use of CyberSource is an excellent example By doing this, they save themselves time, money, and frustration