Vectors of fraud and abuse are growing by 20% year over year, and are shifting to different touch points in the customer journey. Account takeover attacks are growing increasingly sophisticated and fraud and abuse pain points are now no longer only limited to professional online criminals. Even merchants’ customers are getting in on the act through policy abuse, wherein they exploit loopholes in coupon programs, welcome benefits, referral bonuses, and loyalty rewards for their own benefit.
Today’s dynamic e-commerce climate, shifting consumer demands, and evolving fraud environment require more sophisticated and proactive fraud prevention. While legacy approaches once were sufficient, current transaction volumes and the variety of interactions (both legitimate and fraudulent) underscore gaps and weaknesses of legacy approaches.
In our latest webinar, Angela Whiteford, Chief Marketing Officer at Forter and Tim Sloane, VP of Payments and Innovation and Mercator Advisory Group sit down to discuss how retailers can pivot their fraud prevention strategies towards the path of digitization to enhance profitability, empower best-in-class customer and brand experience.
In this webinar we cover how merchants can:
- Increase top-line revenue by accurately identifying legitimate customers and approving more transactions
- Grow without risk to deliver new programs in new markets without worrying about fraud and abuse
- Digitally transform to ensure a more streamlined and trusted customer experience no matter how or where they shop
Why Legacy Fraud Systems Aren’t Enough
As e-commerce continues to shift and online channels becoming increasingly important to retailers, it is important to note the following weakness that these systems can create:
- Lower accuracy by focusing only on transactions. Most legacy solutions focus on the transactions rather than understanding the constant reputation of the digital identity behind them. Looking only at transactions rather than one’s digital identity yields inaccurate results and lost revenue.
- Gaps create easy targets for fraudsters. By managing fraud and abuse through multiple disparate tools, merchants suffer from a lack of coordination which creates gaps in protection that fraudsters can exploit. Information between these tools is also siloed, allowing instances of fraud and abuse to slip through the cracks.
- Scalability. Siloed solutions that were not built to work together are extremely difficult to scale. During peak periods, flash sales, or as new fraud vectors emerge, merchants will find it problematic to meet these shifting requirements while maintaining a seamless customer experience.
- Keeping up with new forms of fraud. Legacy systems that rely on rules or manual review teams are reactive rather than proactive, meaning the business will not be protected against new and evolving fraud and abuse trends.
- Risk avoidance. Due to fear of risk and the inability to amply protect their business, merchants avoid new products, offerings, and growth into new markets.
- Data exposure. Using multiple tools creates more exposure for sensitive and personally identifiable information (PII) of customers. This can trigger privacy and compliance issues
The Way Forward: 5 Essential Capabilities a Modern Fraud and Abuse Prevention System Requires
Merchants require a modern fraud and abuse prevention platform with the following capabilities:
- An integrated platform that provides protection across all customer touch points in the purchasing journey – from login, to coupon redemption, to delivery and returns experiences
- Global Data Network that allows you to have an accurate view of legitimate as well as fraudulent behaviors from across a wide global network, to avoid falsely declining legitimate customers
- Machine learning for greater accuracy
- Advanced fraud analytics for additional cyber and behavioral intelligence in addition to merchant data analysis
- Tailoring of fraud models to an individual enterprise to reduce friction for trusted customers and extending special services that other platforms would deem to be “too risky”
With this approach, merchants can shift from reactively plugging gaps to proactively taking back control over fraud mitigation and focus on growing their business, instead of worrying about fraud and abuse. Download the recording of our webinar now to learn more.