Retail Decisions (ReD), the card issuer and
world leader in card fraud prevention and payment processing, has
announced a significant extension of its contract with Virgin Mobile,
the UK’s largest virtual mobile network operator. The extension will see
ReD screen for card fraud and process more than 15 million payments per
year across Virgin Mobile’s call centre, Internet and IVR sales channels.
ReD’s own figures, based on over 11 billion card transactions, show that
telecommunications companies with pay-as-you-go operations face
increased threats from card fraud. In 2006, ReD saw a 50% rise in
attempted card fraud on prepaid top-up compared to the previous year.
ReD’s figures indicate that 58% of fraudsters are less likely to
perpetrate fraud with the same merchant after an unsuccessful attempt.
ReD is both preventing fraud and reducing future criminal activity for
The new contract will see Virgin Mobile outsource its fraud prevention
and payments processing to ReD for three years. By moving to a managed
service, Virgin Mobile removes the infrastructure expenditure required
to implement a system on-site and reduces its ongoing operational costs.
It also provides Virgin Mobile with the scalability to manage increased
numbers of transactions. ReD will process, authorise, authenticate,
settle and screen an estimated 50 million transactions over the length
of the contract, with each transaction processed in less than half a
The new contract incorporates ReD’s industry leading fraud prevention
system, ReD Shield. The service analyses transactions based on
customisable rules developed by ReD’s fraud experts specifically for
Virgin Mobile. The rules range from basic analysis of the frequency and
location of transactions, to complex analysis of a number of combined
factors that will indicate that a transaction is fraudulent. ReD Shield
provides a real-time risk assessment recommendation designed to allow
Virgin Mobile to reach a balance between preventing fraudulent
transactions, whilst maximising business from genuine customers.
Discussing the announcement, Carl Clump, CEO at ReD said, “We’re very
pleased to have extended our partnership with Virgin Mobile until 2009.
In particular, the movement to a managed service for fraud prevention by
Virgin Mobile is testament of our ability to deliver a high capacity,
yet high performance service. With three quarters of all mobile network
owners in the UK using ReD for fraud prevention, we have become the
service of choice to the telecommunications sector.”
Anita Douglas-Bains, Head of Financial Services at Virgin Mobile said,
“Over the past five years Virgin Mobile has experienced significant
growth in customer numbers and, consequently, payment transactions.
ReD’s technology has helped us maintain a fast, reliable and robust
payments service throughout. This was an important factor when we
extended our contract with ReD for the second time.”
Douglas-Bains continued, “ReD’s partnership approach and ability to
continually offer up-to-date value added services around the payment
transaction has made the decision to renew the contract the best one.”
ReD’s impressive list of blue chip telecommunications clients includes:
Virgin Mobile, AT&T, T-Mobile, Vodafone, O2, Hutchison 3G, MTN, Du,
Telfort and The Carphone Warehouse.
*About Retail Decisions*
Retail Decisions (ReD) is a payment card issuer and world leader in card
fraud prevention and payment processing. A specialist supplier to the
payments industry worldwide, ReD has over 19 years experience in the
fraud prevention market. Its blue-chip international clients come from
the global telecommunications, retail, travel, petroleum, logistics,
banking and the broader e-commerce sectors. They include Wal-Mart,
Macy’s, Bloomingdale’s, Tesco, Texaco, Shell, Comet, Travelocity,
T-Mobile and Virgin Mobile. Based in the UK, the company has offices in
the United States, Australia and South Africa with representation in
Japan and South America. More information about ReD is available at
*ReD’s Telecommunications Card Fraud Statistics*
* Prepaid top-up attempted card fraud rose by 50% in 2006.
* In July 2007 the Nokia 8600 was the most fraud prone handset.
* The most fraudulent day on record for pre-paid card fraud was New
Years Eve 2006, when ReD saw a substantial increase of 110% on a
*About Virgin Mobile*
Virgin Mobile is the UK’s largest mobile virtual network operator and
uses the T-Mobile’s network. Since its launch in November 1999, Virgin
Mobile has attracted more than 4 million customers.
Virgin Mobile is part of Virgin Media. The group is the first to be able
to offer ÃÂ¢ÃÂquadruple play’ to customers: mobile and fixed line telephony,
broadband Internet and television.
In the UK, Virgin Mobile phones are available direct on 0845 6000 600;
on the Web at www.virginmobile.co.uk or
on the high street at approximately 5,000 outlets including Virgin
Mobile Stores and those within Virgin Megastores, The Carphone
Warehouse, Phones 4 U, Currys, Currys.digital, Comet, Tesco, Asda, John
Lewis, Argos, Woolworths, Web retailers Dial-a-phone plus hundreds of
independent mobile phone dealers and available via Littlewoods Shop
Direct Home Shopping, Grattan and Empire home shopping channels. Virgin
Mobile employs approximately 1,700 staff at three sites, Trowbridge,
London and Daventry, and has an outsourced customer service centre
operated by approximately 200 staff in Middlesbrough.
Virgin Mobile was voted 22nd in the Best Workplaces in the UK Financial
Times survey for 2006 and is once again in the top 50 in 2007. Virgin
Mobile was honoured at Management Today’s Most Admired Companies Awards
2006, being voted the best company for the Ability to Attract, Develop
and Retain Top Talent.