Disruption. Disrupting. Disruptor. It’s become quite the buzzword these days. But behind the hype, serious changes are taking place in almost every industry.
These changes aren’t abstract, either. Consumer-centric businesses are disrupting primarily on customer experience.
When you hit a ride share instead of a taxi cab, or transfer money to a friend via an app, you’re benefiting from disruption.
The key to this disruption? Stellar customer experience
The new role of the fraud prevention department is to enable an amazing experience without exposing the business to increased risk.
Because the new reality is that customer experience is paramount. This is great news for consumers. It’s even better for fraudsters, since the “one-click” experience removes a lot of traditional fraud barriers.
Even if fraudsters aren’t focused on you yet, that can change in an instant. In this new world, you should expect every part of your process to be continuously and thoroughly examined for potential weaknesses and opportunities.
If, and when, weaknesses are found—you can bet word will spread like wildfire on fraudster communities and forums.
The key to stellar customer experience? Networked intelligence
Today’s fraudsters operate with a high level of sophistication. Using underground networks, they can defraud companies across the globe, 24/7, from the comfort of their home.
There are a lot of benefits in knowing what your peers are facing. Intelligence around fraud events allows you to identify risky behaviors faster. Then, you can react before they become a problem.
There’s a flip side, too: the same process works with legitimate customers. When you can identify positive behaviors, you can approve those customers more quickly.
Having the right fraud management capabilities in place can help process transactions faster, avoid fraud losses and keep customers happy.
Key to these benefits is building a clear picture of who is behind a transaction. Verifying only standard transaction data, such as name or address, opens a lot of gaps. There’s no way to tell if the person behind them is actually a fraudster using stolen information.
Using networked intelligence to capture a broader view of activity, gives clarity to a transaction’s risk profile.
As companies look to expand online market share, it’s only natural that fraud will rise. You can try to control that fraud risk by tightening up the checkout process and requiring customers to submit additional forms of verification.
But in this one click world, customer experience matters. If your controls make it difficult for customers to get what they want, you will lose business to competitors who provide a better experience.
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